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

October 28, 2014

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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

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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

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• 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

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Act 126-Weighted Student Count

• Weights are assigned to each cost category• Category 1: 1.51• Category 2: 3.77• Category 3: 7.46

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 yr

avg)– Equalized millage multiplier (3 yr avg)• Multiplier is based upon 70th percentile state avg

EqM

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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 yr avg ADMs vs. state 3 year avg

ADMs• Adjustment only if the total is above the 70th

percentile

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Act 126 Formula

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MV/PI Aid Ratio

Equalized Millage

Multiplier

Category 1:Student Count

X Weight

Category 2:Student Count

X Weight

Category 3:Student Count

X Weight

Total Weighted Student Count

Total Weighted Student Count

Small, Rural School District

Factor

Total Weighted Student Count

District Total

District TotalDistrict

Total to Prorate

Act 126 Formula

• 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)

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Category 1:Student Count

X Weight

Category 2:Student Count

X Weight

Category 3:Student Count

X Weight

Total Weighted Student Count

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

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Act 16 of 2000

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

1200 Special Education Instruction 2240 Computer Assisted Instruction Svs.

2100 Pupil Personnel (Supervise Special Ed) 2260 Instruction & Curriculum Dev. Svs.

2123 Appraisal Service (Assessing students) 2270 Instruction Staff Dev. Svcs.

2126 Placement Services 2350 Legal Services

2140 Psychological Services 2380 Office of Principal Services

2142 Psychological Testing Services 2420 Medical Services

2150 Speech Pathology & Audio Services 2440 Nursing Services

2151 Supervision Speech Path and Audio 2700 Transportation Services

2160 Social Work Services 2834 Staff Development

• 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.

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Act 16 of 2000

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

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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)

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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)

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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)

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PDE Contact

Questions can be emailed to: ra-edseact16@pa.gov

Contact the Bureau of Special Education at:717-783-6134

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Questions and Answers

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