Fiscal Committee June 8, Robert (Bob) Steponovich Business Services Director

Transcription

1 Fiscal Committee June 8, 2017 Robert (Bob) Steponovich Business Services Director

2 Communication Facilitates Governance CEO Council Each charter = One vote Two Council meetings per year Fall/Spring Recommendations for Council vetted with Executive Committee Timely communication to the field Two Fiscal Committee meetings each year Following CEO Follow up from CEO Council

3 Allocation Plan 11 Elements I. State Special Education Funding II. Federal Special Education Funding III. Special Education Deficit IV. Partner Definition V. Charter SELPA Administrative Fee for Contracted Services VI. Set Aside Pool VII. Unspent Funds VIII.Income Re-Allocation IX. Educationally Related Mental Health Services (ERMHS) X. Risk Pool XI. Low Incidence Materials and Services Core Principles Stability and predictability of funding is critically important Timely and accurate projections with no surprises Timely and accurate distribution of cash Reasonable and consistent rationale developed with a standard of fairness and equitability Transparency

4 Today s Agenda 1. Budget Update, Deficit, Rate Smoothing Pool 2. Set-Aside Risk Pool 3. Unspent Funds/Charters At-Risk 4. Mental Health Funding (ERMHS) 5. Legal Risk Pool May 2017 CEO Council Action 6. Low Incidence Funding 7. SELPA Fiscal Portal 8. General Information 9. Disproportionality in Special Education May 2017 CEO Council Action

5 1 CEO Budget Update, Deficit, Rate Smoothing Pool Council May 2017 Info Item

6 Special Education Funding Deficits Yes, the AB602 formula said you would get $100. But, we just can t budget for that, so here s $98. Tell ya what. I ll hit you back if I find some available cash down the road. K?

7 Budgeting in and State Current Year P-2 ADA Federal* Prior Year Enrollment (CBEDS) $ Estimate $507 Feb 2017 Confirmed $ Estimate $ Estimate $127 Feb 2017 Confirmed $ Estimate *Eligible member defined as existing in prior year and included by CDE in the federal grant. If a charter in the Charter SELPA had unspent funds > 25% in prior year, they are ineligible to receive federal funds in current year. Assumes 2% Deficit Rate Smoothing Pool dollars used to guarantee

8 Rate Detail Assumes COLA of 1.56% Assumes final deficit (February 2019) of 2% No changes are expected, but should the budget act signed into law change the rate or June CDE deficit certifications change significantly from projections, Charter SELPA leadership will communicate a revised rate in July 2017.

9 Rate Smoothing Pool Background State level deficits in special education have made funding difficult to predict. The rate smoothing pool concept was established by CEO Council action in , with being the first year of implementation. The goal is to provide budget projections with a higher degree of reliability for state funding.

10 Rate Smoothing Pool Budget for Deficit Restored to 1.7% Feb 2017 Because Deficit P-1 Feb 2017 Projection is Deficit Restored to 2.0% Feb 2018

11 Pool Balance

12 2 Set-Aside Risk Pool CEO Council May 2017 Info Item

13 Set-Aside Risk Pool changed this year Reserve for SELPA-wide Protection SELPA funding declines as a result of the action of a member SELPA required to return funding No recourse to recover the funds bankruptcy/closure Model Change for Previous model = severable risk model Shared risk = lower required balance needed Existing member contribution = $2.50/ADA New member contribution = $5.00/ADA contribution Actions Close under previous rules (i.e. final adjustment, interest, return to departing charters) Return amounts above $2.50 per ADA to existing partners Transfer $200K from Legal Risk Pool

14 Budget Update No expense in from the fund

15 Budget Impact Partners returning in Amount above $2.50 per ADA (PY P-2) returned $25K maximum Distribution schedule on website New charters forward New and Expansion One-time contribution of $5 per ADA (CY P-2).

16 3Unspent Funds Charters At-Risk CEO Council May 2017 Action Item

17 Background State Funding Advanced on a schedule Expenditures reported after the fact Can be carried over Risk Accumulation of large carryover balances Charters that close or are closed suddenly Charters experiencing at-risk conditions (e.g. Notice of Revocation, Bankruptcy, FCMAT extraordinary audit, audit related)

18 Allocation Plan & Operating Policy Revised Unspent funds greater than 25% or deemed at-risk Reimbursement based state funding cash flow Monthly expenditure reporting Re: 25% unspent, CY apportionments begin after carryover is spent Payments will not exceed regular monthly apportionments Need is not demonstrated when Final Expenditures < CY Revenue Any unneeded funds go to Legal Risk Pool Budget Impact = Modified Cash Flow

19 4 CEO Mental Health Funding Educationally Related Mental Health Services (ERMHS) Council May 2017 Info Item

20 Level 2 Level 3 Site-Based Level 3 NPS Level 3 NPS-Residential IEP Based ERMHS Services Structured Therapeutic ERMHS Program ERMHS in NPS Room and Board for ERMHS Services Any Eligibility ED ED ED $8 Million $100,000 Transportation $3 Million 80% 80% 90% of the of the lesser lesser of: of: $3,300 per service $250 per ADA Budget Request 80% 80% 90% of ERMHS of ERMHS Allowed Cost 90% of ERMHS Allowed Cost 100% of Room & Board Costs *By September 15 of each year, there will be a finding of sufficiency of funding that sets the Level 2 rate at a range from $2,000 to $3,000 (or higher) and provides for Level 2 transportation cost funding and Level 2 indirect to be claimed. By May of each year, SELPA will make an additional finding of sufficiency to fund more than 80%.

21 ERMHS Budget Update Charter SELPA ERMHS % Projected (May 90% Variance State 7,295,390 8,591,961 18% Federal 1,196,061 1,390,903 16% Total Income 8,491,451 9,983,000 18% Level 2 5,356,467 7,570,000 41% Level 3 Therapeutic 37, , % Level 3 NPS 971,774 1,590,000 64% Level 3 Residential 541,788 1,350, % SELPA indirect 254, ,000 18% Total Expenditures 7,162,018 11,170,000 56% 6 vs. 1 Site Based 52 vs. 37 NPS placements $87K vs. $51K per placement for Residential Income less Expenditures 1,329,433 (1,187,000) -189% Beginning Balance 1,259,373 2,588,806 Ending Balance 2,588,806 1,401, % 14.04%

22 Budget Impact Funding Level 2 reimbursement from 80% to 90% ($3,300/service on 12/1/16) Level 2 transportation from 80% to 90% Level 3 Site Based Therapeutic reimbursement from 80% to 90% Level 3 NPS ERMHS reimbursement 90% Level 3 NPS Residential reimbursement 100% Budgeting Assumptions Level 2 80% * Level 3 Site Based 80% Level 3 NPS 90% Level 3 100% *Level 2 per service rate = $2,000 to $3,000+ (established in Sept 2017)

23 5 Legal Risk Pool CEO Council May 2017 Action Item

24 Background Reimbursement for costs associated with a due process filing. Legal Risk Pool funding : Forfeited Set-Aside funds* Unspent modified funding reserves Closed Charters that did not expend funds * is the last year for this revenue source.

25 Budget Update

26 Reimbursement Parameters Increased: Parameters for and future years: Increased reimbursement percentage from 50% to 60% Increased maximum claim amount from $20K to $30K Maximum reimbursement for legal costs is now $18K (60% of $30K maximum)

27 Budget Impact Increased Revenue Current and future year eligible claims Claims already reimbursed in will be analyzed for additional eligibility

28 6 Low Incidence Funding CEO Council May 2017 Info Item

29 Background Services & Materials Hearing impairments (hard of hearing, deaf) Vision impairments Severe orthopedic impairments Any combination thereof (e.g. deaf blind) SELPA receives $430 x PY LI pupil count $600 minimum claim Claims must be submitted by May 1 st Claims rising faster than funding

30 The Low Incidence Conundrum $153K $87K $97.4K $118K 94 Year Available $ Per Claim $2, $1, $1, $ Claims Funding

31 CEO Council Approved (May 2016) For and future years: Set minimum per claim reimbursement level in May of PY Determine final claim reimbursement level in May of CY Starting point for reimbursement is the state rate May increase to a maximum of $3,000

32 Budget Impact Funding started at $430/claim Funded rate is up to $1,500 (based on requests submitted by May 1 st ) Reimbursements paid in July Funding starts at $430/claim Final rate communicated May 2018

33 7 SELPA Fiscal Portal

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35 Credentials are coming

36 8 General Information

37 Items of Note Administrative Fee Multi-Year Revenue Projection Tool Cash Advance New charters 1 st state cash = Feb 2018 Start-up charters = No federal revenue until year 2 25% advance on annual state revenue Repaid out of May & June apportionments Application by October 13 th ACH Payments Faster cash More secure

38 Items of Interest AB 312 Equalize SELPA 90 th percentile ~$50 more/ada to El Dorado Charter SELPA Triggered once LCFF fully funded Ed Committee passed unanimously Assembly Appropriations Committee AB 1449 LCFF add-on for SpEd based on percentage of identified students Now a 2-year bill

39 Mark Your Calendars Final Mental Health Expenditures & Final Federal Expenditures Available 6/22/17 - Due 7/13/17* Final 16/17 Revenues and Accruals Posted 8/7/17 Year End/MOE Template Available 8/7/17 Due 9/5/17 * Credentials are coming

40 Connection Opportunities Fiscal Workshops Los Angeles Region Sacramento Region Bay Area Region San Diego Region Monday, July 24 th Tuesday, August 1 st Wednesday, August 2 nd Wednesday, August 9 th Program Business Roundtables October PM Sessions Tuesday, October 24th October AM Sessions Wednesday, October 25th February AM Sessions Tuesday, February 13th February PM Sessions Thursday, February 15th

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42 Fiscal Communication

43 9 Disproportionality in Special Education Ginese Quann Charter SELPA Director CEO Council May 2017 Info Item

44 Disproportionality Defined LEA disproportionality refers to the overrepresentation of a particular racial or ethnic group in one of four areas: Special Education in general Special Education within a specific disability category Discipline Least Restrictive Environment (LRE)

45 Changes to Methodology CDE has made changes to the calculation methodologies for Indicators 4, 9, and 10 on the Annual Performance Report (APR) as well as adding disproportionality for Least Restrictive Environment (LRE). These changes are being implemented in , and we anticipate CDE will be recalculating data for the and school years.

46 Consequences of Disproportionality Any LEA that is found to have disproportionate representation will be subject to state monitoring to ensure that the LEA s policies, procedures, and practices are compliant and do not lead to inappropriate identification.

47 Significant Disproportionality LEAs can be identified as having significant disproportionality by the following criteria: Identified disproportionate by both measures (E-formula and Alternate Risk Ratio) defined as: Identified disproportionate in the same cell (disability by ethnicity): In the current year, and in at least two of the previous three years. If found Significantly Disproportionate, LEAs are required to use 15 percent of IDEA funds for Coordinated Early Intervening Services (CEIS).

48 Disproportionality Prevention Implement and monitor systems for correct data entry and regular examination of data to ensure data integrity between student information systems (CASEMIS and CALPADS). Implement and monitor processes and procedures for systemic behavior interventions, i.e. PBIS. Implement and monitor disciplinary policies, processes, and procedures that minimize suspensions and expulsions. Explore programs and practices that support alternatives to suspension and expulsion, i.e. Restorative Practices. Move towards inclusive practices to maximize opportunities for special education students in general education settings.