Date Adopted: December 2, 2003.

     Purpose: These rules implement a limit on the indirect costs charged by a school district to vocational secondary programs to 15% of the combined basic and vocational education state funding.

     Citation of Existing Rules Affected by this Order: Amending chapter 392-121 WAC, Finance -- General apportionment.

     Statutory Authority for Adoption: Section 502(2) of ESSB 6387.

     Other Authority: RCW 28A.150.290.

      Adopted under notice filed as WSR 03-21-141 on November 3 [October 21], 2003.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 6, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 6, Amended 0, Repealed 0.

     Effective Date of Rule: Thirty-one days after filing.

December 11, 2003

Dr. Terry Bergeson

Superintendent of

Public Instruction

OTS-5778.1

VOCATIONAL INDIRECT COST LIMIT
NEW SECTION
WAC 392-121-570   Vocational indirect cost limit -- Applicable code provisions -- Purpose -- Effective date.   (1) WAC 392-121-570 through 392-121-578 define the fifteen percent limit on indirect cost charges to school district state-funded vocational-secondary programs as required by the Biennial Operating Appropriations Act. These rules do not apply to federal vocational funding which is governed by federal policies.

     (2) The purpose of these sections is to assure that state allocations for vocational education are expended by school districts to support state vocational programs. The minimum levels defined here are not to be construed as recommended expenditure levels.

     (3) These sections are effective for the 2002-03 school year and thereafter.

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     (1) "Program 31" means the vocational-basic-state program as defined in the Accounting Manual for Public School Districts in the State of Washington.

     (2) "Basic allocation for vocational students" means the amount of money generated by a school district's vocational full-time equivalent enrollment in the general apportionment formula using the state funding formula factors including the grade 4-12 staffing ratios without enhancement, and using the district's average certificated instructional staff mix factor for program 31 staff from the district's S-275 personnel report.

     (3) "Enhancement allocation for vocational students" means the additional money above the basic allocation for vocational students generated by a school district's vocational full-time equivalent enrollment as a result of the enhanced state vocational staffing ratio and enhanced nonemployee related cost allocation for vocational students. This enhancement shall be calculated using the district's average certificated instructional staff mix factor for program 31.

     (4) "Vocational running start allocation" means the amount generated in the general apportionment formula by a school district's running start students enrolled in vocational courses in a community or technical college pursuant to chapter 392-169 WAC.

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     (1) Eighty-five percent of the total basic and vocational enhancement allocations for vocational students;

     (2) Ninety-three percent of the vocational running start allocation; plus

     (3) Any carryover from the prior school year allowed under WAC 392-121-578.

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     (2) If a district's program 31 expenditures are less than the minimum, then the superintendent shall notify the district of the results of the calculation including any potential recovery of state funding.

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     (2) Grounds for review and adjustment include:

     (a) Errors in the calculation; or

     (b) Inaccurate school district data used in the calculation.

     (3) A district requesting review and adjustment due to inaccurate school district data shall submit corrected data pursuant to the superintendent's instructions.

     (4) The superintendent of public instruction shall correct any errors in the calculations or revise the school district data used in the calculations as appropriate.

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     (2) If the district's program 31 expenditures are below the minimum program 31 expenditure amount, the district shall be allowed to carry over into the ensuing school year an amount equal to up to ten percent of the minimum expenditure amount excluding any carryover from the prior school year.

     (3) The superintendent of public instruction shall recover from the district's general apportionment allocation as a prior year adjustment an amount equal to the lesser of the district's enhancement allocation for vocational students or the following amount:

     (a) The district's minimum program 31 expenditures; minus

     (b) The district's program 31 expenditures plus any allowable carryover.

     (2) Recoveries made pursuant to this section shall be adjusted after the January apportionment calculation if revised enrollment, staff mix, or expenditure data submitted by the district and accepted by the superintendent of public instruction materially affects the district's recovery amount.

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     Reviser's note: The typographical error in the above section occurred in the copy filed by the agency and appears in the Register pursuant to the requirements of RCW 34.08.040.