Creates the calculation by which to determine yearly tuition and regional rate reimbursement for approved school-age and preschool special education programs.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8013
SPONSOR: Benedetto TITLE OF BILL:
An act to amend the education law, in relation to providing an annual
growth amount for tuition and regional rate reimbursement for approved
school-age and preschool special education programs
PURPOSE OF THE BILL:
The proposed legislation would provide an annual growth amount, corre-
lating growth in total state funding for general support for public
schools, in the tuition and regional rate reimbursement for school age
programs operated by in-state approved private schools for the education
of students with disabilities, by special act school districts, and by
approved July and August programs for students with disabilities; and
for approved preschool special education programs.
SUMMARY OF THE PROVISIONS OF THE BILL:
Section 1 of the bill amends paragraph c of subdivision 4 of section
4405 of the education law to provide that for the 2021-22 school year
and thereafter, annual tuition and/or regional rates for school age
programs operated by in-state approved private residential or non-resi-
dential schools for the education of students with disabilities, by
special act school districts, and by approved July and August programs
for students with disabilities, and for approved preschool special
education programs including, but not limited to, special class
programs, special class in an integrated setting programs (SCIS),
preschool multi-disciplinary evaluation programs (MDE), special educa-
tion itinerant services (SEIS), and preschool transportation services
shall grow by a percentage equal to the greater of: (i) the difference
of the quotient arrived at when dividing the statewide apportionments
for general support for public schools, as defined in subdivision one of
section thirty-six hundred nine-a of the Education Law for the current
year by such apportionments for the base year, as such terms are defined
in subdivision one of section thirty-six hundred two of this chapter, as
computed based on an electronic data file used to produce the school aid
computer listing produced by the commissioner of education in support of
the enacted budget for the current year, less one; or (ii) zero.
Section 2 of the bill is the effective date.
STATEMENT IN SUPPORT OF THE BILL:
Tuition and regional rate reimbursement for approved providers of
special education programs and services is established by the New York
State Education Department (Department) and approved by the Division of
the Budget (DOB). The Department establishes annual tuition rates for
over 1,000 approved special education programs at approved private
schools, public schools, special act school districts, and BOCES and
regional rates for NIDE, SETS, 1:1 teacher aide, 1:1 nurse, 1:1 inter-
preter, and preschool transportation services. Annual tuition rates for
special class and SCIS programs are established using a rate system that
is based on actual provider historical cost and enrollment data, with a
trend factor applied. The tuition rate methodology for special class and
SCIS programs includes funding containment parameters to restrict fund-
ing for executive compensation, limit reimbursement for facility and
administrative expenses (it is expected that at least 70 percent of each
reimbursable dollar will be spent on direct care services to students)
and contain rates to a percentage increase from a previous year's rate.
In instances where the funding containment measures place a hardship on
a provider's ability to deliver mandated services and/or remain fiscally
viable, a provider may submit a tuition rate appeal or waiver request
with the Department to consider a tuition rate adjustment. In recent
years, regional rates for MDE, SEIS, 1:1 teacher aide, and preschool
transportation services have been calculated based on the prior's years
rate plus any applicable approved percentage increase.
In recent years, the volume of tuition rate appeals and waivers have
increased at an unsustainable rate, the result of which is funding
delays to the providers, which hinders the provider's ability to budget
for their operations and make sound fiscal decisions. The Department,
DOB, approved providers, and other stakeholders have been discussing
issues with the current special education tuition and regional rate
setting methodology and possible alternatives to the current methodology
that would enable tuition and regional rates to be more flexible with
programmatic needs and issued in a timely manner, which would allow
providers to better manage their programs. While several administrative
tuition and regional methodology reforms have been adopted in recent
years that have provided some rate relief, tuition rate appeals continue
to be sought at an unsustainable volume.
Creating a statutory index to provide an annual funding increase commen-
surate with the growth in the general support for public schools would
help address the financial stability for approved school-age and
preschool programs serving students with disabilities to enable them to
better provide mandated services to the students they serve. This meas-
ure. would establish predicable tuition and regional rate increases and
allow for improved budget planning.' While in recent years the tuition
growth for school-age providers has mirrored the growth in general
support for public schools, the tuition growth for preschool providers
of special class and SCIS programs, and the 1:1 teacher aide and
preschool transportation services regional rates have been held at 2.0%
annually. In 2019-20, SETS regional rates received a 2.0% increase with
MDE rates remaining fiat since 2011-12. This legislation would ensure
funding parity in tuition and regional rate reimbursement for the
provision of free appropriate public education to preschool and school-
age students with disabilities.
BUDGETARY IMPLICATIONS OF THE BILL:
Linking the 2021-22 school year tuition growth rate for Special Adt
School Districts, Approved Private Schools Serving Students with Disa-
bilities (853 Schools), Extended School Year Programs operated by school
districts and BOCES, and the rates for school-age 1:1 teacher aides, to
the 7% growth in general support for public schools for the 2021-22
school year is projected to cost approximately $72.7 million ($45.7
million state, $24 9 million school districts, and $21 million counties)
for the 2021-22 school year. Linking the 2021-22 school year tuition
growth rate for preschool special class programs, SCIS, and regional
rates for preschool SEIS, 1:1 teacher' aide, and transportation services
to the 7% growth in general support for public schools for the 2021-22
school year is projected to cost approximately $88.2 million ($52 5
million state, $35.7 million counties) for the 2021-22 school year.
PRIOR LEGISLATIVE HISTORY:
This is a new bill. However, bills containing similar provisions were
previously introduced in 2014, 2015, 2016, and 2017. Specifically, in
2014, the similar bill was introduced by the Senate as 5.7638, was
referred to the Education Committee and no further action was taken. It
was also introduced by the Assembly as A.9767 and was reported from the
Education Committee and referred to the Ways and Means Committee and no
further action was taken. In 2015 and 2016, the similar bill was intro-
duced in the Senate and Assembly (S.7916 Flanagan/A.5061-A Nolan) and
remained in the Education Committees of both houses. In 2017, the simi-
lar bill was introduced in the Senate and Assembly (S.5246-A
Marcellino/A.6514-A Nolan) and passed the Assembly but remained in the
Senate Education Committee.
EFFECTIVE DATE:
This act would take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8013
2021-2022 Regular Sessions
IN ASSEMBLY
June 4, 2021
___________
Introduced by M. of A. BENEDETTO -- (at request of the State Education
Department) -- read once and referred to the Committee on Education
AN ACT to amend the education law, in relation to providing an annual
growth amount for tuition and regional rate reimbursement for approved
school-age and preschool special education programs
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph c of subdivision 4 of section 4405 of the educa-
2 tion law, as amended by chapter 82 of the laws of 1995, is amended to
3 read as follows:
4 c. The director of the budget, in consultation with the commissioner
5 [of education], the commissioner of social services, and any other state
6 agency or other source the director may deem appropriate, shall approve
7 reimbursement methodologies for tuition and for maintenance. Any modifi-
8 cation in the approved reimbursement methodologies shall be subject to
9 the approval of the director of the budget. [Notwithstanding any other
10 provision of law, rule or regulation to the contrary, tuition rates
11 established for the nineteen hundred ninety-five--ninety-six school year
12 shall exclude the two percent cost of living adjustment authorized in
13 rates established for the nineteen hundred ninety-four--ninety-five
14 school year.] Tuition and/or regional rates approved for the two thou-
15 sand twenty-one--two thousand twenty-two school year and thereafter for
16 special services or programs provided to school-age students by approved
17 private residential or non-residential schools for the education of
18 students with disabilities that are located within the state, by special
19 act school districts, and by July and August programs for students with
20 disabilities approved pursuant to section forty-four hundred eight of
21 this article, and for special services or programs provided to preschool
22 students by programs serving preschool students with disabilities
23 approved pursuant to section forty-four hundred ten of this article
24 including, but not limited to, special class and special class in an
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08508-04-1
A. 8013 2
1 integrated setting programs, multi-disciplinary evaluation programs,
2 special education itinerant services, and preschool transportation
3 services for which tuition and/or regional rates are determined, shall
4 grow by a percentage equal to the greater of: (i) the difference of the
5 quotient arrived at when dividing the statewide apportionments for
6 general support for public schools, as defined in subdivision one of
7 section thirty-six hundred nine-a of this chapter, for the current year
8 by such apportionments for the base year, as such terms are defined in
9 subdivision one of section thirty-six hundred two of this chapter, as
10 computed based on an electronic data file used to produce the school aid
11 computer listing produced by the commissioner in support of the enacted
12 budget for the current year, less one; or (ii) zero.
13 § 2. This act shall take effect immediately.
