Excess Teacher Turnover Prevention Grants
The Grant and Tuition Rates
The grant process used by the Rate Setting Unit is designed to provide funding to qualifying providers which allows them to add teacher compensation enhancement costs into their long‑term cost structure so that those costs will be included in the calculation of future tuition rates. Based on how the rate setting process works, it requires two school‑year periods to work these costs into the rate structure. If the additional costs are not added into the cost structure for two consecutive years, the amounts will "fall out" of the rates. In order to accomplish this, the same amount is advanced to the providers up front, in the form of a check or electronic funds transfer (EFT), for two consecutive school years.
By doing this, the additional compensation costs from the first year (e.g., 2000/01), paid for with a check or EFT, are built into the financial data of the first year (e.g. 2000/01). Additionally, since the third year's prospective rate (e.g. 2002/03) is based on the first year's financial data (e.g. 2000/01), it is built into the third year's (e.g. 2002/03) prospective rate. This allows the provider to continue to incur the costs going forward. Then, with the award amount repeating the following year, the additional compensation costs from the second year (e.g., 2001/02), paid for with the check or EFT, are built into the financial data of the second year (e.g. 2001/02). Additionally, since the fourth year's prospective rate (e.g. 2003/04) is based on the second year's financial data (e.g. 2001/02), it is built into the fourth year's (e.g. 2003/04) prospective rate. Again, this allows the provider to continue to incur the costs going forward. Where applicable, total cost screen waivers, up to the amount of the appropriate year’s grant award, are given automatically so that the additional costs are not screened out of the tuition rates.
Please note that the same amount is awarded for two consecutive years, in the form of a check or EFT, in order to build the costs into future tuition rates permanently once. So, if an award check is given to a provider in the amount of $10,000 for two consecutive years, it results in $10,000 being built into future tuition rates permanently (as long as the provider continues to spend it), not $20,000.
If the provider is awarded a grant for a new two‑year cycle (e.g., Cycle 2 ‑ the 2002/03 and 2003/04 school years), they would receive a check or EFT in the 2002/03 and 2003/04 school years for the new amounts in order to build more teacher compensation costs into their rates on top of what is already built into their rates from the first cycle (2000/01 and 2001/02 above). The process outlined above for years 1 and 3 (2000/01 and 2002/03), would repeat with the new grant amount for years 3 and 5 (2002/03 and 2004/05). But, the provider would now also have the year 1 (2000/01) amount built into the rate, which they would receive when they bill for students. Then the process outlined above for years two and four (2001/02 and 2003/04) will repeat with the new grant amount for years four and six (2003/04 and 2005/06). And the provider would also have the year two (2001/02) amount (same as the year 1 amount) already built into the rate, which they would receive when they bill for students.
This process would repeat as long as additional cycles are approved. Each new two year cycle results in the award amount being permanently added into the tuition rates once.
Example:
ABC school is awarded the following:
2000/01 = Cycle 1 ‑ Year 1 = $10,000
2001/02 = Cycle 1 ‑ Year 2 = $10,000
2002/03 = Cycle 2 ‑ Year 1 = $15,000
2003/04 = Cycle 2 ‑ Year 2 = $15,000
2004/05 = Cycle 3 ‑ Year 1 = $20,000
2005/06 = Cycle 3 ‑ Year 2 = $20,000
2006/07 = Cycle 4 ‑ Year 1 = $18,000
2007/08 = Cycle 4 ‑ Year 2 = $18,000
2000/01: agency receives a check or EFT for $10,000.
2001/02: agency receives a check or EFT for $10,000.
This would result in $10,000 added to the tuition rates permanently
through billing in future years, starting in the 2002/03 prospective tuition
rate.
2002/03: agency receives a check or EFT for $15,000 and there is $10,000
in the tuition rate from Cycle 1.
2003/04: agency receives a check or EFT for $15,000 and there
is $10,000 in the tuition rate from Cycle 1.
The agency would now have $25,000 added to the tuition rates
permanently through billing in future years.
2004/05: agency receives a check or EFT for $20,000 and there is $25,000
in the tuition rate from Cycles 1 & 2.
2005/06: agency receives a check or EFT for $20,000 and there
is $25,000 in the tuition rate from Cycles 1 & 2.
The agency would now have $45,000 added to the tuition rates
permanently through billing in future years.
2006/07: agency receives a check or EFT for $18,000 and there is $45,000
in the tuition rate from Cycles 1, 2 & 3.
2007/08: agency receives a check or EFT for $18,000 and there
is $45,000 in the tuition rate from Cycles 1, 2 & 3.
The agency would now have $63,000 added to the rates permanently
through billing in future years.
At that point, even if the grant program ended, the provider would continue to have the $63,000, plus any rate growth percentages given, permanently in their rate, as long as they continued to incur the costs in teacher compensation enhancements.