5841-S2 AMS BRAN MIEL 002
2SSB 5841 - S AMD 159
By Senator Brandland
ADOPTED 3/9/2007
On page 6, after line 24, insert the following:
"New Section. Sec. 5. A new section is added to 28A.155 RCW to read as follows:
(1) To the extent necessary, funds shall be made available for
safety net awards for districts with demonstrated needs for special
education funding beyond the amounts provided through the special
education funding formula. If safety net awards exceed the amount
appropriated, then the superintendent shall expend all available
federal discretionary funds necessary to meet this need. Safety net
funds shall be awarded by the state safety net oversight committee
subject to the following conditions and limitations:
(a) The committee shall consider additional funds for districts
that can convincingly demonstrate that all legitimate expenditures for
special education exceed all available revenues from state funding
formulas. In the determination of need, the committee shall also
consider additional available revenues from federal sources.
Differences in program costs attributable to district philosophy,
service delivery choice, or accounting practices are not a legitimate
basis for safety net awards.
(b) The committee shall then consider the extraordinary high cost
needs of one or more individual special education students. Differences
in costs attributable to district philosophy, service delivery choice,
or accounting practices are not a legitimate basis for safety net
awards.
(c) The committee shall then consider extraordinary costs
associated with communities that draw a larger number of families with
children in need of special education services.
(d) The maximum allowable indirect cost for calculating safety net
eligibility may not exceed the federal restricted indirect cost rate
for the district plus one percent.
(e) Safety net awards shall be adjusted based on the percent of
potential medicaid eligible students billed as calculated by the
superintendent in accordance with chapter 318, Laws of 1999.
(f) Safety net awards must be adjusted for any audit findings or
exceptions related to special education funding.
(2) The superintendent of public instruction may adopt such rules
and procedures as are necessary to administer the special education
funding and safety net award process. Prior to revising any standards,
procedures, or rules, the superintendent shall consult with the office
of financial management and the fiscal committees of the legislature.
In adopting and revising the rules, the superintendent shall ensure the
application process to access safety net funding is streamlined,
timelines for submission are not in conflict, feedback to school
districts is timely and provides sufficient information to allow school
districts to know what they need to do to correct any deficiencies in
their safety net application, and that there is consistency between
awards approved by school districts and by application period. The
office of the superintendent of public instruction shall also provide
technical assistance to school districts to assist them in preparing
and submitting their special education safety net application.
(3) On an annual basis, the superintendent shall survey districts
regarding their satisfaction with the safety net process and consider
feedback to improve the safety net process. Each year by December 1st,
the superintendent shall prepare and submit a report to the office of
financial management and the appropriate policy and fiscal committees
of the legislature that summarizes the survey results and changes made
to the safety net process as a result of the school district feedback.
(4) The safety net oversight committee appointed by the
superintendent of public instruction shall consist of:
(a) One staff from the office of superintendent of public instruction;
(b) Staff of the office of the state auditor who shall be nonvoting
members of the committee; and
(c) One or more representatives from school districts or educational
service districts knowledgeable of special education programs and
funding.
NEW SECTION. Sec. 6.(1) In addition to the responsibilities in
section 5 of this act, the state special education safety net oversight
committee, with the assistance of the office of the superintendent of
public instruction, shall conduct further evaluation of issues raised
in the recently completed review of the special education excess cost
accounting procedures by the office of the superintendent of public
instruction and the 2006 report of the joint legislative audit and
review committee report on the accounting of special education excess
costs. Specifically, the state special education safety net oversight
committee shall evaluate options for modifying or replacing the current
accounting methodology in place for the 2005-06 school year in a way
that better reflects the special education program funding and
spending. By November 1, 2008, the oversight committee shall submit a
report to the office of financial management and the appropriate policy
and fiscal committees of the legislature outlining the options for
replacing the current excess cost method. One of the options will be
based on, to the maximum extent appropriate, a full cost accounting.
(2) This section expires June 30, 2009."
Renumber the sections consecutively and correct any internal references accordingly.
SSB 5841 - S AMD 159
By Senator Brandland
ADOPTED 3/9/2007
On page 1, line 3 of the title, after "28A.150 RCW", insert "adding new sections to chapter 28A.155;"
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Effect of amendment: Establishes a new safety net category for school districts that attract a large number of special education students. Requires OSPI to review and streamline the application process to access safety net funds. Requires OSPI to provide technical assistance to school districts and annually survey school districts regarding improvement to the process. Requires the safety net oversight committee to study the excess cost accounting method and explore options for a possible replacement, including an option that reflects the full amount of special education funding.