Funding

Distribution of State Special Education Funds to LEAs

Average Daily Attendance (ADA)

Full Time Equivalents (FTEs)

Use of State Special Education Funds

Special Education Grant

Accountability for Funds

Use of Funds for Personnel

Use of Funds for Materials, Supplies, and Equipment

Use of Funds for Contract Services

Use of Funds for Travel

Maintenance of Effort (MOE)

Requirements for Compliance

Exception to MOE

Early Intervening Services

Adjustment to Local Fiscal Efforts

Excess Costs

Requirements

Excess Costs Calculation

Distribution of IDEA Part B Formula Funds to LEAs

Use of IDEA Part B Formula Amounts Permissive

Use of IDEA Part B Formula Amounts in General

Methods and Payments

Private Schools

Use of Public Benefits and Insurance

Use of Private Insurance

Use of IDEA B Funds

Use of IDEA Part B Funds for Title I Schoolwide Programs

Funding Conditions

Meeting Other Part B Requirements

Proportionate Share Funding for Parentally-Placed Private School Child

Consultation

Proportionate Share Calculation

Limitations

Coordination of Funds to Purchase

Instructional Materials

Distribution of IDEA Part B Preschool Funds to LEAs

Base Payment Allocations

Use of Best Data

Allocation of Remaining Funds

Reallocation of Funds

Limitations

Distribution of High Cost Risk Pool Funds

Effective Dates

High Need Child with a Disability

Reservation of Funds

Direct Costs

Restrictions

Eligibility Criteria

Funding Mechanism for Distribution of the High Cost Fund

Funds Awarded

Use of Funds Awarded

Use of Funds for Contract Services Including Residential Placements

Costs for Residential Placement

Funding Mechanism for Residential Placement

Non-Public Day Schools

Funding for Noneducational Services

Noneducational Community-Based Support Services

Noneducational Public Agencies

Shared Services Arrangements

Funding

Distribution of State Special Education Funds to LEAs

Authorities: Texas Education Code; 19 T.A.C. Chapters 89, 129

Average Daily Attendance (ADA)

19 TAC 89.1121(a)(b); 89.129.21

Procedures for counting the ADA of children receiving special education services in various instructional settings will be developed by the Commissioner of Education and included in the daily register for pupil attendance accounting.

State special education funds will be distributed to local educational agencies (LEA) on the basis of ADA of full time equivalents (FTEs) of eligible children served in accordance with the Requirements for Student Attendance Accounting for State Funding Purposes.

Full Time Equivalents (FTEs)

19 TAC 89.112(c)(d)(e)(f)(h); 89.1065(9); TEC 42.151(a)(b)(c)(f)(k)(l)

The special education attendance will be converted to contact hours by instructional arrangement and then to FTEs.

The FTE for each instructional arrangement is multiplied by the LEA's adjusted basic allotment and then multiplied by the weight for the instructional arrangement.

Contact hours for any one child receiving special education services may not exceed six hours per day or 30 hours per week for funding purposes.

The total contact hours generated per week will be divided by 30 to determine the FTEs.

Special education FTEs generated will be deducted from the local education agency's ADA for purposes of the regular education allotment.

Funds generated by FTEs in one instructional arrangement may be spent on the overall special education program and are not limited to the instructional arrangement which generated the funds.

For each FTE child in ADA in a special education program and in an instructional arrangement other than a mainstream instructional arrangement, the LEA is entitled to an annual allotment equal to the adjusted basic allotment multiplied by a weight determined according to instructional arrangement as follows:

·  Funding for the mainstream special education instructional arrangement will be based on the ADA of the children in the arrangement multiplied by the adjusted basic allotment/adjusted allotment (ABA/AA) and the 1.1 weight; but

·  The attendance will not be converted to contact hours/FTEs as with the other instructional arrangements.

For funding purposes the contact hours credited per day for the student in the resource room, self-contained, mild and moderate; and self-contained, severe, instructional arrangements may not exceed the average of the state-wide total contact hours credited per day for those threeinstructional arrangements in the 1992-1993 school year.

For funding purposes the number of contact hours credited per day for each student in the off home campus instructional arrangement may not exceed the contact hours credited per day for the multidistrict class instructional arrangement in the 1992-1993 school year.

·  For each FTE child in ADA in a special education program in an instructional arrangement other than a mainstream instructional arrangement, the LEA is entitled to an annual allotment equal to the adjusted basic allotment multiplied by a weight determined according to instructional arrangement as follows:

o  Homebound 5.0;

o  Hospital class 3.0;

o  Speech therapy 5.0;

o  Resource room 3.0;

o  Self-contained, mild and moderate, regular campus 3.0;

o  Self-contained, severe, regular campus 3.0;

o  Off home campus 2.7;

o  Nonpublic day school 1.7; and

o  Vocational adjustment class 2.3.

A special instructional arrangement for children with disabilities residing in care and treatment facilities, whose parents or guardians do not reside in the LEA providing education services must be established under the rules of the State Board of Education (SBOE):

·  The funding weight for other than state schools will be 4.0 for those children who receive their education service on an LEA campus; but

·  The funding weight for children with disabilities residing in state schools will be 2.8.

The LEA that provides an extended school year (ESY) program is entitled to receive funds up to 75 percent of the applicable allotment for each FTE child in ADA, multiplied by the amount designated for the child's instructional arrangement for each day the program is provided and divided by the number of days in the minimum school year:

·  The LEA may use funds received for ESY only in providing an extended year program; and

·  LEAs are not eligible for reimbursement for ESY services provided to children for reasons other than those set forth in the Extended School Year (ESY) Services guidelines.

Children from birth through age two with a visual or auditory impairment or both who are provided services by the LEA according to an individual family services plan (IFSP) will be enrolled on the home or regional day school campus and will be considered eligible for ADA on the same basis as other children receiving special education services.

Children who are at least three but younger than 22 years of age on September 1 of the current scholastic year who participate in the regional day school program for the deaf (RDSPD) may be counted as part of the local education agency's ADA if they receive instruction from the LEA's basic program for at least 50 percent of the school day.

The Commissioner will withhold an amount specified in the General Appropriations Act and distribute that amount to LEAs that provide education solely to students confined to or educated in hospitals:

·  This program is required only in LEAs in which the program is financed by funds distributed under this subsection and any other funds available for the program; and

·  After deducting the amount withheld under this subsection from the total amount appropriated for special education, the Commissioner will reduce each LEA's allotment proportionately and allocate funds to each LEA accordingly.

A special education fund balance may be carried over to the next fiscal year but must be expended on the special education program in the subsequent year. State special education carryover funds cannot be used for administrative costs.

LEA Specific Information:

Insert local information here


Use of State Special Education Funds

Authorities: 20 U.S.C. § 1412; 34 C.F.R. Part 300; Texas Education Code; 19 T.A.C. Chapter 89, 105

Special Education Grant

TEC 29.018(a)(b)(1)(2)(c)(d)(e); TEC 29.018(c)

Special education grants will be made available to local educational agencies (LEAs) from funds appropriated, federal funds,or any other fundsavailable, to assist LEAs in covering the cost of educatingchildren with disabilities.

TheLEA is eligible to apply for a special education grant if:

·  The LEA does not receive sufficient funds, including statefunds and federal funds, forthechild with disabilities to pay for the special education services provided to the child; or

·  The LEA does not receive sufficient funds, including state funds and federal funds, for allchildren with disabilities in the LEA to pay for the special education services provided to the children.

TheLEA that applies for a special education grant must provide a report comparing the state and federal funds received by the LEA forchildren with disabilities and the expenses incurred by the LEA in providing special education services to children with disabilities.

The cost of training personnel to provide special education servicesto the child with disabilitiesare expenses that may be included by the LEA when applying for a special education grant.

The LEA that receives a special education grant must educatechildren with disabilities in the least restrictive environmentthat is appropriate to meet thechildren's educational needs.

Accountability for Funds

TAC 89.63; 89.1121(d)(e); TEC 42.151(e)(h) CFR 300.114(b); 20 USC 1412(a)(5)(A)

The receipt of special education funds must be contingent upon the operation of an approved comprehensive special education program in accordance with state and federal laws and regulations.

State special education funds, other than an indirect cost allotment, must be used in the special education program.

No LEA may divert special education funds for other purposes, with the exception of administrative costs relating to maximum indirect cost allowable on certain FoundationSchool Program allotments.

Funds generated by full-time equivalents in one instructional arrangement may be spent on the overall special education program and are not limited to the instructional arrangement which generated the funds.

The LEA must maintain separate accountability for the total state special education program fund within the general fund.

The State Board of Education (SBOE) by rule will prescribe the qualifications an instructional arrangement must meet in order to be funded as a particular instructional arrangement:

In prescribing the qualifications that a mainstream instructional arrangement must meet, the SBOE will establish requirements that children with disabilities and their teachers receive the direct, indirect, and support services that are necessary to enrich the regular classroom and enable success.

A special education fund balance may be carried over to the next fiscal year, and the balance must be expended on the special education program in the subsequent year.

State special education carry-over funds cannot be used for administrative costs.

Use of Funds for Personnel

TAC 89.1125(a)

Persons paid from special education funds must be assigned to instructional or other duties in the special education program and/or to provide support services to the regular education program in order for children with disabilities to be included in the regular program with the following limitations:

Support services must include, but not be limited to, collaborative planning, co-teaching, small group instruction with children in special education and regular education, direct instruction to children in special education, or other support services determined necessary by the admission, review, and dismissal (ARD) committee for an appropriate program for the child with disabilities;

Assignments may include duties supportive to school operations equivalent to those assigned to regular education personnel;

Personnel assigned to provide support services to the regular education program as stated may be fully funded from special education funds; and

If personnel are assigned to special education on less than a full-time basis, only that portion of time for which the personnel are assigned to children with disabilities may be paid from state special education funds.

Use of Funds for Materials, Supplies, and Equipment

TAC 89.1125(d)

State special education funds may be used for special materials, supplies, and equipment which are directly related to the development and implementation of IEPs of children and which are not ordinarily purchased for the regular classroom.

Office and routine classroom supplies are not allowable.

The use of special equipment must comply with the Administration of Equipmentguidelines.

Use of Funds for Contract Services

TAC 89.1125(e)

State special education funds may be used to contract with consultants to provide staff development, program planning and evaluation, instructional services, assessments, and related services to children with disabilities.

Use of Funds for Travel

TAC 89.1125(g)(f)

State special education funds may be used to pay staff travel to perform services directly related to the education of eligible children with disabilities.

Funds may also be used to pay travel of staff (including administrators, general education teachers, and special education teachers and service providers) to attend staff development meetings for the purpose of improving performance in assigned positions directly related to the education of eligible children with disabilities.

Thepurpose for attending such staff development meetings must not include time spent in performing functions relating to the operation of professional organizations.

In accordance with federal regulations, funds may also be used to pay for the joint training of parents and special education, related services, and general education personnel.

To use state special education funds for transportation to and from a residential facility, the LEA must comply with the Use of Funds for Contract Services Including Residential Placementsguidelines.

LEA Specific Information:

Insert local information here

Maintenance of Effort (MOE)

Authorities: 20 U.S.C. § 1413; 34 C.F.R. Part 300; Appendix D to Part 300 - Maintenance of Effort and Early Intervening Services.34 CFR 300.203(a); 20 USC 1413(a)(2)(A)(iii)

Funds provided the LEA under IDEA Part B must not be used to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds below the level of those expenditures for the preceding fiscal year.

Requirements for Compliance

34 CFR 300.154(g)(2); 300.203(b)(2); 20 USC 1413(a)(2)(A)

An LEA complies withMOE requirements if the LEA:

·  Budgets for the education of children with disabilities from local funds or a combination of local and state funds;

·  Spends funds for the same purpose and from the same source as the most recent prior year for which information is available; and

·  Ensures that the amount of local funds budgeted for the education of children with disabilitiesis at least the same, either in total or per capita, as the amountthe LEAspent for that purpose in the most recent fiscal year for which information is available.