[Busmgrs] HB 5055, section 9: $13.8 million for Special Education MOE Q & A

[WILTFONG Michael]

HB 5055, section 9 Q&A
Fund Source Questions:
*       Is this funding part of IDEA funding (additional) or general fund (additional)?
*       Is this additional amount to be distributed through the State School Fund in addition to the full IDEA grant?

1.      The $13.8 million appropriated by the Legislature under section 9 in HB 5055 (2011) is additional General Fund. It is not distributed through the normal State School Fund formula. It has its own formula as described in the bill.

Timing Questions:
*       Is this a one-time appropriation? Or will this be continued into future years?
*       When is it to be spent by?  Do I need to reclassify 10-11 expenditures to those monies or can it carry over to 11-12?
*       When will we be receiving the funds?
*       Do funds have to be used in the 2010-11 year or can they be used for special ed in 2011-12?
*       What is the ending date for these funds?

2.      These funds are one-time funds made available in the 2010-11 school year so that the State could meet state-level maintenance-of-effort requirements. The funds may be carried over into 2011-12. The payments should have been received in your pool account on June 28, 2011. There is no ending date, nor any reporting requirements beyond normal accounting practices, for the use of these funds identified in the bill.

Tracking/Reporting Questions:
*       Do I have to record the expenditures separately and report on it?
*       Can the district account for the funds in a special revenue fund?
*       The funds are supposed to be used for special ed. Is that a strong encouragement (not a mandate)?

3.      There is no requirement in HB 5055 to record or report on expenditures separately. For consistency sake, the Department of Education (ODE) is requiring school districts to record these funds under the General Fund and use Source Code 3299 - Other Restricted Grants-in-aid. The bill does state the funds are to be allocated to school districts for the exclusive purpose of providing special education and related services. The language in the bill was written in a manner that removed any question as to what the funds were intended for, and removed any discretion in how the ODE distributed these funds. Due to the exclusive nature of the funding, the additional resources might free up other funds that otherwise would have been used for special education to meet your maintenance-of-effort, but now can be used for other purposes.

MOE Questions
*       Does this legislative plan potentially increase MOE for all LEAs across the state at a level they will have to maintain after this fiscal year?
*       Will these expenditures be included in MOE calculations?
*       If we have met our MOE already, what are our options with this funding?

4.      The impact that these funds has on MOE is dependent on how and when a school district decides to expend the funds, how the funds are coded, and how the district decides to expend other General Fund revenues. Consider these funds as though they were received from the special education weighting in the State School Fund, in that they are to be used to provide FAPE and assist with your special education maintenance-of-effort.

If you should have further questions, please contact:
Mike Wiltfong
Director of School Finance
Office of Finance and Administration
Michael.Wiltfong at state.or.us<file:///C:\Documents%20and%20Settings\wiltfonM\Local%20Settings\Temporary%20Internet%20Files\Content.Outlook\X59J2LJ0\Michael.Wiltfong@state.or.us>


Steve Smith
Director of Operations
Office of Student Learning & Partnerships
Steve.W.Smith at state.or.us<mailto:Steve.W.Smith at state.or.us>







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