1. FY 14 Special Education Funding Issues Illinois ASBO Annual Conference May 16, 2013 Illinois State Board of Education Funding and Disbursement Services Tim Imler, Division Administrator Division Phone: 217/782-5256

2. FY 13 State Backlog Report FY 14 Budget Summary FY 14 State Special Education Funding FY 14 Federal Special Education Funding FY 13 Year End Expenditure Report Changes Presentation Outline

3. FY 14 Budget Summary Gov Quinn Proposed Cut of $308M from FY 13 Levels General State Aid  Gov Request $4.1B (-$150.4M) – 82% ($5,017 FL)  ISBE Request $5B (+$745M) – 100% ($6,119 FL) Regular Transportation (-$145.6M) – 19% Ill Free Lunch & Breakfast (-$5.3M) – 20% or.03 per meal Early Childhood – Level Funding $300M

4. State Special Education What is a Mandated Categorical Program? In general, a mandated categorical program and the funds appropriated for it are earmarked and mandated by statute for a particular purpose or population and may be used for that purpose or population only.

5. FY 14 State Special Education FY 14 ISBE Board Request Sp Ed MCAT (+$5.6M)  Sp Ed Personnel (+$300K)  Funding for Children Requiring Sp Ed Services (-$11.1M)  Sp Ed Private Tuition (+$12.2M)  Sp Ed Summer School (+$400K)  Sp Ed Orphanage (-$6M)  Sp Ed Transportation (+$9.8M)

6. FY 14 State Special Education Funding for Children Requiring Sp Ed Services (-$11.1M) Appropriation Request – 17.5% of Foundation Level X Dec 1 Count Less Private Facility and Orphanage students. School YearState CountChange 2007-2008322,683-1.18% 2008-2009318,461-1.31% 2009-2010312,533-1.86% 2010-2011302,830-3.10% 2011-2012 292,844-3.30% 2012-13 (est.)292,061-0.27%

7. State Special Education Maintenance of Effort 34 CFR 300.163(a), the State must not reduce the amount of State financial support for special education and related services for children with disabilities, or otherwise made available because of the excess costs of educating those children, below the amount of that support for the preceding fiscal year. “State financial support” includes ALL special education funds made available by ISBE but also appropriations for the Departments of Human Services and Juvenile Justice. Due to decreasing appropriations for special education, ISBE maintains effort via special education pupil per capita expenditures.

8. FY 14 Federal Special Education Sequestration  Automatic cuts effective March 1, 2013  Approx. 5% across the board cuts to Federal programs or $2.5B from USDE Budget  Impacts “advance funded” 2013 Federal programs (i.e. ISBE FY 14 Awards)

9. FY 14 Federal Special Education IDEA PART B FUNDS FY 2013FY 2014 Flow Through $505,651,259$480.9M (est.) (-$24.6M) Preschool $17,308,047 $16.4M (est.) (-$865K)

10. FY 14 Federal Special Education  Excess Cost (Supplement not Supplant) still in effect  No relief to local MOE requirement  No MOE waiver to ISBE available 300.204 Exceptions to Maintenance of Effort  Voluntary departure, retirement of special education personnel who are replaced by qualified, lower-salaried staff  A decrease in the enrollment of children with disabilities  Termination of the obligation of the agency for a child that was exceptionally costly as determined by the SEA  Termination of costly expenditures for long-term purchases such as the acquisition of equipment or the construction of school facilities

11. FY 2013 Year End Expenditure Reporting Changes Summary of Single Audit finding: Agency must implement controls to collect and report accurate liabilities under Generally Accepted Accounting Principles (GAAP)

12. Year End Expenditure Reporting Changes  Impacts all State and Federal Grant projects (e.g. Early Childhood, IDEA Part B, Title I etc.)  Additional reporting required if project end date is extended past June 30.  Examine need for an end date extension:  NOT needed for staff on 12 month salary schedule  NOT needed to pay obligations incurred prior to June 30  IS needed for new activities and obligations incurred July 1 or later (e.g. Summer School, Professional Development)

13. Year End Expenditure Reporting Changes Obligations If the obligation is for:The obligation is made: a)acquisition of real or personal property. -on the date on which a written commitment to acquire the property has been made. b) personal services by an employee.-when the service has been performed. c) personal services by a contractor (not an employee). -on the date on which a binding written commitment to obtain the services has been made. d) performance of work other than a personal service. -on the date on which a binding written commitment to obtain the work has been made. e) public utility service.-when the service is received. f) travel.-when the travel is taken. g) rental of real or personal property.-when the property is used. h) a pre-agreement cost that was properly approved by the State. -when the pre-agreement costs were approved by the State.

14. Year End Expenditure Reporting Changes IDEA Part B Grant Example  End Date August 31  June 30 Cumulative Cash Basis Expenditures $1,000  June 30 Outstanding Obligation Reported $800  July 31 Cumulative Expenditures $1,400  New Reporting Requirement How much of the $400 expended in July was for payments of obligations/activities prior to June 30 as opposed to payments for obligations/activities July 1 or later?

15. Year End Expenditure Reporting Changes $400 has been expended since June 30. Please provide a split $400 between Lines A and B

16. Funding and Disbursement Services Phone: (217) 782-5256 Fax: (217) 782-3910