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The New Act 16 and Its Effect on Your Special Education Funding

The New Act 16 and Its Effect on Your Special Education Funding. October 28, 2014. Special Education Funding. Act 3 of 2013 authorized Funding Commission Recommendations issued in December 2013 F ormula for distribution of NEW special education dollars

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The New Act 16 and Its Effect on Your Special Education Funding

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  1. The New Act 16 and Its Effect on Your Special Education Funding October 28, 2014

  2. Special Education Funding Act 3 of 2013 authorized Funding Commission Recommendations issued in December 2013 Formula for distribution of NEW special education dollars Focused on directing dollars to districts based mostly on the number of students and the costs of providing special education services

  3. Special Education Funding Commission’s recommendations for school district formula passed as part of Act 126 of 2014 (charter school changes were not enacted) $20 million increase in special education line item in 2014-15 budget is distributed pursuant this new formula

  4. Act 126- Weighted Student Count • Weights are assigned to each cost category • Category 1: 1.51 • Category 2: 3.77 • Category 3: 7.46 • Three categories based on student costs • Category 1: < $25,000/year • Category 2: $25,000-$49,999/year • Category 3: $50,000 and up/year

  5. Act 126-Formula Adjustments • Adjustments for the following factors are made to reflect the cost and ability of a district to provide special education services: • Market value/personal income aid ratio (3 yravg) • Equalized millage multiplier (3 yravg) • Multiplier is based upon 70th percentile state avgEqM

  6. Act 126-Formula Adjustments • Small, rural LEA factor (sparsity/size ratio) • 40% sparsity-SD ADMs per sq mile vs. state avg ADMs per sq mile • 60% size-SD 3 yravg ADMs vs. state 3 year avg ADMs • Adjustment only if the total is above the 70th percentile

  7. Act 126 Formula Category 2: Student Count X Weight Category 3: Student Count X Weight Category 1: Student Count X Weight Total Weighted Student Count Small, Rural School District Factor Total Weighted Student Count Total Weighted Student Count District Total Equalized Millage Multiplier MV/PI Aid Ratio District Total District Total to Prorate

  8. Act 126 Formula Category 2: Student Count X Weight Category 3: Student Count X Weight Category 1: Student Count X Weight Total Weighted Student Count Weighted student count drives the formula and distribution of additional dollars to districts Each district’s student count for each cost category will be based upon Act 16 reporting (2014-15 subsidy is based on 2012-13 Act 16 data)

  9. Act 16 of 2000 • Section 1372(8) of the Public School Code requires reporting of the aggregate number of special education students in the following cost ranges: • $25,000-$50,000 • $50,000-$75,000 • Above $75,000

  10. Act 16 of 2000 Worksheet included the following account codes to determine the total cost of each special education student.

  11. Act 16 of 2000 Data was required to be reported to PDE by December 31 each year. Data compiled into an annual report provided to the General Assembly. Overall, reports generally over 90% of special education students cost under $25,000.

  12. Act 16 Changes • Now required to report information through PIMS (PIMS Collection 1 timeline) • Now required to choose a cost category for every special education student: • $0-$24,999 • $25,000-$49,999 • $50,000-$74,999 • $75,000 and up

  13. Act 16 Changes • PDE guidance indicates that the following instructional costs per student should be considered: • Classroom teacher (prorated) • Classroom aids (prorated) • Para-professional/one-to-one aid (total) • “General education as it applies to special education services” (prorated 1100s)

  14. Act 16 Changes • PDE also indicates that the following related services and equipment costs per student should be included: • Specialized transportation • Speech group (prorated) • Individual services (OT, PT, vision, hearing, orientation, speech and mobility services) (total) • One-to-one nurse (total) • Para-professional, one-to-one aid (total) • Specialized equipment cost (total)

  15. Act 16 Changes • No need to cost out every student per our discussions with PDE • Focus on high cost students, everyone else falls into the under $25,000 category • Dramatic increases in students assigned to the higher categories may trigger review • Bottom line: do it how you’ve done it before (adding prorated 1100s)

  16. PDE Contact Questions can be emailed to: ra-edseact16@pa.gov Contact the Bureau of Special Education at: 717-783-6134

  17. Questions and Answers

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