PROPOSED RULES
PUBLIC INSTRUCTION
Original Notice.
Preproposal statement of inquiry was filed as WSR 00-19-024.
Title of Rule: WAC 392-140-600 through 392-140-685, state special education safety net funding.
Purpose: To reflect policy changes made by the State Safety Net Oversight Committee.
Statutory Authority for Adoption: RCW 28A.150.290.
Statute Being Implemented: Section 507(7), chapter 309, Laws of 1999.
Summary: Proposed changes will remove one application type and replace with a new application type. Numerous other changes will provide better information to applicants about types of applications, order of application, criteria of application, and worksheets used in application process.
Reasons Supporting Proposal: Changes are needed to clarify order of application process.
Name of Agency Personnel Responsible for Drafting: Sara Cundy, Office of Superintendent of Public Instruction, (360) 753-2298; Implementation: Allen H. Jones, Office of Superintendent of Public Instruction, (360) 753-6708; and Enforcement: Michael L. Bigelow, Office of Superintendent of Public Instruction, (360) 753-1718.
Name of Proponent: Office of Superintendent of Public Instruction, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: Changes to implement the 1999-2001 state Operating Appropriations Act:
| Requirement that superintendent expend all available federal discretionary funds necessary to meet the extraordinary needs of individuals special education students. |
| Addition of other factors application type and elimination of demographics application type. | |
| Requirement that applicant apply for award types successively as follows: Maintenance, percentage, high-cost individual, other factors. Additional requirement that applicant apply in each successive type after eligibility is exhausted in prior type. | |
| Requirement that safety net applicant use the state adopted excess cost method of accounting consistently on Worksheet "A." |
Proposal Changes the Following Existing Rules: As described above.
No small business economic impact statement has been prepared under chapter 19.85 RCW. No small business impacts have been identified.
RCW 34.05.328 does not apply to this rule adoption.
Hearing Location: Bryan Conference Room, Old Capitol Building, P.O. Box 47200, Olympia, WA 98504-7200, on January 23, 2001, at 9 a.m.
Assistance for Persons with Disabilities: Contact Sheila Emery by January 9, 2001.
Submit Written Comments to: Legal Services, Office of Superintendent of Public Instruction, P.O. Box 47200, 600 South Washington Street, Olympia, WA 98504-7200, fax (360) 753-4201, by January 22, 2001.
Date of Intended Adoption: January 24, 2001.
December 15, 2000
Dr. Terry Bergeson
Superintendent of
Public Instruction
OTS-4549.1
AMENDATORY SECTION(Amending WSR 00-03-015, filed 1/7/00,
effective 2/7/00)
WAC 392-140-600
Special education safety net -- Applicable
provisions.
The provisions of WAC 392-140-600 through
392-140-685 apply to the determination of safety net allocations
of state special education moneys and Individuals with
Disabilities Education Act (IDEA) federal discretionary moneys
for the 2000-01 school year and thereafter.
[Statutory Authority: RCW 28A.150.290(2) and 1999 c 309 507(7). 00-03-015, 392-140-600, filed 1/7/00, effective 2/7/00. Statutory Authority: RCW 28A.150.290 and 1995 2nd sp.s. c 18 as modified by 1996 c 283. 96-19-095 (Order 96-15), 392-140-600, filed 9/18/96, effective 10/19/96.]
(1) School districts may make application for safety net
funding on ((the basis of)) one or more of the ((following:))
four application types described below. Applications will be
considered and awards made in the order shown until the
district's eligibility is exhausted.
(a) Maintenance of effort (state revenue only) hereafter referred to as MOESR. State safety net funding may be requested when a district shows a MOESR loss calculated by the superintendent of public instruction pursuant to WAC 392-140-620.
(b) ((Special characteristics and costs.)) Students above
the funded percentage hereafter referred to as percentage. State
safety net funding may be requested ((by a school district with
special education costs of providing services that are
reasonable, but differ significantly from the assumptions
contained in the state special education funding formula provided
that the applicant school district meets the standards of WAC 392-140-613 and can demonstrate, pursuant to WAC 392-140-625
either of the following:
(i) The)) if district's actual resident special education
enrollment exceeds the district's funded resident special
education enrollment, the district ((has adopted)) is
implementing a plan of action to contain or eliminate any
unnecessary, duplicative, or ineffective enrollment practices,
and all available funding, including state, federal, and local if
provided in the past, is insufficient to meet the expenditure
level necessary for special education((; or
(ii) The district's resident special education enrollment percentage is equal to the funded special education enrollment percentage and the district has incurred an adverse change in the demographics of its resident special education enrollment, and all available funding, including state, federal, and local if provided in the past, is insufficient to meet the expenditure level necessary for special education)).
(c) High-cost individual student. A school district may submit applications for federal safety net funding for high-cost individual students meeting the standards in WAC 392-140-616.
(d) Factors other than students above the funded level or high-cost individual students hereafter referred to as other factors. State safety net funding may be requested by a school district with unfunded special education costs due to factors beyond the district's control and not attributable to district philosophy or service delivery style. The applicant district must meet standards of WAC 392-140-613 and 392-140-625.
(2) The school district making application for safety net funding shall certify that:
(a) The application complies with the respective safety net application standards of WAC 392-140-610, 392-140-613, or 392-140-616;
(b) The application provides true and complete information to the best of the school district's knowledge; and
(c) The district understands that safety net funding is not an entitlement, is subject to adjustment and recovery, may not be available in future years, state safety net funding must be expended in program 21 which impacts the amount that must be maintained for the federal maintenance of effort test, and federal safety net funding must be expended in program 24, and federal Medicaid has been billed for all services to eligible students.
(3) Worksheets included with the application shall demonstrate the need for safety net funding. School districts are encouraged and may be required to submit additional information designed to assist the state oversight committee in analyzing the application.
(a) MOESR applications pursuant to subsection (1)(a) of this section do not require any worksheets. Applications for MOESR shall include certification of standards and criteria described in WAC 392-140-610.
(b) ((Special characteristics and costs)) Percentage
applications pursuant to subsection (1)(b)(((ii))) of this
section require completion of ((the narrative and))
worksheet((s)) "A" described in WAC 392-140-625, certification of
standards and criteria pursuant to WAC 392-140-613 and percentage
application narrative.
(c) High-cost individual student applications shall include
((completed budget forms SPI F-1000B and SPI E-795B, and))
worksheets "A" and "C" and summary published in the safety net
application, and certification of standards and criteria pursuant
to WAC 392-140-616.
(d) Other factors applications pursuant to subsection (1)(d) of this section require completion of application narrative, worksheet "A" described in WAC 392-140-625, and certification of standards and criteria described in WAC 392-140-613.
[Statutory Authority: RCW 28A.150.290(2) and 1999 c 309 507(7). 00-03-015, 392-140-605, filed 1/7/00, effective 2/7/00. Statutory Authority: RCW 28A.150.290 and 1997 c 149 507(8). 98-08-013 (Order 98-05), 392-140-605, filed 3/18/98, effective 4/18/98. Statutory Authority: RCW 28A.150.290 and 1995 2nd sp.s. c 18 as modified by 1996 c 283. 96-19-095 (Order 96-15), 392-140-605, filed 9/18/96, effective 10/19/96.]
(1) The IEPs comply with federal and state procedural requirements.
(2) The delivery of specially designed instruction complies with state standards (regularly scheduled teaching or training activities provided or designed by special education qualified staff).
(3) Areas for the provision of special education services
conform with areas of need identified in the students evaluation
made pursuant to WAC ((392-172-152)) 392-172-111.
(4) The state oversight committee determines:
(a) There are no unresolved state audit examination findings related to special education which are material in nature;
(b) There are no unresolved state child count verification findings which are material in nature; and
(c) All corrections to state enrollment reporting, required for resolution of (a) and (b) of this subsection, are completed.
[Statutory Authority: RCW 28A.150.290 and 1995 2nd sp.s. c 18 as modified by 1996 c 283. 96-19-095 (Order 96-15), 392-140-609, filed 9/18/96, effective 10/19/96.]
(1) IEPs are appropriate and are properly and efficiently prepared and formulated.
(2) The district is making reasonable effort to provide appropriate services for students in need of special education utilizing state funding generated by the basic education apportionment and special education funding formulas.
(3) The district's special education services are operated in a reasonably efficient manner and the district has adopted a plan of action to contain or eliminate any unnecessary, duplicative, or inefficient practices.
(4) Indirect costs included for purposes of determining safety net allocations do not exceed the allowable percent for the federal special education program plus one percent.
(5) Any available federal funding is insufficient to address the additional needs.
(6) The costs of any supplemental contracts are not included for purposes of determining safety net allocations. Supplemental contracts are those contracts made pursuant to RCW 28A.400.200(4) excluding extended school year contracts (ESY) required by an IEP.
(7) The costs of any summer school instruction are not included for purposes of making safety net determinations excluding extended school year contracts (ESY) required by an IEP.
[Statutory Authority: RCW 28A.150.290(2) and 1999 c 309 507(7). 00-03-015, 392-140-613, filed 1/7/00, effective 2/7/00. Statutory Authority: RCW 28A.150.290 and 1995 2nd sp.s. c 18 as modified by 1996 c 283. 96-19-095 (Order 96-15), 392-140-613, filed 9/18/96, effective 10/19/96.]
(1) The IEP for the eligible special education student is appropriate, and properly and efficiently prepared and formulated.
(2) All of the following criteria apply to the high-cost individual student:
(a) Costs eligible for safety net consideration must be direct expenditures for services required in the IEP.
(b) In order to deliver appropriate special education to the
student, the district must be providing services which incur
additional costs which exceed available district annual average
per-pupil revenues, including state, federal and local revenues,
by seven thousand dollars. This threshold amount shall be
adjusted ((downward by the portion of the year for which the
individual student was actually enrolled)) pro rata for students
not counted or expected to be counted for special education
services on all eight enrollment count dates (October through
May). For example, for a student served and reported for only
((one-half the year)) six of the eight count dates, the threshold
amount shall be reduced ((by one-half)) to three-quarters of the
full amount. The state safety net oversight committee may set a
lower threshold for small school districts.
(c) The total cost of educational services must exceed any carryover of federal flow-through special education funding as of August 31 of the prior school year.
(d) The cost of providing special education services, as directed in the IEP, for this student would be detrimental to the school district's ability to provide necessary services to the other students being provided special education in the district.
(3) The state safety net oversight committee shall adapt the high cost individual student application as appropriate for applications prepared by the Washington state school for the blind and the Washington state school for the deaf.
[Statutory Authority: RCW 28A.150.290 and 1997 c 149 507(8). 98-08-013 (Order 98-05), 392-140-616, filed 3/18/98, effective 4/18/98. Statutory Authority: RCW 28A.150.290 and 1995 2nd sp.s. c 18 as modified by 1996 c 283. 96-19-095 (Order 96-15), 392-140-616, filed 9/18/96, effective 10/19/96.]
(1) Applications from districts with actual enrollment
greater than funded enrollment pursuant to WAC 392-140-605
(1)(b)(((i))) must demonstrate, through the application
narrative, that the district ((has adopted)) is implementing a
plan of action to contain or eliminate any unnecessary,
duplicative, or ineffective enrollment practices. The district
shall demonstrate a financial need on worksheet "A" of the
application. Applicants shall cooperate with the special
education program audit team and shall provide the team with any
information required by the team to review and verify
certifications made on the safety net application.
(((2) Applications from districts with actual enrollment
equal to funded enrollment pursuant to WAC 392-140-605 (1)(b)(ii)
must demonstrate, through the application narrative and on
application worksheet "A" and "B," an adverse change in resident
special education enrollment characteristics and program costs.
For initial awards, the district must demonstrate adverse change
since the prior school year. For continuing awards, the district
must demonstrate continued adverse change.))
(a) The application narrative completed by the school
district shall provide any information and explanations related
to ((special enrollment characteristics)) students above the
funded percentage as required in the published instructions.
(b) Application worksheet "A" shall demonstrate a financial
need by displaying the school district's special education
expenditures, revenues, and special education enrollments for the
prior and current school years. ((Application worksheet "B"
shall display changes in staff services and staff-to-ratios
between the prior and current school years.))
(c) Cost differences between the current and prior school years shall be explained in the application narrative. The application narrative shall detail cost differences in services to students which occurred between the current school year and the prior school year. Such details shall include costs and savings associated with each change in services.
(d) A fiscal need shall be demonstrated through the
application narrative, on application worksheet((s)) "A" ((and
"B,")) and other information available to the state oversight
committee.
(2) Applications for other factors pursuant to WAC 392-140-605 (1)(d) must demonstrate, through application narrative and on application worksheet "A," financial need caused by factors other than the presence of students above the funded percentage or high-cost individual student(s).
(a) The narrative shall identify causal factors beyond the district's control and not attributable to the district philosophy or service delivery style, and:
(i) Outline each causal factor asserted in the application;
(ii) Provide a clear explanation of the impact of each factor to the district in terms of number and/or severity of students;
(iii) Quantify the safety net funding need due to the factor. Show the assumptions and calculations used to arrive at the dollar amount of unfunded costs attributable to each factor.
(b) Provide a copy or explanation of any action plan the district has adopted to contain or eliminate any unnecessary, duplicative, or inefficient practices pursuant to WAC 392-140-613.
(c) If the district received an award in a prior year, describe the program, prior year costs, and compare and contrast to the current year program and costs.
[Statutory Authority: RCW 28A.150.290(2) and 1999 c 309 507(7). 00-03-015, 392-140-625, filed 1/7/00, effective 2/7/00. Statutory Authority: RCW 28A.150.290 and 1997 c 149 507(8). 98-08-013 (Order 98-05), 392-140-625, filed 3/18/98, effective 4/18/98. Statutory Authority: RCW 28A.150.290 and 1995 2nd sp.s. c 18 as modified by 1996 c 283. 96-19-095 (Order 96-15), 392-140-625, filed 9/18/96, effective 10/19/96.]
(1) Application worksheet "A" shall demonstrate a fiscal
need in excess of ((the sum of)):
(a) ((All current school year safety net awards to the
district)) The district's maximum eligibility for MOESR ((or
special characteristics and costs));
(b) Any previous safety net awards for the current school year; and
(c) All other available revenue for special education, including all carryover of federal special education revenue.
(2) Awards ((for special characteristics and costs pursuant
to WAC 392-140-605 (1)(b)(ii) and high cost individual awards))
shall not exceed the amount of need demonstrated on the worksheet
"A."
(3) Worksheets submitted with safety net applications are to
reflect ((an)) the state adopted excess cost ((basis)) method of
accounting, consistently applied for both years presented. ((The
district may be required to describe the district's excess cost
methodology.))
(4) The safety net oversight committee may revise the district's worksheet "A" submitted for errors or omissions.
(5) The school district shall provide additional information as requested by the state oversight committee.
(6) After the close of the school year, the safety net oversight committee may review the worksheet "A" used to determine need for a district's award against the actual final school year enrollments, revenues, and expenditures reported by the district. Based upon the results of this review:
(a) The safety net allocation for the school year may be adjusted or recovered; or
(b) If the committee finds that a portion of the safety net allocation was not needed to balance revenues and expenditures, the committee may consider that portion of the allocation available to meet the needs of the ensuing school year.
[Statutory Authority: RCW 28A.150.290(2) and 1999 c 309 507(7). 00-03-015, 392-140-626, filed 1/7/00, effective 2/7/00.]
(1) The special education safety net allocation shall be the smaller of:
(a) The amount requested by the school district; or
(b) The amount authorized by the state oversight committee.
(2) If the district requests and the oversight committee approves the "full" allocation permitted by a state formula, then the allocation shall be adjusted periodically during the year and again in January after the close of the school year to reflect the amount determined under the formula.
(3) Special education safety net allocations of state moneys
for ((special characteristics)) percentage and other factors
applicants under WAC 392-140-605 (1)(b) and (d) shall be prorated
if total year-to-date state allocations for all safety net
applications under WAC 392-140-605 (1)(a) ((and)), (b), and (d)
exceed the authorized appropriation for that school year.
(4) Special education safety net allocations for high-cost
individual students under WAC 392-140-605 (1)(c) shall ((first))
use appropriated federal moneys. ((If federal moneys are
insufficient, state moneys may be used if provided for this
purpose in the state Operating Appropriations Act, otherwise
high-cost individual student allocations shall be prorated as
needed to stay within the authorized federal appropriation.)) If
safety net awards to meet the extraordinary needs of one or more
individual special education students exceed the general
fund -- federal appropriation, the superintendent shall expend all
available federal discretionary funds necessary to meet this
need. General fund -- state funds shall not be expended for this
purpose.
[Statutory Authority: RCW 28A.150.290(2) and 1999 c 309 507(7). 00-03-015, 392-140-660, filed 1/7/00, effective 2/7/00. Statutory Authority: RCW 28A.150.290 and 1997 c 149 507(8). 98-08-013 (Order 98-05), 392-140-660, filed 3/18/98, effective 4/18/98. Statutory Authority: RCW 28A.150.290 and 1995 2nd sp.s. c 18 as modified by 1996 c 283. 96-19-095 (Order 96-15), 392-140-660, filed 9/18/96, effective 10/19/96.]
(1) For those districts not maximizing Medicaid billing for
special education students under ((chapter 318, Laws of 1999))
RCW 74.09.5255, special education safety net allocations shall be
reduced by the estimated potential additional incentive payments
for the school year if the district maximized Medicaid incentive
payments. Potential additional incentive payments shall be
estimated by the superintendent of public instruction based on
the district's percent of Medicaid eligible students billed and a
state-wide average incentive payment per student determined by
the superintendent in October of the school year. The average
incentive payment per student shall be determined using the prior
school year's state-wide Medicaid billing data assuming fifty
percent incentive payments for all school districts. The
superintendent of public instruction shall update Medicaid
billing adjustments to safety net allocations periodically during
the school year and again in January following the close of the
school year.
(2) Special education safety net allocations for a school district may be adjusted to reflect changes in factors for which additional or revised information becomes available after the awarding of the initial safety net allocation. This means:
(a) MOESR awards for the "full" amount shall be increased, reduced, or nullified when a recalculation pursuant to WAC 392-140-620 results in a change in the amount previously calculated pursuant to WAC 392-140-620.
(b) ((Special characteristics and costs)) Percentage awards
for the full amount under WAC 392-140-605 (1)(b)(((i))) shall be
increased, reduced, or nullified when the district's enrollment
or state funding factors change.
(c) ((Special characteristics and costs)) Percentage and
other factors awards may be reduced or nullified when the school
district's actual revenues and expenditures for the school year
differ significantly from the estimates on which the initial
safety net award was based.
(d) A school district's safety net award may be adjusted by the safety net oversight committee based on the results of the review conducted by the special education program audit team pursuant to WAC 392-140-630.
(3) Allocations of state moneys ((for special
characteristics applicants)) under WAC 392-140-605 (1)(b) and (d)
shall be prorated if total state allocations for all safety net
applications under WAC 392-140-605 (1)(a) ((and)), (b), and (d)
exceed the authorized appropriation for that school year.
Allocations shall be restored to full funding if additional
appropriation authority becomes available.
[Statutory Authority: RCW 28A.150.290(2) and 1999 c 309 507(7). 00-03-015, 392-140-675, filed 1/7/00, effective 2/7/00. Statutory Authority: RCW 28A.150.290 and 1997 c 149 507(8). 98-08-013 (Order 98-05), 392-140-675, filed 3/18/98, effective 4/18/98. Statutory Authority: RCW 28A.150.290 and 1995 2nd sp.s. c 18 as modified by 1996 c 283. 96-19-095 (Order 96-15), 392-140-675, filed 9/18/96, effective 10/19/96.]