School Funding Basics:Special Education &

Circuit Breaker FundingMURSD Regional School CommitteeDecember 5, 2011

Special Education: A Perspective by the

NumbersOver 1 out of every 6 students (17.0%)

across the Commonwealth receives special education services

In the MURSD, that figure is 13.6% (349 students as of 10/1/11)

Free and Appropriate Public Education (FAPE) as defined in the Individuals with Disabilities Education Act (IDEA) guides the level of services

Special Education: A Perspective by the

NumbersSpecial education expenditures involve

classroom teachers, paraprofessionals, service providers (e.g., speech, OT, PT, etc.), assistive technology, summer programming, instructional supplies and materials

A significant portion of the special education budget is allocated for out-of-district placement tuitions (e.g., 36% of the special education budget in FY2010)

District Special Education Expenditures Relative to the Total Budget, FY01-FY10

710 MENDON UPTON A B C D E F G H Special -- In-District Instruction-- - Out-of-District Tuition - Combined Total Education Mass. Public Mass Private Special Ed School Percentage state Fiscal Other Schools and and Out-of- Expenditures Operating of Budget average Year Teaching Instructional Collaboratives State Schools (A+B+C+D) Budget (E as % of F) percentage 2001 1,602,844 182,407 273,742 483,647 2,542,640 12,267,282 20.7 17.2 2002 1,776,930 335,011 391,651 503,536 3,007,128 13,931,841 21.6 17.4 2003 2,105,020 427,633 454,784 656,224 3,643,661 15,534,828 23.5 17.7 2004 2,201,488 445,526 406,339 825,724 3,879,077 17,021,260 22.8 18.6 2005 2,592,929 451,145 459,100 697,196 4,200,370 19,199,737 21.9 18.9 2006 2,746,931 482,981 498,626 751,998 4,480,536 20,705,338 21.6 19.1 2007 3,017,757 530,732 559,552 956,565 5,064,606 22,553,713 22.5 19.4 2008 3,428,542 594,132 551,048 1,147,343 5,721,065 24,984,942 22.9 19.8 2009 3,737,594 538,354 805,945 922,065 6,003,958 24,311,473 24.7 20.1 2010 3,257,764 540,167 796,636 1,302,511 5,897,078 24,927,389 23.7 20.0

Source: Department of Elementary & Secondary Education, Office of School Finance

Out of District Placements

Student needs cannot be serviced in the home public system- identified by the IEP Team

Student may be placed in a state-approved private schools (Chapter 766 Schools) or a public collaborative; day and residential

For FY12- a range: from $32,460 to $281,917; Average is ~$66,000/year

How Services are Funded by the State &

FedsThrough 4 sources: Chapter 70, IDEA

Funds, Circuit Breaker, & MuniMed

Chapter 70/Foundation Budget provides a base for ALL students

IDEA grant funds from the federal government: Minimal relative to costs: (e.g., For FY12- $529,764 in Special Ed Entitlement Grant & $20,404 in Early Childhood grant)

MuniMed reimburses for services for students/families that are Medicaid eligible ($66,921 in FY11)

What is the “Circuit Breaker” Program?

Started in FY04 by the state to provide additional funding for high cost special education students

• By design , it covers only a portion- as there is a threshold for eligibility- which is tied to four times the state average foundation budget per pupil

Circuit Breaker Funding

The original CB Formula is the following:

Net School Spending =

Required Local Contribution + Chapter 70 Aid

CB Reimbursement/student =[Tuition – 4(Avg. Foundation Budget/pupil)] .75

So as an example:

For a student with a $66,000 tuition:

Net School Spending =

Required Local Contribution + Chapter 70 Aid

CB Reimbursement =[$ 66,000 – 4($ 9507)] .75 = $ 20,979

This equates to a 32% reimbursement rate. The local district is also responsible forall transportation costs.

MURSD Circuit Breaker Funding, FY07-FY12

Year # of student

s

Prev. Year’s Tuition

Net Claim

Reimb. Rate

Circuit Breaker Funding

FY07 20 $1,128,030

$495,710 75 % $371,783

FY08 32 $1,558,262

$593,174 75 % $444,881

FY09 26 $1,672,988

$807,464 72 % $581,374

FY10 29 $2,086,816

$1,006,543

42 % $426,189

FY11 36 $2,374,359

$1,019,745

44 % $611,043

FY12 29 $2,483,616

$1,380,804

65 % $897,523

MURSD Out of District Tuitions vs. Circuit Breaker Funding, FY07-12

FY07 FY08 FY09 FY10 FY11 FY12$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$1,558,262

$1,672,988

$2,086,816

$2,374,359 $2,483,616

$2,176,299

$371,783 $444,881

$581,374 $426,189

$611,043

$897,523

Actual Exp

CB Reimb