Calculating 10-Month “Annualized Cost” Education Rates for School Age
Students with Disabilities Educated in a District-Operated Program

To calculate the 9/1 – 6/30 "10-Month Annualized Cost" for an In-District High Cost school age student, include only the cost of direct special education services provided to the student according to his/her "Individualized Education Plan" (IEP).  These costs are as follows:

Costs which may be included in the "Annualized Cost" Calculation for In-District Student Placements

  1. Pro-rata share of special education classroom/consultant teacher salary & fringe benefits;
  2. Pro-rata share of special education classroom/individual aide salary plus fringe benefits;
  3. Pro-rata share of special education certified teaching assistant salary plus fringe benefits:
  4. Pro-rata share of special education related services specified on the student IEP;
  5. Cost of assistive technology devices/services used by just this child.

Costs excluded from "Annualized Cost" Calculation for In-District Student Placements

None of the following costs may be included on an In-District High Cost Public STAC:

  1. Non-Resident Tuition Worksheet base grade level and special education rates are excluded;
  2. Special education transportation costs are excluded;
  3. CSE or Pupil Personnel Services salary and fringe benefits are excluded;
  4. Evaluation costs are excluded;
  5. Regular education teacher salary and fringe benefit costs are excluded;
  6. District administrative or building overhead costs are excluded;
  7. Due process (impartial hearing) costs are excluded;
  8. Costs for non-special education or indirect services are excluded;
  9. Costs for permanent building fixtures/equipment (like a strobe light fire alarm system);
  10. Home & hospital instruction provided on weekends, holidays, and during school year vacations is excluded;
  11. Services provided that were not included on the IEP or which exceed the level (individual vs. group) or frequency of service specified on the IEP;
  12. Special education costs claimed for aid on a federal grant are excluded

Newly added*

  1. * "Adult Support" and "Adult Supervision" are excluded;

Additional guidelines for inclusion or exclusion of services in "Annualized Cost" calculation

  1. Aides, nurses, and interpreters must be excluded unless the student's IEP clearly defines the type, staffing ratio, frequency, and duration
  2. Services provided after the regular school day must be excluded unless the student's IEP clearly defines what special education services are being provider, whether the services are provided individually or in a small group setting, and the duration of each of those services. Districts should avoid vague descriptions on IEPs such as:
    • "Extended School Day" or "Extended School Hours"
    • "Home-Based Services" or "Home Instruction"
  3. Recreation therapy must be excluded unless the student's IEP clearly defines what specific treatments are being provided, staffing ratio, frequency, and duration of those services, and the narrative outlines how the recreation therapy is furthering the student's educational needs.

In-District Student "10-Month Annualized Cost" Example:

John was enrolled in a 6:1:1 10-month special education class.  There were only 5 students enrolled in that class and John was enrolled for 30 out of the 40 weeks. The special education teacher and classroom aide had combined salaries and fringes for the 30 weeks of $150,000 and $50,000. John also received $4,500 in related services, and his IEP required an assistive-technology device costing $2,500.

Sample calculation
  $30,000 Salary (1/5th of $150,000)
+ $10,000 Fringe Benefits (1/5 of $50,000)
+ $4,500 Related Services  
  $44,500 Actual Cost Before Assistive Tech.  
÷ 0.750 FTE Enrollment (30 wks/40 wks)
  $59,333 Annualized Cost Before Assist. Tech.  
+ 2,500 Assistive Technology Device  
  $61,833 10-Month Annualized Cost  
Last Updated: August 26, 2019