Background on Funding for Alternative Education

Background on Funding for Alternative Education

and Actions of the Department of Education Related to

Proposed Amendment to OAR 581-023-0006

February 12, 2007

Background:

Students in public schools may attend an alternative education program to meet their educational “needs and interests.” Parents or guardians may request that their child attend an alternative education program, but the final placement decision is made by the resident school district. Alternative programs may be designed to be flexible with regard to “environment, time, structure and pedagogy.” Therefore, alternative programs may vary widely from a very highly structured military-type program to an unstructured, student-led “exploratory learning” environment. In Oregon, alternative programs may be “public alternative programs,” sponsored and operated by public school districts or “private alternative programs,” created by private organizations, registered with ODE, and operated under a contract with public school districts. All alternative programs are expected to provide students with “adequate instruction in state common curriculum goals and academic content standards to meet state benchmarks and performance standards.”

Policy History:

The BethelSchool District in 1995 was interested in serving home schooled students in a public school setting and being able to receive state school funds for those students. ODE sent a letter to Bethelin May 1995 that set out advice regarding establishing and funding a district program to serve home schooled students. The letter advised the district that the funding mechanism in Oregon Administrative Rule (OAR) 581-023-0006 (7) for alternative education programs was appropriate for use to claim reimbursement for home schooled students participating in a program specifically designed for home schooled students. The letter further stated that students attending programs outside of their resident school districts must have the approval of both the resident and non-resident school district, which is consistent with the process for inter-district transfer agreements.

During the summer of 2005 the ODE began work with legal counsel from the Department of Justice on a series of executive memoranda discussing issues relating to alternative education, including programs for home schooled students. These memoranda were written in response to a review of alternative education programs, including programs for home schooled students, that was conducted by ODE. The review raisedmany questions,including the type of courses offered and the method used for obtaining state school funds.

• June 2, 2005 – ODE Executive Memoranda 032-2004-05

The June 2005 memo explained the residency requirements, including the specific requirements for interdistrict transfer agreements for students who are not residents of the district where the program is located. Further, the memo discussed the function of enrolling in a school district as necessary to establish a district’s legal obligation to a student as well as the district’s legal authority to claim reimbursement from the state school fund for the student.

• September 8, 2005 – ODE Executive Memoranda 004-2005-06

The September 2005 memo offered further explanation of the residency and enrollment process, including the requirement for placement of a student in an alternative education program. The memo also specifically rescinded the advice given to the BethelSchool District in the May 19, 1995 letter.

• May 19, 2006 – ODE Executive Memoranda 022-2005-06

The May 2006 memo restated the method to use to claim reimbursement from the state school fund for alternative education programs and for non-public students attending public school part-time as set out in OAR 581-023-0006. This message was consistent with the rescission of the May 19, 2005 letter to the BethelSchool District.

• July 21, 2006 – ODE Executive Memoranda 003-2006-07

Acting on advice from legal counsel, the May 2006 memorandum was replaced with the July 21, 2006 memorandum, which restated the department’s intent to propose amendments to OAR 581-023-0006 to clearly establish the appropriate process for claiming reimbursement for home schooled students attending public school part-time. It also stated the department’s intent to adopt the rule to be effective retroactively to July 1, 2006, consistent with the May 19, 2006 memo.

The department has held a public hearing on August 16, 2006 on the proposed revisions to the rule. As a result of discussion with the state board in September 2006, department staff and legal counsel proposed a second set of revisions and held another public hearing on the new revisions in January 2007.

Policy Discussion:

While the issues identified in the series of memoranda referenced above and the underlying understanding of the meaning of both the existing and the revised rule have not changed, staff’s understanding of the policy basis for the rule has evolved and settled. The funding mechanism established in OAR 581-023-0006 (7) was intended to allow school districts to respond to individual students, enrolled in the district, whose particular diagnosis required a non-traditional instructional program. Such a non-traditional program under the mechanism of (7) could be designed and funded to allow a school district to “compress” instruction to a degree based on the size of the instructional group. The assumption is as well that the student is enrolled in and receiving instruction toward achievement of the state’s and district’s comprehensive curriculum.

The programs such as the Bethel Home Source have, at least in part, established their programs based on the 1995 letter from ODE. Those programs were established specifically to serve home schooled students. The 1995 letter, even though written specifically to the BethelSchool District, has been distributed widely across the state and has been cited as the basis for the development of similar programs for home schooled students.

Many of the courses that have been provided to students in programs for home schooled students, funded under the enhanced alternative funding formula, appear to be more enrichment than part of a comprehensive core education. The following examples are taken from the 2005-2006 Home Source course catalog.

• PHY2600—KARATE COLORED BELT

These novice, Intermediate, and Advanced Karate classes include continued skill development in Kihon(fundamental skills), Kata (solo practice), Bunkai (self-defense), Kumite (sparring), and Life Skills(character building). Participation is year-round. Instructor permission required or previous class levelcompleted. All participants must have a signed Eugene School of Karate waiver on file before participation. These are available at the Karate School Office. Students must commit to either Monday/Wednesday orTuesday/Thursday. **Optional: $20 test fee and $10 belt fee at the end of each quarter.

Grades K-12 Max: 15

• PHY3100—SOCCER FOR MUNCHKINS

What a kick! Soccer is one of the easiest team sports for children to learn. This class will focus on skills.

Class will be held in the gym at Willow Creek Sports Club due to Oregon weather. Dress appropriately, thegym can be chilly. The goals of this class are to learn soccer skills, learn teamwork and sportsmanship, andhave fun! Students need to have non-marking shoes. No outdoor soccer shoes are allowed.

Grades: K-2 Max 15

• MUS1300—GUITAR FOR BEGINNERS

This class will focus on basic guitar techniques. Chords, scales and rhythm will be taught as well as posture,correct fingering and note reading. Students will learn the language of music to facilitate the learningprocess. The class will all learn ensemble pieces, however the opportunity for solo performance is apossibility. A text book is required (inexpensive) and students will receive handouts on a weekly basis. Atheme of the week will be taught each class so students can learn from specific examples in the music world. Examples from past and present will be used to demonstrate ideas. Requirements: Nylon stringed guitar (ifstudent already has steel strings that is acceptable). Picks for the guitarshould be Tourtose green.

Grades: 3-8 Max: 15

• MIS1850—CHESS

This chess class is recommended for any beginning chess student. The class will focus on general chess ideas. Students will study the stages of a chess game, value of the pieces and the rules.

Grades: K-12 Max: 15

• MIS2450—KNITTING FUNDAMENTALS

Learning to knit gives students a real life way to practice their math and reading skills. Developing fine motor skills such as finger dexterity is another benefit that will help in many different aspects of students’ lives, plus the creative excitement of making something. Learning new stitches with each project, students will be knitting coasters, dishcloths, cell phone socks, scarves, hats, etc. They will explore the differences between yarns available today through a fiber arts study. In addition students will make cords for purses with a rope-making tool. Acrylic yarn is available in class. Supplies needed: worsted weight cotton yarn in light colors to begin, pair of #8 knitting needles.

Grades: 3-12 Max: 15

• PHY2700—ICE SKATING

Beginner and advanced beginner instruction will be provided in ice skating. Classes are grouped by level to accommodate needs and abilities of skating students. Skaters will learn the basics of stroking and crossovers in both forward and backward directions. There will be instruction on elementary maneuvers including basic spins, jumps, and gliding moves. Skaters have the option of trying basic hockey skills. A skill progression test is administered at the end of the session and progression level ribbons are awarded. Skates are provided. Dress warmly!

Grades: K-12 Max: 30

Questions and Answers:

1. Question: Can school districts continue to provide services to home and private schooled students?

Answer: Yes. School districts may offer home and private schooled students the opportunity to participate in courses offered at the public school. The school district may be reimbursed for those courses under the funding provision of OAR 581-023-0006 (6), which is limited to reimbursement at the large group rate.

2. Question: Why are programs like HomeSource hurt by this rule?

Answer: Home Source is financed through SSF as an alternative education program. Yet, Home Source should not be considered an “alternative education program” because:

• It does not provide a comprehensive public education nor does it provide a coordinated component of a student’s total comprehensive public education as required by law.
• It serves students who have not been assessed by a public school as needing an alternative instructional setting.Many Home Source students have never been enrolled in public school, have never failed to thrive in a regular school setting, and therefore have not been assessed as needing an alternative education program.
• Under the alternative education funding rules, courses are reimbursed based on the size of the instructional group. Home Source was using the small and intermediate reimbursement rate. See the chart on page 6.

3. Question: But this program has been using SSF for 10 years to fund this program. How is that possible if this is not permitted under the law?

Answer: In 1995, the founders of Home Source met with the superintendent of their school district (Bethel) to see if there was a way of funding Home Source with SSF. An ODE employee wrote a letter to Bethel stating that the program could be considered an alternative education program. The rules were never re-written to support this change in interpretation, and the letter was circulated as ODE policy when it was not. This error was not discovered until 2004. Steps have been taken since then to correct the mistake.

4. Question: How can you change the interpretation of the law and OAR with no change in the statute?

Answer: The current interpretation is aligned with state law and OAR. The prior interpretation was an error. Once the ODE becomes aware of its own error, it must correct it as soon as possible. The ODE does not have the authority to break the law.

5. Question: Isn’t it a good idea to offer home schooled students options and alternatives to either full-time home schooling or full-time public schooling?

Answer: Under current law, home schooled students may opt to take a class (or more) at their local school. Schools may be reimbursed for this instruction on an hourly basis, at the large group rate. See the chart on page 6.

6. Question: Doesn’t this rule discriminate against home schooled students?

Answer: No. The erroneous interpretation of the rule for 10 years has favoredhome schooled students. Public school students do not have guaranteed access to one-on-one lessons on such subjects as knitting, horseback riding, etc and cannot claim more SSF for smaller classes under the alternative funding mechanism unless it is to meet an individual student’s identified need. The correct interpretation levels the playing field for all students.

All students have the same opportunity to receive a free public education from their resident public school by enrolling in the public school. The ability to receive enhanced funding for instruction provided in an alternative education program is available to all students who have been identified as requiring an alternative setting and who are enrolled in public schools.

To continue to provide this type and level of service for home schooled studentsposes a significant policy question, one that should be discussed and decided by the Legislature. It also raises questions regarding the appropriate role of a statewide educational system, including whether students who are home schooled are entitled to better education services than those enrolled in their local school, and more basically, can a student be both home and public schooled?

NOTE: In the discussion of the funding issues under 581-023-0006, the more basic question of whether school districts can develop and operate programs exclusively for home schooled students has not been addressed.

Statutory Authority:

The State Superintendent of Public Instruction is responsible for distributing state school funds to school districts according to law. Oregon Revised Statute 327.125 establishes the authority of the State Superintendent and the State Board of Education with respect to the state school fund. The text of the statute follows:

ORS 327.125 -

The Superintendent of Public Instruction shall administer the provisions of ORS 327.006 to 327.133, 327.348, 327.355, 327.357, 327.360 and 327.731. The State Board of Education shall adopt all necessary rules not inconsistent with ORS 327.006 to 327.133, 327.348, 327.355, 327.357, 327.360 and 327.731 to carry into effect the provisions of those statutes. [Amended by 1963 c.570 §8; 1965 c.100 §29; 1989 c.491 §6; 1991 c.780 §17]

Administrative rules are enacted by state agencies to provide direction and detail to statutory language. Oregon Administrative Rule (OAR) 581-023-0006 was adopted to define the process for calculating and allocating to school districts the appropriate portion of the state school fund. That rule includes processes for distributing funds for regular education students as well as for students in alternative education settings. The rule also describes student attendance reporting requirements.

Oregon law permits school districts to provide services to students who are home schooled or who attend private schools and be reimbursed from the state school fund for those services. Generally, districts are reimbursed at the regular classroom rate for the hours of instruction that are provided to the home or private schooled student.

Administrative Rule:

School districts have the option under OAR 581-023-0006 (7) to obtain reimbursement for students in alternative education programs that varies depending on the size of the instructional group – large, intermediate or small group or individual tutoring. The rationale for varying the rate of reimbursement depending on the size of the instructional group is based on the assumption that teachers can “compress” their instruction and cover more material in less time with a small group. The following table sets out an estimate of the impact of the reimbursement for each size of group. For purposes of illustration, this estimate is based on a 36 week school year and a state school fund allocation of $5,000 per student.

Instructional Group / Instructional Group
Size / Equivalent instructional hours per week / Total Instructional hours per year / Amount reimbursed per student per hour
Large group / 16 or more / 30 hours / 1080 hours / $4.63
Intermediate group / 6 to 15 / 22.5 hours / 810 hours / $6.17
Small group / 2 to 5 / 15 hours / 540 hours / $9.26
Individual tutoring / 1 / 5 hours / 180 hours / $27.78

OAR 581-023-0006 (7) states that the state school fund allocation calculated to reflect instructional group size, resulting in an increased hourly reimbursement is limited to students in alternative education programs. The rule also says in section (6) that school districts may obtain reimbursement for “non-public school students” attending public school part time, but that reimbursement is limited to the large group reimbursement rate.

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