To: District Superintendents,
Superintendents and Executive Directors of Approved Programs Serving Students
with Disabilities, School District and County
Officials
From: Brian
Zawistowski
Subject: Tuition Rate
Setting Methodology for 2020-21 Rates for School-Age Providers Serving Students
with Disabilities
Date: April 28,
2021
This memorandum communicates the 2020-21 tuition rate setting methodology
to providers operating school-age programs receiving funding under Article 81
and/or Article 89 of the Education Law.
The 2020-21 tuition rate setting methodology provides a 0.0 percent
trend factor for the 2020-21 school year and includes modifications to enhance
funding stability for private and special act school district school-age
providers serving students with disabilities.
Section I: General Rate Setting Methodology
The following methodology components may be used in whole
or in part, pursuant to Section 200.9 of the Regulations of the Commissioner,
to establish the 2020-21 tuition rates. Generally, the 2020-21 tuition
rates for programs that were in operation during the 2018-19 school year are
based on reported 2018-19 financial data. Any approved appeal items from
prior and current school years will be reviewed and, if appropriate, included
in the calculation of the 2020-21 rate. As in previous years, each
provider’s financial data is reviewed by staff of the Rate Setting Unit (RSU)
and any necessary adjustments are made in accordance with Section 200.9 of the
Commissioner’s Regulations and the Reimbursable Cost Manual (RCM), as
applicable. This process is completed prior to the application of cost
screens. The basic components of the tuition rate setting methodology and
various factors used to calculate the 2020-21 tuition rates are described
below:
A. Prospective Trend Factor -
School-Age Programs
A 0.0 percent trend factor is approved for the 2020-21 school year for
school-age programs. A factor of 3.6 percent which represents the
compounding of the approved prospective trend factors of 3.6 percent for the
2019-20 and 0.0 percent for the 2020-21 school years is applied to reimbursable
2018-19 base year direct care and non-direct care costs, excluding interest,
depreciation, and expenses related to one-time waivers as appropriate.
B. Non-direct Care Cost
Parameter
The non-direct care cost parameter limits the amount of
non-direct care costs that will be reimbursed through the tuition rate to 30
percent of the reimbursable costs after adjustments. The reimbursable
limit for non-direct care costs can be calculated by multiplying adjusted direct
care costs by .4286, which is the ratio of 30/70 for non-direct care/direct
care costs.
C. Applied Revenues
Applied revenues will be subtracted from total adjusted costs after the
application of the non-direct care cost parameter.
Extraordinary federal aid received by
providers, including but not limited to federal Paycheck Protection Program
(PPP) and Emergency Assistance to Non-Public Schools (EANS) revenue, shall be
treated as offsetting revenue for 2020-21 reconciliation tuition rate calculations,
with providers’ prospective rates in future years held harmless from the impact
of extraordinary federal aid offset against expenses in a prior year’s tuition
rate.
D. Total Cost Screen
1.
The hold-harmless component of the total cost screen is
not applied in the calculation of 2020-21 tuition rates for school-age
programs.
2.
For the 2020-21 Prospective Rate:
i.
The 2018-19 reconciliation per diem rate plus 3.6 percent
or
ii.
The 2019-20 prospective per diem rate plus 0.0 percent.
b.
For public and BOCES school-age providers that operate
summer only programs, the 2020-21 prospective per diem rate cannot exceed the 2018-19
reconciliation per diem rate plus 3.6 percent.
3.
For the 2020-21 Reconciliation Rate:
a.
For private and special act school district school-age
programs:
i.
In most cases, the 2020-21 reconciliation per diem rate
cannot exceed the greater of:
1. The 2019-20
reconciliation per diem rate plus 0.0 percent or
2. The 2020-21
prospective per diem rate.
ii.
If the 2020-21 enrollment-to-capacity percent decreases
by five (5) percentage points or more from the 2016-17 through 2018-19
three-year average enrollment-to-capacity percent, then the 2020-21
reconciliation per diem rate cannot exceed the greater of:
1.
The 2019-20 reconciliation per diem rate plus 0.0
percent, plus per diem costs removed by the total cost screen that are added
back by using the lesser of the 2016-17 through 2018-19 three-year average
enrollment-to-capacity percent or 95 percent of reported enrollment capacity
care days in the total cost screen calculation, or
2.
The 2020-21 prospective per diem rate, plus per diem
costs removed by the total cost screen that are added back by using the lesser
of the 2016-17 through 2018-19 three-year average enrollment-to-capacity
percent or 95 percent of reported enrollment capacity care days in the total
cost screen calculation.
Using the 2016-17 through 2018-19 three-year
average enrollment-to-capacity percent will not be applied if the school-age
program does not have an approved reconciliation rate for the 2016-17 through
2018-19 years.
iii.
In either calculation of the reconciliation rate total
cost screen under (i) or (ii) described above, the Department reserves the
right to apply 1. if the application of 2. would result in an inappropriate
benefit, as determined by SED, under the circumstances applicable at the
time the reconciliation rate is being calculated.
b. For public and
BOCES school-age providers that operate summer only programs, the 2020-21
reconciliation per diem rate cannot exceed the 2019-20 reconciliation per diem
rate plus 0.0 percent.
E. 2020-21 Reconciliation
Process
The reconciliation process, as defined in Section 200.9 (f)(3)(iii) of the Commissioner’s
Regulations, will be applied in the calculation of the 2020-21 reconciliation
rates for all approved school-age programs with the additional provisions as
follows:
1. Approved
school-age special class programs will have reconciliation rates issued unless
the 2020-21 reconciliation per diem rate differs from the 2020-21 prospective
per diem rate by less than 1 percent. If
the 2020-21 reconciliation per diem rate differs from the 2020-21 prospective
per diem rate by less than 1 percent, then the 2020-21 prospective rate will
become the final rate subject to audit.
It is important to note that a 2020-21 reconciliation rate will be
calculated and certified in all instances where a school-age program has
operated and submitted complete financial reports to RSU; however, RSU will not
issue a 2020-21 reconciliation rate if it differs from the 2020-21
prospective per diem rate by less than 1 percent. Public notice will be given where a 2020-21
reconciliation rate is not being issued because it differs from the 2020-21
prospective per diem rate by less than 1 percent as RSU will post the following
statement in the RSU rate web posting: “reconciliation rate not issued, within
1% prospective, prospective rate is final rate subject to audit.”
2. The 2020-21
reconciliation rate calculated and certified will be the basis of 2021-22
reconciliation and 2022-23 prospective rate calculations, regardless of whether
the 2020-21 reconciliation rate was issued or not. Therefore, even when a 2020-21 reconciliation
rate is not issued, it is anticipated that each program will retrieve and
review their 2020-21 reconciliation rate on SEDFIN and use that reconciliation
rate for future budgeting purposes.
3. When an enrollment
adjustment factor is applied to the 2020-21 reconciliation rate, a 2020-21
reconciliation rate will be issued in all instances irrespective of whether the
2020-21 reconciliation rate exclusive of the enrollment adjustment factor
differs from the 2020-21 prospective per diem rate by less than 1 percent.
4. The 2020-21
reconciliation per diem to be used in the calculation of the 2021-22
reconciliation and 2022-23 prospective tuition rates will be exclusive of any
enrollment adjustment factor amount that may be added back to the 2020-21
reconciliation rate.
F. Excessive
Teacher Turnover Prevention Program
Additional funding for the Excessive Teacher Turnover
Prevention Program (ETTPP) for eligible school age programs is not available
for the 2020-21 school year. However,
the $8 million in ETTPP funding that was approved for both school-age and
preschool programs for the 2019-20 tuition rate year will be carried forward
into the 2020-21 prospective tuition rates.
Reconciliation Glossary
·
“Reconciliation tuition rate per diem” is the per care
day rate after adjustments to reported costs made on desk review, and after
offsetting applied revenues and application of the non-direct care cost
parameter and the total cost screen.
·
“Regional weighted average per diem” used in the 2020-21
reconciliation process is the weighted average per diem for full-day segregated
special class programs operating at greater than 2.5 hours and are equal to the approved 2019-20 rates plus 0.0% growth.
·
“Reported
enrollment capacity care days” is the number of students per the approved
classroom ratio multiplied by the operated number of classrooms multiplied by
the number of session days.
·
“Enrollment-to-capacity percent” is total care days used
in the tuition rate calculation divided by reported enrollment capacity care
days.
·
“Three-year average enrollment-to-capacity percent” is
the sum of the total care days for the 2016-17 through 2018-19 report years
divided by the sum of the reported enrollment capacity care days for the
2016-17 through 2018-19 report years.
·
“Enrollment Adjustment Factor” is the per diem costs
removed by the total cost screen in the reconciliation rate that are added back
by using the lesser of the three-year average enrollment-to-capacity percent or
95 percent of reported enrollment capacity care days in the total cost screen
calculation.
Section II. Specific
Provisions to the Rate Setting Methodology
A.
Special Class Programs - Tuition Rates for Initial Years of Operation Pursuant
to Section 200.9 (f)(2)(viii) of the Regulations of the Commissioner of
Education.
1.
Special class programs that operated initially in 2018-19
will have the prospective tuition rate and reconciliation tuition rate for 2020-21
established using the general rate setting methodology detailed in Section I of
this memo based on required financial statements and reports.
2.
Special class programs that operated initially in 2019-20
will have the prospective tuition rate for 2020-21 established at the 2019-20
prospective tuition rate with no trend applied. For 2020-21 reconciliation:
a. Private and
Special Act School Districts - the program’s per diem rate will be limited to
the lower of: (i) the per diem based on the school’s reimbursable costs; or
(ii) the higher of the 2019-20 reconciliation per diem rate plus 0.0 percent
trend factor or the 2020-21 prospective per diem rate.
b. Public School
District and BOCES 2 month – the program’s per diem rate will be limited to the
lower of the per diem based on the school’s reimbursable costs or the 2019-20
reconciliation per diem rate plus 0.0 percent trend factor.
3.
Special class programs that are seeking initial approval
in 2020-21 will receive prospective tuition rates based on the 2020-21 regional
weighted average per diem tuition rate. For 2020-21 reconciliation, the
program’s per diem rate will be held to the lower of the per diem based on the
school’s reimbursable costs or the 2020-21 regional weighted average per diem
rate.
Notwithstanding the above provisions, approved private
special class programs will be subject to the provisions of Section 200.9
(f)(2)(viii) of the Commissioner’s Regulations.
This section of the Regulations states that if a new approved private
special class program’s student enrollment is not equal to or greater than the
minimum number required in Section 200.7 (c)(3), then that program shall
continue to receive the regional weighted average per diem tuition rate for the
rate year until such time that the program's actual base year enrollment equals
or exceeds the required minimum number of full-time-equivalent students.
“Regional weighted average per diem” used in the 2020-21
reconciliation process is the weighted average per diem developed on a regional
basis for 2 month only and 10 or 12 month segregated special class programs and
can be found in Attachment II. Separate 2020-21 regional weighted average per
diem tuition rates shall be used for school-age 2-month only and 10 or 12-month
programs. The 2020-21 rates equal the
approved 2019-20 rates plus 0.0% growth.
B. 1:1 Aide Add-On Rates
The 2020-21 regional weighted average 1:1 aide add-on
rates are listed in Attachment III. These will be added to the approved
tuition rate(s) of the program in which the student is enrolled. The 2020-21
1:1 aide add-on rates are not subject to reconciliation. The 2020-21 rates are based on 2019-20 regional rates plus 0.0%
growth.
For
the 2020-21 school year, state reimbursement will only be provided for 1:1
aides for days on which the aides actually provide(d) either in-person or
remote services consistent with the student's IEP. State reimbursement will not
be provided for days that 1:1 aides were laid off, furloughed, or did not
provide support services to students consistent with IEP requirements.
See: https://www.oms.nysed.gov/stac/stac_online_system/online_instructions/calculating_aide_percentages.html .
C. Minimum
Wage
2020-21 tuition rates may include additional funding for
compliance with the Minimum Wage Act (Article 19 of the New York State Labor
Law), which was signed into law on April 4, 2016. Approved private programs serving school-age
students with disabilities (chapter 853 schools) and Special Act School
Districts that submitted minimum wage survey data in December 2020 may be
eligible for a funding adjustment to 2020-21 tuition rates for minimum wage
impact.
D.
Interim Rates
For the 2020-21 school year, interim rates were issued to
approved programs, as warranted. These rates are in effect until the
prospective 2020-21 rates are calculated and approved. The interim rates
are intended to provide cash flow until the 2020-21 prospective tuition rates
are processed. Interim rates will be
posted at the Rate Setting Unit website at the following:
https://www.oms.nysed.gov/rsu/Rates_Methodology/Rates/home.html.
E. Reimbursement for July/August
Session Days
This is to remind all providers that consistent with
Section 4408 of Education Law, funding for school-age programs operated during
July and August of 2020 will be based on thirty days of service. Programs that operate more than thirty days
during July and August will only be funded for thirty days and will be subject
to total cost screens if they choose to operate longer sessions.
F. BOCES & Public
Summer School-Age Only Programs
School-Age July/August Home Instruction (9022-9024),
Related Service with Specialized Instruction (9025) and Specialized Instruction
(9029) are now combined with the previous Related Service Only programs under
program code 9015 and renamed School-Age Non-Special Class. This program
will be reimbursed using rates per ½-hour units of service, and subject to
verification within the reimbursement system.
The 2020-21 regional weighted average School-Age Non-Special Class rates
are listed on Attachment IV and are not subject to reconciliation.
G. Teacher Certification Funds
for 2020-21
Instructions and required forms for applying for these
monies will be available on the STAC website https://www.oms.nysed.gov/stac/. Please note that related costs and
revenues are to be reported in a separate program cost center, and not in any
rate program cost center. These monies are not to be used to increase
base year costs for future rate setting.
H. Raise The
Age Initiative
SED will issue under separate cover guidance
on how the impact of the Raise The Age initiative will be treated with respect
to 2020-21 tuition rates.
I. Reimbursable
Cost Manual and Rate Setting Unit Contact
Information
The July 2020 edition of the RCM, which defines reimbursable costs for the 2020-21
school year, is available at the Rate Setting Unit’s website:
https://www.oms.nysed.gov/rsu/Manuals_Forms/Manuals/RCM/home.html
Inquiries regarding 2020-21 tuition rates should be directed to the RSU
staff accountant who is assigned to process the school’s 2018-19 financial
reports. RSU staff telephone numbers and e-mail addresses are available
at the Rate Setting Unit’s Website at https://www.oms.nysed.gov/rsu/Contact_Us/employees.html
2018-19 RSU staff school assignments are available at the Rate Setting
Unit’s Website at:
https://www.oms.nysed.gov/rsu/Contact_Us/SchoolAssignments.html
The general RSU office information is listed below:
New York State Education Department
Rate Setting Unit
Albany, New York 12234
Phone: (518) 474-3227
Fax: (518) 486-3606
·
Attachment
I: 2020-21 Reconciliation Process
·
Attachment
II: 2020-21 Regional Weighted Average Per
Diem Tuition Rates
·
Attachment
III: 2020-21 1:1 Aide Add-on Rates
· Attachment IV: 2020-21 School-Age Non-Special Class Regional Rates