1. The New Act 16 and Its Effect on Your Special Education Funding October 28, 2014 1

2. Special Education Funding Act 3 of 2013 authorized Funding Commission Recommendations issued in December 2013 Formula for distribution of NEW special education dollars Focused on directing dollars to districts based mostly on the number of students and the costs of providing special education services 2

3. Special Education Funding Commission’s recommendations for school district formula passed as part of Act 126 of 2014 (charter school changes were not enacted) $20 million increase in special education line item in 2014-15 budget is distributed pursuant this new formula 3

4. Three categories based on student costs Category 1: < $25,000/year Category 2: $25,000-$49,999/year Category 3: $50,000 and up/year 4 Act 126- Weighted Student Count Weights are assigned to each cost category Category 1: 1.51 Category 2: 3.77 Category 3: 7.46

5. Act 126- Formula Adjustments Adjustments for the following factors are made to reflect the cost and ability of a district to provide special education services: – Market value/personal income aid ratio (3 yr avg) – Equalized millage multiplier (3 yr avg) Multiplier is based upon 70 th percentile state avg EqM 5

6. Act 126- Formula Adjustments – Small, rural LEA factor (sparsity/size ratio) 40% sparsity-SD ADMs per sq mile vs. state avg ADMs per sq mile 60% size-SD 3 yr avg ADMs vs. state 3 year avg ADMs Adjustment only if the total is above the 70 th percentile 6

7. Act 126 Formula 7 MV/PI Aid Ratio Equalized Millage Multiplier Category 1: Student Count X Weight Category 2: Student Count X Weight Category 3: Student Count X Weight Total Weighted Student Count Small, Rural School District Factor Total Weighted Student Count District Total District Total to Prorate

8. Act 126 Formula Weighted student count drives the formula and distribution of additional dollars to districts Each district’s student count for each cost category will be based upon Act 16 reporting (2014-15 subsidy is based on 2012-13 Act 16 data) 8 Category 1: Student Count X Weight Category 2: Student Count X Weight Category 3: Student Count X Weight Total Weighted Student Count

9. Act 16 of 2000 Section 1372(8) of the Public School Code requires reporting of the aggregate number of special education students in the following cost ranges: – $25,000-$50,000 – $50,000-$75,000 – Above $75,000 9

10. Act 16 of 2000 10 Worksheet included the following account codes to determine the total cost of each special education student. 1200 Special Education Instruction 2240 Computer Assisted Instruction Svs. 2100 Pupil Personnel (Supervise Special Ed) 2260 Instruction & Curriculum Dev. Svs. 2123 Appraisal Service (Assessing students) 2270 Instruction Staff Dev. Svcs. 2126 Placement Services 2350 Legal Services 2140 Psychological Services 2380 Office of Principal Services 2142 Psychological Testing Services 2420 Medical Services 2150 Speech Pathology & Audio Services 2440 Nursing Services 2151 Supervision Speech Path and Audio 2700 Transportation Services 2160 Social Work Services 2834 Staff Development

11. Data was required to be reported to PDE by December 31 each year. Data compiled into an annual report provided to the General Assembly. Overall, reports generally over 90% of special education students cost under $25,000. 11 Act 16 of 2000

12. Act 16 Changes Now required to report information through PIMS (PIMS Collection 1 timeline) Now required to choose a cost category for every special education student: – $0-$24,999 – $25,000-$49,999 – $50,000-$74,999 – $75,000 and up 12

13. Act 16 Changes PDE guidance indicates that the following instructional costs per student should be considered: – Classroom teacher (prorated) – Classroom aids (prorated) – Para-professional/one-to-one aid (total) – “General education as it applies to special education services” (prorated 1100s) 13

14. Act 16 Changes PDE also indicates that the following related services and equipment costs per student should be included: – Specialized transportation – Speech group (prorated) – Individual services (OT, PT, vision, hearing, orientation, speech and mobility services) (total) – One-to-one nurse (total) – Para-professional, one-to-one aid (total) – Specialized equipment cost (total) 14

15. Act 16 Changes No need to cost out every student per our discussions with PDE – Focus on high cost students, everyone else falls into the under $25,000 category Dramatic increases in students assigned to the higher categories may trigger review Bottom line: do it how you’ve done it before (adding prorated 1100s) 15

16. PDE Contact Questions can be emailed to: ra-edseact16@pa.gov Contact the Bureau of Special Education at: 717-783-6134 16

17. Questions and Answers 17