§ 4405 — Computing financial responsibility for special educational services for certain children with disabilities

§ 4405. Computing financial responsibility for special educational\nservices for certain children with disabilities. 1. Maintenance for\nchildren with disabilities in residential schools under the provisions\nof this article or state schools under the provisions of articles\neighty-seven and eighty-eight of this chapter.\n a. Maintenance for a student with a disability placed in a residential\nschool under the provisions of this article shall be a charge upon the\nsocial services district wherein such child resides at the time of the\ncommencement of the school year for which aid is to be paid. Financial\nresponsibility for the maintenance of a student with a disability placed\nin a state school under the provisions of articles eighty-seven and\neighty-eight of this chapter shall be in accordance with the provisions\nof such articles.\n c. Expenditures made by a social services district for the maintenance\nof a child with a disability placed in a residential school under the\nprovisions of this article, including a child with a disability placed\nby a school district committee on special education pursuant to this\narticle in a special act school district, or a state school subject to\nthe provisions of articles eighty-seven and eighty-eight of this\nchapter, shall be subject to reimbursement by the child's school\ndistrict of residence pursuant to the provisions of subdivision ten of\nsection one hundred fifty-three of the social services law. The amount\nof such reimbursement shall be a charge upon such school district of\nresidence.\n 2. Transportation expense. The transportation expense of each child\nwith a disability shall be aidable in accordance with subdivision seven\nof section thirty-six hundred two of this chapter; provided, however,\nthat for the school year commencing July first, nineteen hundred\nseventy-six, school districts shall be apportioned ninety per centum of\nthe estimated amount of its approved costs of such year for the\ntransportation of children with disabilities whose transportation was\nformerly provided under a family court order and is now a charge upon\nthe school district, subject to the adjustment of any errors after the\nactual costs are ascertained.\n 3. Computing state financial responsibility for operating expenses for\ncertain children with disabilities.\n a. In addition to any other apportionments under the provisions of\nthis chapter, there shall be apportioned to each applicable school\ndistrict for each child with a disability in attendance in a state\nschool under the provisions of paragraph d of subdivision two of section\nforty-four hundred one of this article or an approved program under the\nprovisions of paragraphs e, f, g, h, i and l of such subdivision two,\nthe product of such attendance, computed in accordance with regulations\nof the commissioner, and the excess cost aid: an amount computed by\nmultiplying the excess cost, as defined in subdivision six of section\nforty-four hundred one of this article by the excess cost aid ratio\ndefined in subdivision seven of this section.\n b. In addition to the apportionment provided to a school district\npursuant to paragraph a of this subdivision for the attendance of a\nchild with a disability in a state school under the provisions of\nparagraph d of subdivision two of section forty-four hundred one of this\narticle, for each such child in attendance in such school prior to July\nfirst, nineteen hundred ninety, there shall be apportioned an additional\namount. Such amount shall equal the product of the taper aidable cost\nmultiplied by the taper aid ratio. The taper aidable cost shall equal\nthe positive remainder resulting when (i) the apportionment attributable\nto such child pursuant to paragraph a of this subdivision is subtracted\nfrom (ii) the product of such child's attendance and the tuition for the\nstate school such child attends. The taper aid ratio shall equal the\nquotient, computed to three decimals without rounding, resulting when\nthe positive remainder of one minus the combined wealth ratio, as\ndefined in subdivision three of section thirty-six hundred two of this\nchapter is divided by seventy-five one-hundredths. Such aid ratio shall\nnot be less than zero nor more than one.\n c. The apportionments to each school district pursuant to this\nsubdivision shall be based on excess cost paid and attendance during the\nbase year.\n d. Notwithstanding sections thirty-six hundred seven and thirty-six\nhundred nine-a of this chapter, apportionments pursuant to this\nsubdivision shall be paid to school districts upon submission of reports\nof attendance and approved tuition expenditures filed in a format\nprescribed by the commissioner and shall be paid from the annual\napportionment of public moneys for the support of public schools in\naccordance with section thirty-six hundred nine-b of this chapter.\n 4. a. The commissioner of education and the commissioner of social\nservices shall develop reimbursement methodologies for the tuition and\nmaintenance components of approved private schools and special act\nschool districts. The commissioner of education, in consultation with\nthe appropriate state agencies and departments, shall have\nresponsibility for developing a reimbursement methodology for tuition\nwhich shall be based upon appropriate educational standards promulgated\npursuant to regulations of the commissioner of education. The\ncommissioner of social services, in consultation with appropriate state\nagencies and departments, shall have responsibility for developing a\nreimbursement methodology for maintenance, pursuant to section three\nhundred ninety-eight-a of the social services law and the regulations\npromulgated thereunder.\n b. The commissioner of education shall develop reimbursement\nmethodologies for the tuition components and, in consultation with the\ncommissioner of social services, the maintenance components of the New\nYork state school for the blind and the New York state school for the\ndeaf based upon appropriate standards promulgated pursuant to\nregulations of the commissioner of education.\n c. The director of the budget, in consultation with the commissioner\nof education, the commissioner of social services, and any other state\nagency or other source the director may deem appropriate, shall approve\nreimbursement methodologies for tuition and for maintenance. Any\nmodification in the approved reimbursement methodologies shall be\nsubject to the approval of the director of the budget. Notwithstanding\nany other provision of law, rule or regulation to the contrary, tuition\nrates established for the nineteen hundred ninety-five--ninety-six\nschool year shall exclude the two percent cost of living adjustment\nauthorized in rates established for the nineteen hundred\nninety-four--ninety-five school year.\n d. Effective upon final approval by the director of the budget of the\nreimbursement methodologies for both tuition and maintenance, the\ncommissioner of education shall annually determine a tuition rate in\nconformance with this paragraph for each private school and special act\nschool district.\n e. Effective upon final approval by the director of the budget of the\nreimbursement methodologies for both tuition and maintenance, the\ncommissioner of social services shall annually determine a maintenance\nrate and a medical services rate, in accordance with this paragraph, for\neach private school and special act school district where applicable.\n f. Effective upon final approval by the director of the budget of the\nreimbursement methodologies for both tuition and maintenance, the\ncommissioner of education shall annually determine a tuition rate and,\nin consultation with the commissioner of social services, a maintenance\nrate and a medical services rate, if applicable, in conformance with\nthis subdivision for the New York state school for the blind and the New\nYork state school for the deaf.\n g. All reimbursement rates determined pursuant to this subdivision\nshall be effective for the period July first through June thirtieth.\nRates for the following year shall be submitted no later than April\nfifteenth to the director of the budget. The director shall act upon\nsuch rates within forty-five days of submission. Such rates shall not\nbecome effective until approved by the director of the budget. In the\nevent that the rates are approved after July first, then such rates\nshall be deemed to apply retroactively to such date.\n h. All reimbursements shall be subject to adjustment and final\ndetermination upon field audit conducted by the education department,\nthe department of social services, the state comptroller or any agent\nthereof.\n i. The commissioner of education, the commissioner of social services\nand the director of the budget, in consultation with other appropriate\nstate agencies and departments, shall enter into an interagency\nagreement to assure effective implementation of the provisions of this\nparagraph. The agreement shall provide for, but not be limited to, the\ndevelopment of common accounting practices and audit procedures, common\ninformation and budget forms, coordinated financial and other reporting\nrequirements for private schools and special act school districts,\nmechanisms for resolving appeals of rates established pursuant to this\nsection, and mechanisms to evaluate and recommend modification to\nreimbursement methodologies.\n j. (i) If the board of education of a special act school district\nlisted in chapter five hundred sixty-six of the laws of nineteen hundred\nsixty-seven, as amended, seeks to close a special act school district,\nthe board of education of the special act school district shall provide\nwritten notice to the commissioner with a plan for closure of the school\nat least ninety days prior to the closing date. Such plan shall include\nprovision for the safe and orderly transfer of each student with a\ndisability who was publicly placed in the program and a detailed and\nitemized list of estimated expenses necessary to close down the school\nand a detailed and itemized list of any estimated revenues to be\nreceived.\n (ii) During the close-down period and until all necessary financial\nobligations of the school district have been met pursuant to this\nparagraph, the commissioner shall require the board of education of the\nschool district to periodically submit, as required by the commissioner,\nfinancial reports and financial statements, detailing any tuition,\nand/or close-down costs and any revenues generated. In applying the\nreimbursement methodology to any remaining tuition costs and any other\nreasonable and appropriate expenses needed to close-down the special act\nschool district, the commissioner shall reject any close-down costs that\nare unnecessary or unreasonable to close-down the school, whether or not\nthe board of education submits a close-down plan.\n k. (i) The tuition methodology established pursuant to this\nsubdivision for the two thousand twenty-one--two thousand twenty-two\nschool year shall authorize approved private residential or\nnon-residential schools for the education of students with disabilities\nthat are located within the state, and special act school districts to\nretain funds in excess of their allowable and reimbursable costs\nincurred for services and programs provided to school-age students. The\namount of funds that may be annually retained shall not exceed one\npercent of the school's or school district's total allowable and\nreimbursable costs for services and programs provided to school-age\nstudents for the school year from which the funds are to be retained;\nprovided that the total accumulated balance that may be retained shall\nnot exceed four percent of such total costs for such school year; and\nprovided further that such funds shall not be recoverable on\nreconciliation of tuition rates, and shall be separate from and in\naddition to any other authorization to retain surplus funds on\nreconciliation.\n (ii) The tuition methodology established pursuant to this subdivision\nfor the two thousand twenty-two--two thousand twenty-three school year\nand annually thereafter shall authorize approved providers to retain\nfunds in excess of their allowable and reimbursable costs incurred for\nservices and programs provided to school-age and preschool students. The\namount of funds that may be annually retained shall not exceed the\nallowable surplus percentage of the approved provider's total allowable\nand reimbursable costs for services and programs provided to school-age\nand preschool students for the school year from which the funds are to\nbe retained, as defined in subparagraph (iii) of this paragraph;\nprovided that such funds shall not be recoverable on reconciliation of\ntuition rates and provided further that any interest earned or\ninvestments realized on such funds shall supplement and not supplant any\nfunds provided by the tuition methodology once retained. For purposes of\nthis subparagraph, "approved providers" shall mean private residential\nor non-residential schools for the education of students with\ndisabilities that are located within the state, special act school\ndistricts, and programs approved pursuant to section forty-four hundred\nten of this article that are subject to tuition rate reconciliation.\n (iii) The approved surplus percentage shall be as follows: eleven\npercent for the two thousand twenty-two--two thousand twenty-three\nthrough two thousand twenty-four--two thousand twenty-five school years,\neight percent for the two thousand twenty-five--two thousand twenty-six\nschool year, five percent for the two thousand twenty-six--two thousand\ntwenty-seven school year, and two percent for the two thousand\ntwenty-seven--two thousand twenty-eight school year and annually\nthereafter.\n (iv) Funds authorized to be retained under this paragraph may be\nexpended only pursuant to an authorization of the governing board of the\nschool, school district or program approved pursuant to section\nforty-four hundred ten of this article, for a purpose expressly\nauthorized as part of the approved tuition methodology for the year in\nwhich the funds are to be expended, provided that funds may be expended\nto pay prior year outstanding debts. Any school, school district, or\nprogram approved pursuant to section forty-four hundred ten of this\narticle that retains funds pursuant to this paragraph shall be required\nto annually report a statement of the total balance of any such retained\nfunds, the amount, if any, retained in the prior school year, the\namount, if any, dispersed in the prior school year, and any additional\ninformation requested by the department as part of the financial reports\nthat are required to be annually submitted to the department.\n 5. The commissioner shall annually determine the tuition rate and the\ncommissioner of social services shall annually determine the maintenance\nrate for special services or programs provided during the months of July\nand August for children with disabilities entitled to attend public\nschools without the payment of tuition pursuant to section thirty-two\nhundred two of this chapter. The commissioner of education shall\nannually determine the tuition rate, maintenance rate and the medical\nservices rate, if applicable, for such children attending the New York\nstate school for the blind or the New York state school for the deaf\nduring the months of July and August. Such rates shall be determined in\nconformance with the reimbursement methodologies established pursuant to\nsubdivision four of this section and shall be subject to the approval of\nthe division of the budget. Rates shall be determined for all special\nservices or programs as defined in section forty-four hundred one of\nthis chapter and offered during July and August.\n 6. Tuition and maintenance rates established pursuant to this section,\nonce certified by the director of the budget, shall be used in all\ncontracts for the provision of programs and services for which such\nrates were established, provided, however, that the commissioner shall\nprorate the amount to be paid for an individual pupil enrolled for a\nperiod of time which is less than the full period of time approved for\nsuch program or services.\n