1. Budgeting

2. Objectives Participants will learn: Resources for budgeting Distribution of state special ed funds Projecting state and federal funds Code structure for budgets Developing a budget Monitoring a budget Roll forward and lapsed funds

3. Projecting State Special Education Funds Important documents for getting started: –Student Attendance Accounting Handbook (SAAH) http://www.tea.state.tx.us/school.finance/handbook/index.html http://www.tea.state.tx.us/school.finance/handbook/index.html –Public Education Information Management System (PEIMS) http://www.tea.state.tx.us/peims/standards/index.html –Financial Accountability System Resource (FAR) Guide http://www.tea.state.tx.us/school.finance/audit/resguide12/index.html

4. Student Attendance Accounting Handbook (SAAH) Describes Foundation School Program (FSP) eligibility requirements of all students Contains chapter on special education requirements Describes instructional arrangements Provides information to understand which students are eligible for State special education funds

5. PEIMS Understand data and coding structure Know submission dates (four times a year) and how they relate to budgets and revenue Have system to get accurate data to PEIMS clerk on time

6. Getting Started with Budgeting Chart – Distribution of State Funds for Students Receiving Special Education (handout) District data will impact –Number of students by instructional arrangement –Adjusted allotment –Attendance –Days of instruction for students

7. DISTRIBUTION OF STATE FUNDS FOR STUDENTS RECEIVING SPECIAL EDUCATION Example: Funds Generated by One Student if Adjusted Allotment (AA) = $3,000 Instructional Arrangement HmbndResrce*SpeechHospitalVACOff Home Campus Resident C & T Mainstrm (ADA) (A) Days Present 180 (B) Average Hours per Day 12.8590.254.55.54.255.56 (C) Total Contact Hours [A x B] 180514.62458109907659901,080 (D) Days Taught x 6 1,080 (E) FTE [C / D] 0.16670.47650.04170.75000.91670.70830.91671.0000 (F) Funding Weight 53532.32.741.1 (G) Weighted FTE [E x F] 0.83331.42950.20832.25002.10831.91253.66671.1000 (H) AA 3,000 (I) Sp Ed Funds Generated [G x H] 2,5004,2896256,7506,3255,73811,0003,300 (J) ADA of This Student 1.0000 (K) Sp Ed FTE [from E] 0.16670.47650.04170.75000.91670.70830.91670.0000 (L) Regular Program ADA [J-K] 0.83330.52350.95830.25000.08330.29170.08331.0000 (M) AA 3,000 (N) Reg Ed Funds Generated [L x M] 2,5001,5712,8757502508752503,000 (O) Total Funds Generated [I + N] 5,0005,8603,5007,5006,5756,61311,2506,300 * Same for self-contained, mild/moderate/severe, regular campus

8. Summary of Finances Includes two projections for State special education funds –LPE Legislative Payment Estimate –DPE District Planning Estimate Funds flow to LEAs based on these projections Be cautious! View district Summary of Finances at this site: http://www.tea.state.tx.us/school.finance/funding/sofweb7.html

9. Projecting Federal Special Education Funds Tentative entitlements – approximately May Use previous year’s maximum entitlements if projection needed earlier –May want to reduce or if losing students or maintaining numbers of students –Population and poverty amounts calculated annually Maximum entitlements always unknown until approximately February

10. Partnering with Business Office Know Business office paper work process Who gets what paper work Who can provide copies of budgets When is best time to get up-to-date budgets What business office expects Who is paid from each special education budget

11. Partnering with Business Office Include business office timelines in special ed written procedures Always meet timelines/deadlines Know everyone’s role in budgeting State and Federal special education funds Every director’s role in budgeting will vary depending on the district

12. Financial Accountability System Resource (FAR) Guide Provides coding structure for budget Review handout with budget codes FAR Guide available at this site: http://www.tea.state.tx.us/school.finance/audit/resguide12/index.html

13. Financial Accountability System Resource (FAR) Guide Accounting (budget) codes Code structure Basic system code composition Function codes Object codes

15. Ready To Start Budgeting First things first... Budget personnel first Meet with staff and stakeholders to develop budget for remaining funds and new personnel Use surveys, demographic data, and student achievement data to help budget for priorities Budget for the unexpected

16. Prior End-of-Year Budgets Review previous year’s budgets to get a feel for current year budget –Less likely to forget to budget for expenditure –Gives indication on continuing expenditures that must be budgeted

17. State Special Education Funds Budget for... 15% indirect funds (sometimes referred to administrative cost) (TAC 105.11) If SSA, budget for centralized costs –Determine budget for centralized costs –Have process to determine how much each district pays –Each member district must budget 85% of State special education funds for direct services (TAC 89.1125)

18. Local Special Education Funds Local special education funds Funds district contributes over and above state special education funds Use for special education expenditures not allowed from state and federal special education funds When reducing these funds, be aware these funds can impact MOE significantly

19. Federal Special Education Funds Budget for... Residential set aside –25% of tentative base entitlement of IDEA-B Formula Private school proportionate share http://www.tea.state.tx.us/special.ed/private/psguide.pdf Early intervening services (EIS) –Up to 15% of IDEA-B Formula maximum

20. Federal Special Education Funds Budget for... Schoolwide program (if applicable) Related services to maximize Medicaid reimbursement Federal indirect cost

21. Which Budget To Use Use the following to help decide where to budget expenditures –Allowables and unallowables for state and federal funds –Previous budgets –Funding pyramid of fund sources

22. Laws, Rules, Regulations Budgeting Funds Excess cost of serving students with disabilities (34 CFR §300.184) Early intervening services (34 CFR § 300.226 ) Federal Special Education Funds Services over/above what is funded with state/local funds Must be spent on the excess cost of serving students with disabilities (34 CFR §300.184) At least 85% must be spent for services for students with disabilities (TEC §42.151(h), TAC §89.1125 and TAC §105.11) State Special Education Block Grant Special services, materials, supplies, and equipment directly related to the development and implementation of IEPs not ordinarily purchased for the regular classroom. Generated by all students enrolled in the district (TEC §42.003) Foundation School Program (FSP) Services, materials, supplies, and equipment provided to all students Maintenance of Effort (34 CFR §203) Local Funds LEA may not spend less from local funds below the level for the preceding fiscal year to meet MOE.

23. Supplement vs. Supplant Special education funds must be used to supplement and increase the level of federal, state, and local funds expended for special education and related services provided to children with disabilities and in no case to supplant those federal, state, and local funds (34 § CFR 300.162)

24. Budgeting Cycles FUNDBUDGETING CYCLE IDEA-B Formula/IDEA-B Formula (Deaf)7/1 through 6/30 IDEA-B Preschool/IDEA-B Preschool (Deaf)7/1 through 6/30 IDEA-B Discretionary7/1 through 8/31 State Deaf9/1 through 8/31 IDEA-B Deaf-Blind Discretionary10/1 through 9/30 IDEA-D Deaf-Blind10/1 through 9/30 IDEA-C Early Intervention (Deaf)7/1 through 9/30 State Special Education Block GrantLEA fiscal year

25. Flow of Funds State special education funds Summary of finances No application Federal special education funds WebSAS application due no later than first business day in September Submit expenditure reports for reimbursement

26. Monitor Budget Develop a written process –Who does what, i.e. you, secretary, staff –Who has authority to spend funds, approve expenditures, etc. Maintain NOGAs and TEA award letters Know when to amend budgets –Match local budget to WebSAS/eGrants budget –Monitor emails for auto-communications regarding application status in WebSAS/eGrants –Review budgets on regular basis Prevent lapsed funds

27. Lapsed Funds Department of Education (USDE) views Lapsed Funds as a significant risk factor Lapsed Funds and large Roll Forward amounts could indicate: –Lack of programmatic and financial planning –Lack of internal controls over obligations –Inability to liquidate obligations in a timely manner –Poor financial systems –Poor cash management practices

28. Resources –Student Attendance Accounting Handbook (SAAH) http://www.tea.state.tx.us/school.finance/handbook/index.html –Public Education Information Management System (PEIMS) http://www.tea.state.tx.us/peims/standards/index.html –Financial Accountability System Resource (FAR) Guide http://www.tea.state.tx.us/school.finance/audit/resguide12/index.html –WebSAS Administrators Guide http://www.tea.state.tx.us/special.ed/funding/pdf/admin08.pdf

29. Summary During this module, participants learned: Resources for budgeting Distribution of state special ed funds Projecting state and federal funds Code structure for budgets Developing a budget Monitoring a budget Roll forward and lapsed funds