13.0 FISCAL RESOURCES AND REPORTING STANDARDS
Fiscal resources are the means for purchasing and/or obtaining the supplies, materials, equipment, services, and personnel required to provide programs for children and students with disabilities. The district, in providing for the education of children and students with disabilities within its jurisdiction, must have in effect policies, procedures, and programs that are consistent with the State's policies and procedures. Each year the district must present to the Minnesota Department of Education (MDE) information to demonstrate that the amounts provided to the district under IDEA are expended in accordance with state and federal law.
In the following text, application refers to the district's submission of an approved local budget and the annual application for state and federal special education aids. reporting refers to the reports that must be submitted to state and federal agencies, including all supporting documentation as required for an audit.
13.01.01 Local Budget Development and Approval
Prior to July 1 of each year, the board of each district must approve and adopt its revenue and expenditure budgets for the next school year. The budget document so adopted must be considered an expenditure authorizing or appropriations document. No funds shall be expended by any board or district for any purpose in any school year prior to the adoption of the budget document which authorizes that expenditure, or prior to an amendment to the budget document by the board to authorize the expenditure. Expenditures of funds in violation of this subdivision shall be considered unlawful expenditures. Prior to the appropriation of revenue for the next school year in the initial budget, the board shall inform the principal or other responsible administrative authority of each site of the amount of general education and referendum revenue that the Department of Education estimates will be generated by the pupils in attendance at each site. For purposes of this subdivision, a district may adjust the department's estimates for school building openings, school building closings, changes in attendance area boundaries, or other changes in programs or student demographics not reflected in the department's calculations. A district must report to the department any adjustments it makes according to this subdivision in the department's estimates of compensatory revenue generated by the pupils in attendance at each site, and the department must use the adjusted compensatory revenue estimates in preparing the report required under section 123B.76, subdivision 3, paragraph (c).
Minn. Stat. 123B.77, subd. 4
13.01.02 Joint Powers Agreements
The Area Special Education Cooperative (ASEC) is a cooperative of 14 school districts in northwestern Minnesota. The Cooperative was formed in 1969 by a joint powers agreement of local schools to provide a full range of specialized services to children on a district level.
This cooperative is administered by a Board of Directors composed of the superintendents of the 14 school districts. The coop is managed by the director and assistant directors of special education.
13.01.03 Program and Aid Approval
Before June 1 of each year, each district providing special instruction and services to children with a disability must submit to the commissioner an application for approval of these programs and their budgets for the next fiscal year. The application must include an enumeration of the costs proposed as eligible for state aid pursuant to this section of the estimated number and grade level of children with a disability in the district who will receive special instruction and services during the regular school year and in summer school programs during the next fiscal year. the application must also include any other information deemed necessary by the commissioner for the calculation of state aid and for the evaluation of the necessity of the program, the necessity of the personnel to be employed in the program, for determining the amount which the program will receive from grants from federal funds, or special grants from other state sources, and the program's compliance with the rules and standards of the Department of Education. The commissioner may withhold all or any portion of the aid for programs which receive grants from federal funds, or special grants from other state sources.
The commissioner shall review each application to determine whether the program and the personnel to be employed in the program are actually necessary and essential to meet the district's obligation to provide special instruction and services to children with a disability. The commissioner shall not approve aid pursuant to this section for any program or for the salary of any personnel determined to be unnecessary or unessential on the basis of this review.
By August 31 the commissioner shall approve, disapprove, or modify each application, and notify each applying district of the action and of the estimated amount of aid for the programs. The commissioner shall provide procedures for districts to submit additional applications for program and budget approval during the fiscal year, for programs needed to meet any substantial changes in the needs of children with a disability in the district.
The commissioner may modify or withdraw the program aid approval and withhold aid pursuant to this section at any time the commissioner determines that the program does not comply with rules of the Department of Education or that any facts concerning the program or its budget differ from the facts in the district's approved application.
Minn. Stat. 125A, subd.4
13.01.04 Summer School
By March 15 of each year, districts must submit separate applications for program and budget approval for summer school programs. These applications must be reviewed as provided in subdivision 4. By may 1 of each year, the commissioner shall approve, disapprove, or modify the applications and notify the districts of the action and of the estimated amount of aid for the summer school programs.
Minn. Stat. 125A, subd. 6
As a point of clarification, summer school and special education extended school year (ESY) services are two separate activities. ESY services are determined by the student's IEP team and are based on the student meeting ESY criteria. ESY services may be provided through a district's summer school program if those activities meet the specific needs of the student.
The district must provide the state education agency with information necessary for the state to carry out its duties under Part B of the Act, including information relating to the performance of children with disabilities participating in programs carried out under Part B of the Act.
34 C.F.R. 300.211
The district must make available to parents of children with disabilities and to the general public all documents relating to the eligibility of the agency under Part B of the Act.
34 C.F.R. 300.212
The district, in providing for the education of children with disabilities within its jurisdiction, must have in effect policies, procedures, and programs that are consistent with the State policies and procedures established under 300.101 through 300.163 and 300.165 through 300.174.
The district must have on file with the state the policies and procedures described above.
34 C.F.R. 300.201
Amounts provided to the district under Part B of the Act
Must be expended in accordance with the applicable provisions of this part;
Must be used only to pay the excess costs of providing special education and related services to children with disabilities, and
Must be used to supplement State, local and other Federal funds and not to supplant those funds
34 C.F.R. 300.202
Except as provided in 300.204 and300.205, funds provided to a district under Part B of the Act must not be used to reduce the level of expenditures for the education of children with disabilities made by the district from local funds below the level of those expenditures for the preceding fiscal year.
34 C.F.R. 300.203(a)
A district may reduce the level of expenditures by the district below the level of those expenditures for the preceding fiscal year if the reduction is attributable to any of the following:
The voluntary departure, by retirement or otherwise, or departure for just cause, of special education or related services personnel.
A decrease in the enrollment of children with disabilities.
The termination of the obligation of the agency, consistent with this part, to provide a program of special education to a particular child with a disability that is an exceptionally costly program, as determined by the State, because the child:
Has left the jurisdiction of the agency;
Has reached the age at which the obligation of the agency to provide FAPE to the child has terminated; or
No longer needs the program of special education.
The termination of costly expenditures for long-term purchases, such as the acquisition of equipment or the construction of school facilities.
The assumption of cost by the high cost fund operated by the State.
34 C.F.R.300.204
Notwithstanding the provisions of 300.202 and 300.203 or any other provisions of Part B of the Act, an LEA may use funds received under Part B of the Act for any fiscal year to carry out a schoolwide program under section 1114 of the ESEA, except that the amount used in any schoolwide program may not exceed:
The amount received by the LEA under Part B of that Act for the fiscal year; divided by the number of children with disabilities in the jurisdiction of the LEA; and
multiplied by the number of children with disabilities participating in the schoolwide program.
The funds described in paragraph (a) of this section are subject to the following conditions:
The funds must be considered as Federal Part B funds for purposes of the calculations required by 300.202(a)(2) and (a)(3).
Except as provided in paragraph (b) of this section, all other requirements of Part B of the Act must be met by an LEA using Part B funds in accordance with paragraph (a) of this section, including ensuring that children with disabilities in schoolwide program school:
Receive services in accordance with a properly developed IEP; and
Are afforded all of the rights and services guaranteed to children with disabilities under the Act.
34 C.F.R. 300.234
Notwithstanding 300.202, 300.203(a) and 300.162(b) funds provided to an LEA under Part B of the Act may be used for the following activities:
For the costs of special education and related services, and supplementary aids and services, provided in a regular class or other education-related setting to a child with a disability in accordance with the IEP of the child, even if one or more nondisabled children benefit from these services.
To develop and implement coordinated, early intervening educational services system in accordance with 300.226
To establish and implement cost or risk sharing funds, consortia, or cooperatives for the LEA itself, or for LEAs working in a consortium of which the LEA is part, to pay for high cost special education and related services.
An Lea may use funds received under Part B of the Act to purchase appropriate technology for record keeping, data collection, and related case management activities of teachers and related services personnel providing services described in the IEP of children with disabilities, that is needed for the implementation of those case management activities.
34 C.F.R. 300.208
| October 2008 Q & A: Student Absences The Minnesota Department of Education (MDE) Division of Compliance and Assistance developed this document to assist school districts who have raised questions about making determinations regarding student absences. |
The state must pay each district one-half of the sum actually expended by a district, based on mileage, for necessary travel of essential personnel providing home-based or community-based services to children with a disability under age five and their families.
MN Statute 125A.75, sub. 1
The state must pay each district the actual cost incurred in providing instruction and services for a child whose district of residence has been determined by section 125A.17 or 125A.51, paragraph (b), and who is temporarily placed in a state institution, a licensed residential facility, or foster facility for care and treatment. The regular education program at the facility must be an approved program according to section 125A.515.
Upon following the procedure specified by the commissioner, the district may bill the state the actual cost incurred in providing the services including transportation costs and a proportionate amount of capital expenditures and debt service, minus the amount of the basic revenue, as defined in section 126C.10, subdivision 2, of the district for the child and the special education aid, transportation aid, and any other aid earned on behalf of the child. The limit in subdivision 2 applies to aid paid pursuant to this subdivision. To the extent possible, the commissioner shall obtain reimbursement from another state for the cost of serving any child whose parent or guardian resides in that state. The commissioner
may contract with the appropriate authorities of other states to effect reimbursement. All money received from other states must be paid to the state treasury and placed in the general fund.
MN Statute 125A.75, subd. 3
For a pupil who is age 18 through 21 years of age and is receiving special education, the district where the pupil's parents, legal guardian, or conservator lives shall be financially responsible for the cost of the special education program even in those cases where the pupil serves as the parent according to Code of Federal Regulations, Title 34, section 300.20, for due process purposes.
MN R. 3525.0800, subp. 9
Use of State Aid for Personnel
Salaries for essential personnel who are teachers and related services and support services staff members are reimbursable for the following activities:
child find and pupil identification;
necessary short-term indirect or consultative services that are provided in conjunction with regular education prereferral activities to an individual suspected of having a disabling condition to determine whether referrals for evaluation shall be made;
evaluation, progress reporting, and IEP planning for individual pupils;
instruction or related and support services to pupils who have and IEP;
parental involvement and due process;
school psychological services and school social worker services provided for pupils identified as emotional or behavioral disordered according to part 3525.1329 alone or in conjunction with the instructional program outlined in any pupil's IEP;
other related services provided in conjunction with the instructional program as outlined in a pupil's IEP;
paraprofessional services provided under the direction of a regular or special education teacher or a related services provider that:
enhance the instruction provided by the teacher or related services staff; and
supplement instructional activities or provide extended practice in instances in which the paraprofessional has had training and ongoing support from a special education teacher or related services staff;
program coordination; and
due process facilitation, except for attorney costs for suit preparation.
The special education initial aid equals the sum of the following amounts computed using current year data:
(1) 68 percent of the salary of each essential person employed in the district's program for children with a disability during the fiscal year, whether the person is employed by one or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy for the Blind, 68 percent of the salary of each instructional aide assigned to a child attending the academy, if that aide is required by the child's individual education plan;
(3) for special instruction and services provided to any pupil by contracting with public, private, or voluntary agencies other than school districts, in place of special instruction and services provided by the district, 52 percent of the difference between the amount of the contract and the general education revenue, excluding basic skills revenue and alternative teacher compensation revenue, and referendum equalization aid attributable to a pupil, calculated using the resident district's average general education revenue and referendum equalization aid per adjusted pupil unit for the fraction of the school day the pupil receives services under the contract. This includes children who are residents of the state, receive services under this subdivision and subdivision 1, and are placed in a care and treatment facility by court action in a state that does not have a reciprocity agreement with the commissioner under section 125A.155 as provided for in section 125A.79, subdivision 8;
(4) for special instruction and services provided to any pupil by contracting for services with public, private, or voluntary agencies other than school districts, that are supplementary to a full educational program provided by the school district, 52 percent of the amount of the contract for that pupil;
(5) for supplies and equipment purchased or rented for use in the instruction of children with a disability, an amount equal to 47 percent of the sum actually expended by the district, or a Minnesota correctional facility operating on a fee-for-service basis, but not to exceed an average of $47 in any one school year for each child with a disability receiving instruction;
(6) for fiscal years 1997 and later, special education base revenue shall include amounts under clauses (1) to (5) for special education summer programs provided during the base year for that fiscal year;
(7) the cost of providing transportation services for children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause (4).
MN Statute 125A.76, subd. 2
The state total special education aid equals $529,247,000 for fiscal year 2007, $694,063,000 for fiscal year 2008, $719,470,000 for fiscal year 2009, $735,693,000 for fiscal year 2010, and $786,586,000 for fiscal year 2011. The state total special education aid for later fiscal years equals:
(1) the state total special education aid for the preceding fiscal year; times
(2) the program growth factor; times
(3) the greater of one, or the ratio of the state total average daily membership for the current fiscal year.
MN Stat. 125A Subd. 4
A school district's special education aid for fiscal year 2008 and later equals the state total special education aid times the ratio of the district's initial special education aid to the state total initial special education aid.
MN Stat. 125A subd.5
Special education forecast maintenance of effort.
If, on the basis of a forecast of general fund revenues and expenditures under section 16A.103, the state's expenditures for special education and related services for children with disabilities from nonfederal sources for
a fiscal year, including special education aid under section 125A.76; special education excess cost aid under section 125A.76, subdivision 7; travel for home-based services under section 125A.75, subdivision 1; aid for students with disabilities under section 125A.75, subdivision 3; court-placed special education under section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8; and direct expenditures by state agencies are projected to be less than the amount required to meet federal special education maintenance of effort, the additional amount required to meet federal special education maintenance of effort is added to the state total special education aid in section 125A.76, subdivision 4.
If, on the basis of a forecast of general fund revenues and expenditures under section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater than previously forecast for an enacted budget, and an addition to state total special education aid has been made under paragraph (a), the state total special education aid must be reduced by the lesser of the amount of the expenditure increase or the amount previously added to state total special education aid in section 125A.76, subdivision 4.
For the purpose of this section, "previously forecast for an enacted budget" means the allocation of funding for these programs in the most recent forecast of general fund revenues and expenditures or the act appropriating money for these programs, whichever occurred most recently. It does not include planning estimates for a future biennium.
If the amount of special education aid is adjusted in accordance with this subdivision, the commissioner of education shall notify the chairs of the legislative committees having jurisdiction over kindergarten through grade 12 education regarding the amount of the adjustment and provide an explanation of the federal maintenance of effort requirements.
MN Statue 125A.76, Subd 8
13.06.01 Third Party Obligation to Payment
Subd. 1. Nothing in sections 125A.03 to 125A.24 and 125A.65 relieves an insurer or similar third party from an otherwise valid obligation to pay, or changes the validity of an obligation to pay, for services rendered to a child with a disability, and the child's family. A school district shall pay the nonfederal share of medical assistance services provided according to section 256B.0625, subdivision 26. Eligible expenditures must not be made from federal funds or funds used to match other federal funds. Any federal disallowances are the responsibility of the school district. A school district may pay or reimburse co-payments, coinsurance, deductibles, and other enrollee cost-sharing amounts, on behalf of the student or family, in connection with health and related services provided under an individual educational plan.
Subd. 2. Beginning July 1, 2000, districts shall seek reimbursement from insurers and similar third parties for the cost of services provided by the district whenever the services provided by the district are otherwise covered by the child's health coverage. Districts shall request, but may not require, the child's family to provide information about the child's health coverage when a child with a disability begins to receive services from
the district of a type that may be reimbursable, and shall request, but may not require, updated information after that as needed.
For children enrolled in medical assistance under chapter 256B or MinnesotaCare under chapter 256L who have no other health coverage, a district shall provide an initial written notice to the enrolled child's parent or legal representative of its intent to seek reimbursement from medical assistance or MinnesotaCare for the individual education plan health-related services provided by the district.
The district shall give the parent or legal representative annual written notice of:
(1) the district's intent to seek reimbursement from medical assistance or MinnesotaCare for individual education plan health-related services provided by the district;
(2) the right of the parent or legal representative to request a copy of all records concerning individual education plan health-related services disclosed by the district to any third party; and
(3) the right of the parent or legal representative to withdraw consent for disclosure of a child's records at any time without consequence.
The written notice shall be provided as part of the written notice required by Code of Federal Regulations, title 34, section 300.504.
In order to access the private health care coverage of a child who is covered by private health care coverage in whole or in part, a district must:
(1) obtain annual written informed consent from the parent or legal representative, in compliance with subdivision 5; and
(2) inform the parent or legal representative that a refusal to permit the district or state agency to access their private health care coverage does not relieve the district of its responsibility to provide all servicesnecessary to provide free and appropriate public education at no cost to the parent or legal representative.
If the commissioner of human services obtains federal approval to exempt covered individual education plan health-related services from the requirement that private health care coverage refuse payment before medical assistance may be billed, paragraphs (b), (c), and (d) shall also apply to students with a combination of private health care coverage and health care coverage through medical assistance or MinnesotaCare.
In the event that Congress or any federal agency or the Minnesota legislature or any state agency establishes lifetime limits, limits for any health care services, cost-sharing provisions, or otherwise provides that individual education plan health-related services impact benefits for persons enrolled in medical assistance or MinnesotaCare, the amendments to this subdivision adopted in 2002 are repealed on the effective date of any federal or state law or regulation that imposes the limits. In that event, districts must obtain informed consent consistent with this subdivision as it existed prior to the 2002 amendments and subdivision 5, before seeking
reimbursement for children enrolled in medical assistance under chapter 256B or MinnesotaCare under chapter 256L who have no other health care coverage.
Subd. 3. Use of reimbursements. Of the reimbursements received, districts may:
(1) retain an amount sufficient to compensate the district for its administrative costs of obtaining reimbursements;
(2) regularly obtain from education- and health-related entities training and other appropriate technical assistance designed to improve the district's ability to determine which services are reimbursable and to seek timely reimbursement in a cost-effective manner; or
(3) reallocate reimbursements for the benefit of students with special needs in the district.
Subd. 4. Parents not obligated to use health coverage. To the extent required by federal law, a school district may not require parents of children with disabilities, if they would incur a financial cost, to use private or public health coverage to pay for the services that must be provided under an individual education plan.
Subd. 5. Informed consent. When obtaining informed consent, consistent with sections 13.05, subdivision 4, paragraph (d); and 256B.77, subdivision 2, paragraph (p), to bill health plans for covered services, the school district must notify the legal representative (1) that the cost of the person's private health insurance premium may increase due to providing the covered service in the school setting, (2) that the school district may pay certain enrollee health plan costs, including but not limited to, co-payments, coinsurance, deductibles, premium increases or other enrollee cost-sharing amounts for health and related services required by an individual service plan, or individual family service plan, and (3) that the school's billing for each type of covered service may affect service limits and prior authorization thresholds. The informed consent may be revoked in writing at any time by the person authorizing the billing of the health plan.
Subd. 6. District obligation to provide service. To the extent required by federal law, no school district may deny, withhold, or delay any service that must be provided under an individual education plan because a family has refused to provide informed consent to bill a health plan for services or a health plan company has refused to pay any, all, or a portion of the cost of services billed.
Subd. 7. District disclosure of information. A school district may disclose information contained in a student's individual education plan, consistent with section
MN Statute 125A.21
Nothing in this section relieves an insurer or similar third party from an otherwise valid obligation to pay, or changes the validity of an obligation to pay, for services rendered to a child with a disability, and the child's family.
MN Statue 125A.40
A county human services agency or county board must continue to provide services set forth in their county social service agency plan. The county human services agency or county board must serve children with disabilities under age five and their families, or as specified in the IFSP for children with disabilities, birth through age two, or the individual service plan of each child. Special instruction and related services for which a child with a disability is eligible under this section are the responsibility of the local school board. It is the joint responsibility of county boards and school boards to coordinate, provide, and pay for all appropriate services required in
section 125A.29 and to facilitate payment for services from public and private sources.
MN Statute 125A.38
The districts within the ASEC are committed to accessing third party billing dollars. The cooperative provides an MA biller who assists staff in the districts in obtaining consent to bill as well is actual billing of MA and MinnesotaCare activities. The districts do not bill private insurance for school based services. Information is provided to parents on a yearly basis through the Parental Rights Brochure. Additional information can be found on the ASEC web site.
A public agency may use the Medicaid or other public insurance benefits programs in which a child participates to provide or pay for services required under this part, as permitted under the public insurance program, except as provided in paragraph (d)(2) of this section.
34 C.F.R.300.144(d)(1)
With regard to services required to provide FAPE to an eligible child under this part, the public agency:
May not require parents to sign up for or enroll in public insurance programs in order for their child to receive FAPE under Part B of the Act;
May not require parents to incur an out-of-pocket expense such as the payment of a deductible or co-pay amount incurred in filing a claim for services provided pursuant to this part, but pursuant to paragraph (g)(2) of this section, may pay the cost that the parent otherwise would be required to pay;
May not use a child's benefits under a public insurance program if that use would:
Decrease available lifetime coverage or any other insured benefit;
Result in the family paying for services that would otherwise be covered by the public insurance program and that are required for the child outside of the time the child is in school;
Increase premiums or lead to the discontinuation of insurance; or
Risk loss of eligibility for home and community-based waivers, based on aggregate health related expenditures; and
Must obtain parental consent consistent with 300.622.
34 C.F.R. 300154(d)(2)
Additional information regarding third party billing may be obtained from the Minnesota Department of Education Q & A document.
With regard to services required to provide FAPE to an eligible child under this part, a public agency may access a parent's private insurance proceeds only if the parent provides informed consent consistent with 300.9.
Each time the public agency proposes to access the parent's private insurance proceeds, the agency must:
Obtain parental consent in accordance with paragraph (e)(1) of this section; and
Inform the parents that their refusal to permit the public agency to access their private insurance does not relieve the public agency of its responsibility to ensure that all required services are provided at no cost to the parents.
34 C.F.R. 300.154
The districts within the ASEC do not ask for access to parents' private insurance.
If a public agency is unable to obtain parental consent to use the parent's private insurance, or public insurance when the parent would incur a cost for a specified service required under this part, to ensure FAPE the public agency may use its Part B funds to pay for the service.
To avoid financial costs to parents who otherwise would consent to use private insurance, or public insurance if the parent would incur a cost, the public agency may use its Part B fund to pay the cost the parents otherwise would have to pay to use the parent's insurance (e.g. the deductible or co-pay amounts).
34 C.F.R. 300.154(f)
Funds provided under [20 U.S.C. 1443]
