1. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding August 7, 2012

2. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Agenda Part 1: Funding Sources and Budgeting Requirements Part 2: Reversion and Maintenance of Effort

3. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Part 1: Funding Sources Block Grants, the Local Match, and the Minimum Amount to Avoid Reversion Reimbursement for Disproportionate Costs Special Education Tuition IDEA Part B and Preschool Medicaid Impact Aid

4. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources State Eligibility (ARM 10.16.3810) A district has a special education program if it: –has at least one resident student in its current fiscal year special ed child count ; -- or -- –Participates in a cooperative; -- or -- –Has a written agreement with another school district or cooperative to provide a special ed program if a student in need enrolls

5. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources State Eligibility (ARM 10.16.3810) - continued The following are not eligible if providing education services under contract with OPI: –Residential treatment facilities –Children’s psychiatric hospital

6. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources State Special Education Cooperative full service education cooperative or joint board (20-7-451, MCA) to provide special education services eligible for member districts’ RSBG and admin & travel costs if requirements in 20-7-457, MCA are met Allowable costs same as districts plus additional costs of operating the cooperative

7. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources State General Principles (ARM 10.16.3804) Funding based on legislative appropriation and current year ANB Local contributions (match) is required Expenditure of funds limited to certain allowable costs to provide services to children with disabilities, ages 3–21 Block grant system allows flexibility in methods within allowable cost guidelines OPI uses annual TFS to make determinations

8. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources State Distribution of legislative appropriation (20-9-321, MCA and ARM 10.16.3811) –52.5% to Instructional Block Grants Paid to school districts only –17.5% to Related Services Block Grants Paid to school districts or cooperatives –25% to Disproportionate Cost Reimbursements Paid to school districts only –5% to Admin & Travel Paid to cooperatives only

9. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Instructional Block Grant (IBG) 52.5% of legislature’s special ed allocation Funded on per-ANB basis (current ANB) Paid directly to district Part of BASE Budget Match required

10. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Related Services Block Grant (RSBG) 17.5% of legislature’s special ed allocation Funded on per-ANB basis (current ANB) Paid to district, or if member, to the Coop Part of BASE Budget Match required

11. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Reimbursement for Disproportionate Costs 25% of legislature’s special ed allocation Intended to reimburse those districts with unusually high special education costs Paid only to districts, not to Coops Part of Special Ed Allowable Cost Payment No requirement to spend on Special Ed costs

12. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Disproportionate Cost “Threshold” The district is eligible for Disproportionate Cost Reimbursement in this FY based on the amount of SPED Allowable costs from 2 FYs ago Reimbursement is made for amounts above the threshold Reimbursement received TWO fiscal years after expenditures are made (i.e. if high costs in FY08, reimbursement in FY10) State pays.40 for every $1 spent above threshold

13. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Does my District Qualify? Disproportionate Costs Reimbursement is paid to districts with Special Ed costs exceeding the “Threshold.” “Threshold” for eligibility based on these factors: –Legislative Appropriation X 25% –Special Ed Allowable Costs (expenditures) reported two years ago (FY10 based on FY08 TFS) –Special Ed amount to avoid reversion two years ago –Calculation considers only districts that had Special Ed expenditures greater than amount to avoid reversion

14. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Transfers and Payments to Other Districts and Cooperatives ARM 10.16.3815 (4) The following expenditures are not considered in determining reimbursement for disproportionate costs: –Special education money received as payment for services provided to other districts or cooperatives –Special education money transferred from another district or cooperative

15. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources State Administrative & Travel Cost Payment Paid to special education cooperative Distribution: –60% based on ANB counts of member districts –40% based on: # of member districts FTE for itinerant personnel Current Year ANB of member districts # of road miles within co-op boundaries

16. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Coop Admin & Travel 5% of legislature’s special ed allocation 60% based on ANB counts of member districts 40% based on # of member districts, FTE for itinerant personnel, CY ANB of member districts and # of road miles within co-op boundaries

17. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources State Quality Educator Payment (20-9-327, MCA) –Based on # of full-time equivalent educators Licensed educators Licensed professionals –Distributed to: School Districts Special Education Cooperatives MT School for the Deaf & Blind State youth correctional facilities Montana Youth Challenge Program

18. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Ed Tuition For Out-of-District Attendance Situations Regular Tuition Form (FP-14) and Special Tuition Form (FP-14A) required Regular Ed Tuition rates are limited by Montana Code Annotated (MCA) Special Ed Tuition rates have three options when calculated (Option A, Option B, and Option C)

19. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Unique Costs If requesting an add-on payment under Option B - Provide backup documentation to the entity you are charging - Pro Rata Special Ed costs (i.e. salaries, benefits for entire special ed staff) are NOT unique to an individual student - You are responsible to auditors in showing the add-on rates are legitimate

20. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources State State Paid Tuition 20-5-321(d) and (e), MCA –OPI pays tuition and transportation costs for non-resident students if: the child is under the protective care of a state agency or has been adjudicated to be a youth in need of intervention or a delinquent youth, as defined in 41-5-103, or the child is required to attend school outside of the district of residence as the result of a placement in foster care or a group home licensed by the state.

21. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov State Paid Tuition Deposit tuition receipts in General Fund (01) Deposit transportation receipts in Transportation Fund (10) If tuition receipts for current FY exceed previous FY, the excess can be deposited in the Misc. Programs Fund (15) using a unique project reporter code

22. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Unspent tuition receipts in Fund 15 as of June 30 must be transferred to the General Fund $$ transferred will increase end of year fund balance and will be subject to 10% operating reserve limit If reserves are full at year end, the excess will be re-appropriated to fund the BASE budget in the ensuing year State Paid Tuition

23. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources IDEA Part B Federal program “IDEA” = Individuals with Disabilities Education Act Coops receive allocations on behalf of member districts

24. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Medicaid Reimbursements Administered by Dept. of Public Health & Human Services (DPHHS) DPHHS Contact: Rena Steyaert Available programs –Direct Services or Direct Care –Medicaid Administrative Claiming (MAC) –Comprehensive School & Community Treatment (CSCT)

25. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Medicaid Reimbursements Direct Services or Direct Care Requirements: –Client/child qualifies for IDEA –Services are written into the IEP –Client/child must be Medicaid eligible on the date of service –Client/child must be between ages of 3 and 20

26. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Medicaid Reimbursements Direct Services or Direct Care – cont’d Examples of services: –Private duty nursing –Personal care assistance –Psychotherapy and psych testing –Speech therapy –Comprehensive hearing test –Physical therapy –Occupational therapy –... and more

27. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Medicaid Reimbursements Medicaid Administrative Claiming (MAC) Reimbursement for costs of administering school-based health services and outreach activities that are not claimable under the Medicaid Direct Services program. Services include activities to locate, identify and refer individuals needing medical, dental or mental health related services after the initial IEP is developed.

28. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Medicaid Reimbursements Medicaid Administrative Claiming (MAC) Random Moment Study (RMS) –Measures work effort of staff involved in school’s medical and health related services –Provides a statistically valid means of determining the portion of staff workloads applicable to reimbursable activities

29. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Medicaid Reimbursements Medicaid Administrative Claiming (MAC) Participant List –Direct, contract or part-time employees or others receiving pay from the school –Must perform reimbursable activities –Does not include staff compensated 100% from Federal funds or parent and volunteers that receive no compensation from the school

30. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Medicaid Reimbursements Medicaid Administrative Claiming (MAC) Quarterly Financial Data Report –For 1 st, 2 nd and 4 th quarters –Generates reimbursement “invoice” Lists each participant and their salary and benefits for the quarter Lists other district-wide expenditures Includes RMS form

31. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Medicaid Reimbursements Comprehensive School and Community Treatment (CSCT) Mental health services for children diagnosed with a Severe Emotional Disturbance (SED) –Service must be medically necessary –Service must be available to all qualifying children, not just children eligible for Medicaid

32. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Medicaid Reimbursements Comprehensive School and Community Treatment (CSCT) School enters into a contract with a Mental Health Agency for mental health services –Program requires 2 mental health workers – a licensed professional and a behavioral specialist –Types of services Individual, family and group therapy Behavior intervention Crisis intervention Continued treatment during non-school days (coordinated through contract)

33. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Medicaid Reimbursements Comprehensive School and Community Treatment (CSCT) Reimbursement calculated using a Federal Medical Assistance Percentage (FMAP) –Effective Oct. 1, 2008, FMAP increased from 68.04% to 76.29% –Retroactive adjustments – watch your Explanation of Benefits (EOB) $$ received must be passed through to the Mental Health Agency At the end of each calendar year: –Provide DPHHS with verification that reimbursement was passed through to the Mental Health Agency –Provide DPHHS with match statement DPHHS notifies district of % required match in January District can generate match statement in MAEFAIRS system

34. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Special Education Funding Sources Impact Aid Flat allocation based on CWD count, LOT percentage Must spend for special ed purposes Funds may be accumulated from year to year Counts toward reversion spending Does not count toward IDEA Part B MOE May access Retirement Fund (14) for employer share of retirement costs for employees paid with Impact Aid funds

35. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Part 2: Allowable Costs, Reversion and MOE Allowable Costs –State Funds –Federal Funds Reversion Maintenance of Effort

36. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov State Special Education Allowable Costs Allowable costs (costs for special education programs) See 20-7-431, MCA Instructional services Related services ARM 10.16.3806 instructional services ARM 10.16.3807 related services ARM 10.16.3808 cooperatives

37. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov State Special Education Allowable Costs Allowable costs do not include the entire cost of operating a special education program ARM 10.16.3805 excludes: - Employer contributions to TRS, PERS, FICA, and unemployment insurance - Admin, teachers or aides necessary to meet accreditation - Transportation (see also ARM 10.16.3820) - Most administrative support personnel - Overhead costs

38. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov State Special Education Allowable Costs Allowable expenditures to avoid reversion picked up from the following funds ARM 10.16.3813(2)(a): –General (01) –Metal Mines (24) –State Mining Impact (25) –Impact Aid (26)

39. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov State Special Education Allowable Costs Expenditure codes counted toward reversion: (Program) (Function) --(Objects)-- –280 1XXX 1XX - 7XX –280 21XX 1XX – 7XX –280 221X 1XX - 7XX –280 222X 1XX - 7XX –280 24XX** 1XX - 2XX –280 62XX 920 * * Only allowed if a certified special education director is employed.

40. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov IDEA Part B Funds Awarded annually Grant period is July 1-June 30 Intended to supplement the cost for special education services Allocation based on base payment and poverty/enrollment Additional funding, supplemental flow-thru, is allocated based on poverty/enrollment to assist districts with program improvement activities for students with disabilities.

41. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov IDEA Part B Funds Allowable: Cost of Delivering IEP Services Salaries of special education personnel Equipment Supplies/Materials Personnel Training Administrative costs of cooperative Assistive technology/adaptive equipment Transportation related to provision of special education services Construction or Alteration of facilities (additional requirements)

42. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov IDEA Part B Funds Allowable Costs Other considerations IDEA grant must pay employer share of retirement costs for employees paid with IDEA funds –TRS –PERS –FICA –Unemployment Carryover: 100% of current year award

43. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Medicaid Reimbursements Deposit Medicaid receipts in Misc. Programs Fund (15) May be used for any school purpose (20-9-507, MCA) Expenditures coded to program 280 do not count toward IDEA Part-B MOE No deadline in which to spend money

44. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov State Special Ed Funding - Reversion Coop member districts: Instructional Block Grant +1/3 Instructional Block Grant +1/3 Related Services Block Grant = Minimum Sp Ed Expenditures to Avoid Reversion Non-member districts: Instructional Block Grant +Related Services Block Grant +1/3 Instructional Block Grant +1/3 Related Services Block Grant = Minimum Sp Ed Expenditures to Avoid Reversion

45. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Coop member districts: Instructional Block Grant +1/3 Instructional Block Grant +1/3 Related Services Block Grant = Minimum Sp Ed Expenditures to Avoid Reversion Non-member districts: Instructional Block Grant +Related Services Block Grant +1/3 Instructional Block Grant +1/3 Related Services Block Grant = Minimum Sp Ed Expenditures to Avoid Reversion Coop Member? Yes: RSBG Paid to Coop No: RSBG paid to and budgeted for at the district level Difference between Coop and Non-Coop

46. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Coop member districts: Instructional Block Grant +1/3 Instructional Block Grant +1/3 Related Services Block Grant = Minimum Sp Ed Expenditures to Avoid Reversion Non-member districts: Instructional Block Grant +Related Services Block Grant +1/3 Instructional Block Grant +1/3 Related Services Block Grant = Minimum Sp Ed Expenditures to Avoid Reversion ALL Districts must match IBG and RSBG Difference between Coop and Non-Coop

47. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Difference between Coop and Non-Coop

48. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Where is the RSBG? Difference between Coop and Non-Coop

49. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Coop Member Prelim. Budget Data Sheet: Coop member: RSBG Paid directly to Coop. District Still Matches RSBG IBG always paid to district

50. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Non-Coop Member Prelim. Budget Data Sheet: Non-Coop Member: RSBG Paid to District (RSBG Rate x ANB)

51. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Prelim. Budget Data Sheet Instructional Block Grant + Related Services Block Grant (if NOT in coop) + 1/3 Instructional Block Grant + 1/3 Related Services Block Grant Minimum Expenditures to Avoid Reversion Local Match

52. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Reversion Expenditures Listed in 20-7-431, MCA Picked up from following funds: –General (01) –Metal Mines (24) –State Mining Impact (25) –Impact Aid (26) Expenditure codes counting toward reversion: –280 1XXX 1XX - 7XX –280 21XX 1XX – 7XX –280 221X 1XX - 7XX –280 222X 1XX - 7XX –280 24XX* 1XX - 2XX –280 62XX 920 * Salaries and benefits under function 24XX are only allowed if a certified special education director is employed.

53. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Reversion Expenditures Listed in 20-7-431, MCA Picked up from following funds: –General (01) –Metal Mines (24) –State Mining Impact (25) –Impact Aid (26) Expenditure codes counting toward reversion: –280 1XXX 1XX - 7XX –280 21XX 1XX - 7XX –280 221X 1XX - 7XX –280 222X 1XX - 7XX –280 24XX* 1XX - 2XX –280 62XX 920 * Salaries and benefits under function 24XX are only allowed if a certified special education director is employed. NOTE: Money and match sent to the coop is “Allowable Cost!”

54. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Prelim. Budget Data Sheet Reimbursement for Disproportionate Costs are NOT included in Minimum Sped Expenditures to avoid Reversion

55. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov IDEA Part B Funds Maintenance of Fiscal Effort Basic Requirement *IDEA Part B Funds may not be used to reduce the level of state/local or local fund expenditures for special education below the level of expenditures for the preceding fiscal year.

56. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Maintenance of Effort Expenditures

57. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov How Does An Applicant Know If They Maintained Effort? OPI calculates MOE using the Trustees’ Financial Summary (TFS) OPI sends two reports to the Part B applicant –Preliminary and Final Both Reports show –expenditures for state/local funds –allowed reduction and decrease in enrollment (calculates per capita)

58. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Maintenance of Fiscal Effort Allowed Exceptions 1.Voluntary departure, by retirement or otherwise, or departure for just cause of special education personnel * 2.Decrease in enrollment of children with disabilities 3.Termination of the obligation of the district to provide a special education program to a particular child that is exceptionally costly (e.g., student left the district; no longer requires the special education program) * 4.Long-term purchases (i.e., equipment/ facilities) * District must document to OPI

59. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Maintenance of Effort Report From TFS report Allowable reduction = 50% of increase in allocation (excluding supplemental flow-through)

60. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov IDEA Part B Maintenance of Effort Allowable Reduction: If IDEA B allocation exceeds prior year allocation, applicant may treat as local funds up to 50% of the difference Must spend on qualifying Elementary and Secondary Education Act (ESEA) activities or Early Intervening Services (EIS) Not available to applicants that are not meeting FAPE (determined by OPI)

61. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Allowable Reduction Example FY10 IDEA, Part B Grant:$150,000 FY09 IDEA, Part B Grant:$100,000 Difference:$ 50,000 x 50% Allowable reduction:$ 25,000 FY09 MOE expenditures:$ 80,000 Allowable reduction:$ 25,000 FY10 MOE requirement:$ 55,000

62. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Allowable Reduction…..Effect on Budget FY10 IDEA-B Grant:$150,000 FY09 IDEA-B Grant:$100,000 Difference:$ 50,000 x 50% Allowable reduction:$ 25,000 FY09 MOE expenditures:$ 80,000 Allowable reduction:$ 25,000 FY10 MOE requirement:$ 55,000 FY10 Special Ed Budget: IDEA Grant$150,000 State/Local$ 55,000 Total$205,000 FY09 Special Ed Budget: IDEA Grant$100,000 State/Local$ 80,000 Total$180,000

63. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Allowable Reduction….Spending Requirements FY10 IDEA-B Grant:$150,000 FY09 IDEA-B Grant:$100,000 Difference:$ 50,000 x 50% Allowable reduction:$ 25,000 FY09 MOE expenditures:$ 80,000 Allowable reduction:$ 25,000 FY10 MOE requirement:$ 55,000 Must spend on ESEA activities or EIS

64. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov IDEA Part B Maintenance of Effort Determining required spending level to maintain effort: Prior year state and local expenditures Less: Allowable Reductions Less: Exceptions = Required state & local spending levels

65. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Similarities between Reversion and MOE Both look at state and local special education expenditures Expenditures are tracked for both via Trustees’ Financial Summary (TFS) Failure to meet requirements results in less special education funds for the district

66. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov REVERSION *STATE Requirement MOE *FEDERAL Requirement Affected fund(s)General (01) Misc Programs (15) Tracked byDistrictDistrict and Coop PurposeEnsure local funds match state dollars (state law) Ensure federal funds are not used to supplant state/local funds Inadequate spending results in Reduced state special ed allowable cost payment in ensuing year Repayment to OPI with local funds and OPI Repays Feds Basis for determination ANB, legislative appropriation (Block Grants) Prior year state and local expenditures

67. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Timeline 2 nd Mon in Sept: TFS due *Taxable Values* November 20: OPI calculates preliminary MOE and notifies schools December 20: Last date for TFS changes January – February: OPI reduces state payment by reversion amount March: OPI reports final MOE status

68. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Basic Concepts for Special Education Budgeting 1.Ensure spending is great enough to: Meet State and Federal Requirements 2.After meeting requirements, promote current and future budget flexibility Accommodate current spending needs Minimize state and local expenditures to reduce future years’ special education spending requirements

69. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Planning Your Special Education Expenditures What about maximizing disproportionate cost reimbursement? Might not be a good idea, because: Reimbursement comes two years after expenditures Only 40% of costs above threshold are reimbursed Could possibly increase MOE requirements in future years…

70. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Disproportionate Costs…..Why Not? General Fund Special Ed Expenditures Dollars FY 08 District SPED Expenditures *Shown by funding source in FY 08* Local $$ State $$ All of these Local $$$ expenditures could have significantly impacted your MOE requirement for FY09

71. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Planning Your Special Education Expenditures 1.Budget enough in General Fund (state and local funds) spending to: Avoid reversion (PBDS) **Impact Aid Fund (CWD Allocation) Maintain effort (Your Records, Program 280) 2.If you still haven’t met MOE requirements: Budget Special Ed tuition (13), transportation (10), retirement (14) expenditures, or fund (82) – if program code 280, it counts toward MOE

72. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Planning Your Special Education Expenditures 3.Exhaust IDEA Grant Purchase special ed supplies first, as allowed Pay salaries, retirement costs as necessary Federal Funds; Will not increase MOE requirement 4.Spend Medicaid reimbursement Will not increase MOE requirement

73. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Planning Your Special Education Expenditures 5. Use General Fund/Impact Aid Fund as necessary for remaining costs: Impact Aid won’t affect MOE General Fund will affect MOE Paying salaries from either fund allows access to the retirement fund (14) for the employer paid benefits, which will increase MOE requirement

74. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Planning Your Special Education Expenditures 17-2-108, MCA. Expenditure of non-general fund money first: “…an office or entity of the executive, legislative, or judicial branch of state government shall apply expenditures against appropriated non-general fund money whenever possible before using general fund appropriations.” See Legislative Auditors Use of Special Education Funds Report (2005) http://www.leg.mt.gov/content/Publications/Audit/Report/05P-01B.pdf

75. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Reversion and MOE Guess what? These requirements aren’t going anywhere. They both still apply as they always have. MOE has some flexibility, but reversion does not.

76. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Reversion……Quick Review Coop member districts: Instructional Block Grant +1/3 Instructional Block Grant +1/3 Related Services Block Grant = Minimum Sp Ed Expenditures to Avoid Reversion Non-member districts: Instructional Block Grant +Related Services Block Grant +1/3 Instructional Block Grant +1/3 Related Services Block Grant = Minimum Sp Ed Expenditures to Avoid Reversion Coop Member? Yes: RSBG Paid to Coop No: RSBG paid to and budgeted for at the district level

77. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Reversion….Expenditures that Count Expenditures in the following funds: - General Fund (01) - Metal Mines (24) - State Mining Impact (25)- Impact Aid (26) With these expenditure codes: ProgramFunctionObjects 280 1XXX 1XX - 7XX 28021XX1XX - 7XX 280221X1XX - 7XX 280222X1XX - 7XX 28024XX**1XX - 2XX 28062XX920 * * Only allowed if a certified special education director is employed.

78. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov MOE…….Quick Review *IDEA Part B Funds may not be used to reduce the level of state/local or local fund expenditures for special education below the level of expenditures for the preceding fiscal year.

79. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Maintenance of Effort Chart

80. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov Maintenance of Effort Factors affecting calculation of maintenance of fiscal effort –Allowable exceptions Child count Departure of staff Departure of a high-cost student Long-term purchases end –Required amounts are calculated as a roll up. “Stand-alone districts” Cooperatives Consortiums

81. Montana Office of Public Instruction Denise Juneau, Superintendent opi.mt.gov OPI Support for Budgeting E-Grants –Kate Vatter 444-0864 (kvatter2@mt.gov) available for assistance using the E-Grants applicationkvatter2@mt.gov OPI staff –Dick Trerise 444-4429 (dtrerise@mt.gov) available to answer questions regarding procedural requirements when calculating maintenance of fiscal effort or completing budget applicationsdtrerise@mt.gov