The New York State Senate

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 MDE, SEIS, 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 predictable 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, SEIS regional rates received a 2.0% increase with
MDE rates remaining flat 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 Act
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 $2.1 million coun-
ties) 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.
FOR FURTHER INFORMATION CONTACT:
Jennifer Trowbridge
Office of Governmental Relations
Education Building
89 Washington Avenue
Albany, New York 12234
(518) 486-5644