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SECTION 4405
Computing financial responsibility for special educational services for certain children with handicapping conditions
Education (EDN) CHAPTER 16, TITLE 6, ARTICLE 89
§ 4405. Computing financial responsibility for special educational
services for certain children with handicapping conditions. 1.
Maintenance for children with handicapping conditions in residential
schools under the provisions of this article or state schools under the
provisions of articles eighty-seven and eighty-eight of this chapter.

a. Maintenance for a student with a disability placed in a residential
school under the provisions of this article shall be a charge upon the
social services district wherein such child resides at the time of the
commencement of the school year for which aid is to be paid. Financial
responsibility for the maintenance of a student with a disability placed
in a state school under the provisions of articles eighty-seven and
eighty-eight of this chapter shall be in accordance with the provisions
of such articles.

c. Expenditures made by a social services district for the maintenance
of a child with a disability placed in a residential school under the
provisions of this article, including a child with a disability placed
by a school district committee on special education pursuant to this
article in a special act school district, or a state school subject to
the provisions of articles eighty-seven and eighty-eight of this
chapter, shall be subject to reimbursement by the child's school
district of residence pursuant to the provisions of subdivision ten of
section one hundred fifty-three of the social services law. The amount
of such reimbursement shall be a charge upon such school district of
residence.

2. Transportation expense. The transportation expense of each child
with a handicapping condition shall be aidable in accordance with
subdivision seven of section thirty-six hundred two of this chapter;
provided, however, that for the school year commencing July first,
nineteen hundred seventy-six, school districts shall be apportioned
ninety per centum of the estimated amount of its approved costs of such
year for the transportation of children with handicapping conditions
whose transportation was formerly provided under a family court order
and is now a charge upon the school district, subject to the adjustment
of any errors after the actual costs are ascertained.

3. Computing state financial responsibility for operating expenses for
certain children with handicapping conditions.

a. In addition to any other apportionments under the provisions of
this chapter, there shall be apportioned to each applicable school
district for each child with a handicapping condition in attendance in a
state school under the provisions of paragraph d of subdivision two of
section forty-four hundred one of this article or an approved program
under the provisions of paragraphs e, f, g, h, i and l of such
subdivision two, the product of such attendance, computed in accordance
with regulations of the commissioner, and the excess cost aid: an amount
computed by multiplying the excess cost, as defined in subdivision six
of section forty-four hundred one of this article by the excess cost aid
ratio defined in subdivision seven of this section.

b. In addition to the apportionment provided to a school district
pursuant to paragraph a of this subdivision for the attendance of a
child with a handicapping condition in a state school under the
provisions of paragraph d of subdivision two of section forty-four
hundred one of this article, for each such child in attendance in such
school prior to July first, nineteen hundred ninety, there shall be
apportioned an additional amount. Such amount shall equal the product of
the taper aidable cost multiplied by the taper aid ratio. The taper
aidable cost shall equal the positive remainder resulting when (i) the
apportionment attributable to such child pursuant to paragraph a of this
subdivision is subtracted from (ii) the product of such child's
attendance and the tuition for the state school such child attends. The
taper aid ratio shall equal the quotient, computed to three decimals
without rounding, resulting when the positive remainder of one minus the
combined wealth ratio, as defined in subdivision one of section
thirty-six hundred two of this chapter is divided by seventy-five
one-hundredths. Such aid ratio shall not be less than zero nor more than
one.

c. The apportionments to each school district pursuant to this
subdivision shall be based on excess cost paid and attendance during the
base year.

d. Notwithstanding sections thirty-six hundred seven and thirty-six
hundred nine-a of this chapter, apportionments pursuant to this
subdivision shall be paid to school districts upon submission of reports
of attendance and approved tuition expenditures filed in a format
prescribed by the commissioner and shall be paid from the annual
apportionment of public moneys for the support of public schools in
accordance with section thirty-six hundred nine-b of this chapter.

4. a. The commissioner of education and the commissioner of social
services shall develop reimbursement methodologies for the tuition and
maintenance components of approved private schools and special act
school districts. The commissioner of education, in consultation with
the appropriate state agencies and departments, shall have
responsibility for developing a reimbursement methodology for tuition
which shall be based upon appropriate educational standards promulgated
pursuant to regulations of the commissioner of education. The
commissioner of social services, in consultation with appropriate state
agencies and departments, shall have responsibility for developing a
reimbursement methodology for maintenance, pursuant to section three
hundred ninety-eight-a of the social services law and the regulations
promulgated thereunder.

b. The commissioner of education shall develop reimbursement
methodologies for the tuition components and, in consultation with the
commissioner of social services, the maintenance components of the New
York state school for the blind and the New York state school for the
deaf based upon appropriate standards promulgated pursuant to
regulations of the commissioner of education.

c. The director of the budget, in consultation with the commissioner
of education, the commissioner of social services, and any other state
agency or other source the director may deem appropriate, shall approve
reimbursement methodologies for tuition and for maintenance. Any
modification in the approved reimbursement methodologies shall be
subject to the approval of the director of the budget. Notwithstanding
any other provision of law, rule or regulation to the contrary, tuition
rates established for the nineteen hundred ninety-five--ninety-six
school year shall exclude the two percent cost of living adjustment
authorized in rates established for the nineteen hundred
ninety-four--ninety-five school year.

d. Effective upon final approval by the director of the budget of the
reimbursement methodologies for both tuition and maintenance, the
commissioner of education shall annually determine a tuition rate in
conformance with this paragraph for each private school and special act
school district.

e. Effective upon final approval by the director of the budget of the
reimbursement methodologies for both tuition and maintenance, the
commissioner of social services shall annually determine a maintenance
rate and a medical services rate, in accordance with this paragraph, for
each private school and special act school district where applicable.

f. Effective upon final approval by the director of the budget of the
reimbursement methodologies for both tuition and maintenance, the
commissioner of education shall annually determine a tuition rate and,
in consultation with the commissioner of social services, a maintenance
rate and a medical services rate, if applicable, in conformance with
this subdivision for the New York state school for the blind and the New
York state school for the deaf.

g. All reimbursement rates determined pursuant to this subdivision
shall be effective for the period July first through June thirtieth.
Rates for the following year shall be submitted no later than April
fifteenth to the director of the budget. The director shall act upon
such rates within forty-five days of submission. Such rates shall not
become effective until approved by the director of the budget. In the
event that the rates are approved after July first, then such rates
shall be deemed to apply retroactively to such date.

h. All reimbursements shall be subject to adjustment and final
determination upon field audit conducted by the education department,
the department of social services, the state comptroller or any agent
thereof.

i. The commissioner of education, the commissioner of social services
and the director of the budget, in consultation with other appropriate
state agencies and departments, shall enter into an interagency
agreement to assure effective implementation of the provisions of this
paragraph. The agreement shall provide for, but not be limited to, the
development of common accounting practices and audit procedures, common
information and budget forms, coordinated financial and other reporting
requirements for private schools and special act school districts,
mechanisms for resolving appeals of rates established pursuant to this
section, and mechanisms to evaluate and recommend modification to
reimbursement methodologies.

j. (i) If the board of education of a special act school district
listed in chapter five hundred sixty-six of the laws of nineteen hundred
sixty-seven, as amended, seeks to close a special act school district,
the board of education of the special act school district shall provide
written notice to the commissioner with a plan for closure of the school
at least ninety days prior to the closing date. Such plan shall include
provision for the safe and orderly transfer of each student with a
disability who was publicly placed in the program and a detailed and
itemized list of estimated expenses necessary to close down the school
and a detailed and itemized list of any estimated revenues to be
received.

(ii) During the close-down period and until all necessary financial
obligations of the school district have been met pursuant to this
paragraph, the commissioner shall require the board of education of the
school district to periodically submit, as required by the commissioner,
financial reports and financial statements, detailing any tuition,
and/or close-down costs and any revenues generated. In applying the
reimbursement methodology to any remaining tuition costs and any other
reasonable and appropriate expenses needed to close-down the special act
school district, the commissioner shall reject any close-down costs that
are unnecessary or unreasonable to close-down the school, whether or not
the board of education submits a close-down plan.

k. The tuition methodology established pursuant to this subdivision
for the two thousand twenty-one--two thousand twenty-two school year and
annually thereafter shall authorize approved private residential or
non-residential schools for the education of students with disabilities
that are located within the state, and special act school districts to
retain funds in excess of their allowable and reimbursable costs
incurred for services and programs provided to school-age students. The
amount of funds that may be annually retained shall not exceed one
percent of the school's or school district's total allowable and
reimbursable costs for services and programs provided to school-age
students for the school year from which the funds are to be retained;
provided that the total accumulated balance that may be retained shall
not exceed four percent of such total costs for such school year; and
provided further that such funds shall not be recoverable on
reconciliation of tuition rates, and shall be separate from and in
addition to any other authorization to retain surplus funds on
reconciliation. Funds may be expended only pursuant to an authorization
of the governing board of the school or school district, for a purpose
expressly authorized as part of the approved tuition methodology for the
year in which the funds are to be expended, provided that funds may be
expended to pay prior year outstanding debts. Any school or school
district that retains funds pursuant to this paragraph shall be required
to annually report a statement of the total balance of any such retained
funds, the amount, if any, retained in the prior school year, the
amount, if any, dispersed in the prior school year, and any additional
information requested by the department as part of the financial reports
that are required to be annually submitted to the department.

5. The commissioner shall annually determine the tuition rate and the
commissioner of social services shall annually determine the maintenance
rate for special services or programs provided during the months of July
and August for children with handicapping conditions entitled to attend
public schools without the payment of tuition pursuant to section
thirty-two hundred two of this chapter. The commissioner of education
shall annually determine the tuition rate, maintenance rate and the
medical services rate, if applicable, for such children attending the
New York state school for the blind or the New York state school for the
deaf during the months of July and August. Such rates shall be
determined in conformance with the reimbursement methodologies
established pursuant to subdivision four of this section and shall be
subject to the approval of the division of the budget. Rates shall be
determined for all special services or programs as defined in section
forty-four hundred one of this chapter and offered during July and
August.

6. Tuition and maintenance rates established pursuant to this section,
once certified by the director of the budget, shall be used in all
contracts for the provision of programs and services for which such
rates were established, provided, however, that the commissioner shall
prorate the amount to be paid for an individual pupil enrolled for a
period of time which is less than the full period of time approved for
such program or services.