To: District Superintendents, Superintendents and Executive
Directors of Approved Preschool Programs Serving Students with Disabilities, School District and County Officials
From: Brian
Zawistowski
Subject: Tuition Rate
Setting Methodology for 2021-22 Tuition Rates for Preschool Students with
Disabilities
Date: February
15, 2022
Section I: Rate Setting Methodology –
Special Class and Special Class Integrated Setting (SCIS) Programs
The 2021-22 tuition
rate setting methodology for Special Class and Special Class in an Integrated
Setting programs continues the rate reform introduced in 2018-19 which will
provide additional flexibility in how maximum tuition rates are
calculated. Please see the Total Cost
Screen item (D.) of this section for more information. In addition, the 2021-22 methodology
continues to include the benefit introduced in 2018-19 for Special Class in an
Integrated Setting programs of using the actual revenue earned, rather than an
expected amount based on child care subsidy rates,
when applying a revenue offset to their reported expenses. This measure more accurately reflects the
funding received by these programs and prevents rate reductions based on
revenue that is not actually realized.
Furthermore, the 2021-22 tuition methodology provides
relief for preschool special class and SCIS programs that experienced
significant enrollment decreases due to the
pandemic. The enrollment adjustment factor rate reform that was previously
approved for school age providers has been expanded to private preschool
providers who experience a seven and one half (7.5) percentage point decrease
in enrollment as a percentage of operating capacity as compared to the 2016-17
through 2018-19 average enrollment percentage.
Please see item D of this section for further details on the application
of the enrollment adjustment factor.
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 2021-22 tuition rates for approved preschool special class and
special class in an integrated setting programs.
Generally, the 2021-22 tuition rates for programs that were in operation during
the 2019-20 school year are based on reported 2019-20 financial data. Any
approved appeal items from prior and current school years will be reviewed and,
if appropriate, included in the calculation of the 2021-22 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 2021-22 tuition
rates for special class and special class integrated programs are described
below:
A.
Prospective Trend Factor
A 4.0 percent trend factor is approved for the 2021-22 school year for
preschool special class and special class in an integrated setting programs. A factor of 4.0 percent which
represents the compounding of the approved prospective trend factors of 0.0
percent for the 2020-21 and 4.0 percent for the 2021-22 school years is applied
to reimbursable 2019-20 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. Provided that, NYSED will initiate rulemaking
to amend the revenue offset provision of 8
NYCRR §200.9 (f)(2)(x)(b) to reflect that 2021-22 Special Class in an
Integrated Setting program tuition rates will be reduced by the actual revenues
earned for students without disabilities for the tuition rate year.
Extraordinary
federal aid received by providers, including but not limited to federal
Paycheck Protection Program (PPP), will be treated as offsetting revenue for
2021-22 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 2021-22
tuition rates for preschool programs.
2.
The 2021-22
prospective tuition rate per diem cannot exceed the greater of:
a.
The 2019-20 reconciliation per diem rate plus 4.0
percent.
b.
The 2020-21 prospective per diem rate plus 4.0 percent.
The Department reserves the right to
apply the 2019-20 reconciliation per diem rate plus 4.0 percent if the
application of the 2020-21 prospective per diem rate plus 4.0 percent would
result in inappropriate benefit, as determined by SED, under the specific
circumstances applicable at the time the reconciliation rate is being
calculated.
3.
2021-22
reconciliation tuition rate per diem
a.
In most cases, the 2021-22 reconciliation per diem rate
cannot exceed the greater of:
i.
The 2020-21 reconciliation per diem rate plus 4.0 percent
or
ii.
The 2021-22 prospective per diem rate.
b.
If the 2021-22 enrollment-to-capacity percent decreases
by seven and one half (7.5) percentage points or more from the 2016-17 through
2018-19 three-year average enrollment-to-capacity percent, then the 2021-22
reconciliation per diem rate cannot exceed the greater of:
i.
The 2020-21 reconciliation per diem rate plus 4.0
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 92.5 percent of reported enrollment capacity
care days in the total cost screen calculation, or
ii.
The 2021-22 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 92.5 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 preschool
program does not have an approved reconciliation rate for the 2016-17 through
2018-19 years.
c.
In either calculation of the reconciliation rate total
cost screen under (a) or (b) described above, the Department reserves the right
to apply (i) if the application of (ii) would result in an inappropriate
benefit, as determined by SED, under the circumstances applicable at the
time the reconciliation rate is being calculated.
E.
2021-22 Reconciliation Process
The reconciliation process, as defined in Section 200.9 (f)(3)(iii) of the Commissioner’s
Regulations, will be applied in the reconciliation of the 2021-22 school year
costs for all approved Special Class and Special Class Integrated Setting
programs in accordance with the total cost screen provisions outlined in (D.3)
of this section with the additional provisions as follows:
1. Approved Preschool
Special Class and Special Class Integrated Setting programs will have
reconciliation rates issued unless the 2021-22 reconciliation per diem rate
differs from the 2021-22 prospective per diem rate by less than 1 percent. If the 2021-22 reconciliation per diem rate
differs from the 2021-22 prospective per diem rate by less than 1 percent, then
the 2021-22 prospective rate will become the final rate subject to audit. It is important to note that a 2021-22
reconciliation rate will be calculated and certified in all instances where a preschool
program has operated and submitted complete financial reports to RSU; however,
RSU will not issue a 2021-22 reconciliation rate if it differs from the
2021-22 prospective per diem rate by less than 1 percent. Public notice will be given where a 2021-22
reconciliation rate is not being issued because it differs from the 2021-22
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 2021-22
reconciliation rate calculated and certified will be the basis of 2022-23
reconciliation and 2023-24 prospective rate calculations, regardless of whether
the 2021-22 reconciliation rate was issued or not. Therefore, even when a 2021-22 reconciliation
rate is not issued, it is anticipated that each program will retrieve and
review their 2021-22 reconciliation rate on SEDFIN and use that reconciliation
rate for future budgeting purposes.
3. When an enrollment
adjustment factor is applied to the 2021-22 reconciliation rate, a 2021-22
reconciliation rate will be issued in all instances irrespective of whether the
2021-22 reconciliation rate exclusive of the enrollment adjustment factor
differs from the 2021-22 prospective per diem rate by less than 1 percent.
4. The 2021-22
reconciliation per diem to be used in the calculation of the 2022-23
reconciliation and 2023-24 prospective tuition rates will be exclusive of any
enrollment adjustment factor amount that may be added back to the 2021-22
reconciliation rate.
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 2021-22
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 2020-21 rates plus 4.0% 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
92.5 percent of reported enrollment capacity care days in the total cost screen
calculation.
F. Excessive
Teacher Turnover Prevention Program
Funding for the Excessive Teacher Turnover Prevention
Program (ETTPP) for eligible school programs will be directly incorporated into
the 2021-22 prospective tuition rates for qualifying providers. The distribution of the funding will be
provided to eligible programs whose average teacher salary are below the median
salary provided for similarly qualified teachers in public schools in the
region in which their agency is located.
The allocation to each qualifying program will be calculated based on
the number of weighted full-time equivalent (FTE) calculated as follows:
1.
The
total number of weighted FTE will be determined by multiplying the actual
number of FTE teachers (based on a three-year average
of historical data submitted in program’s cost reports) providing classroom
instruction in each program by:
a.
A
factor of 2.0 for those programs where average teacher salaries are 50% or less
of those in public schools located in the same geographic region;
b.
A
factor of 1.5 for those programs where average teacher salaries are greater
than 50% but 75% or less than those in public schools located in the same
geographic region; or
c.
A
factor of 1.0 for those programs where average teacher salaries are greater
than 75% but 100% or less than those in public schools located in the same
geographic region.
Programs where average teacher salaries equal or exceed
regional 50th percentile special education teacher salaries are not
eligible for a rate adjustment.
Distribution of $8 million for school-age and preschool programs will be
calculated for 2021-22.
Each program receiving ETTPP funding will be notified of
the total dollar amount added to their 2021-22 prospective rate. A Chief Administrator’s Certification
statement will be needed to attest to the total dollar amount of funding spent
to supplement teacher compensation with an assurance statement that this amount
will continue to be used for this purpose. Upon reconciliation, if a program is
impacted by a total cost screen, a total cost screen waiver up to the amount of the total cost
screen will be applied as part of approved methodology equal to the allowable 2021-22
ETTPP expenditure as certified by the program. Upon review of such reports, annual cost
reports, or as a result of field audit, if SED
determines funds were not spent in compliance with stated purpose of supplemental
teacher compensation, such expenditures will be recouped via a reconciliation
rate or a final audit rate.
G. 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 2019-20 will have the prospective and
reconciliation tuition rates for 2021-22 established using the general rate
setting methodology detailed in this memo based on required financial
statements and reports.
2.
Special class
programs that operated initially in 2020-21 will have the prospective tuition
rate for 2021-22 established at the 2020-21 prospective tuition rate with no
trend applied. For 2021-22
reconciliation, 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 2020-21 reconciliation per diem rate plus 4.0 percent trend factor or
the 2021-22 prospective per diem rate.
3.
Special class
programs that are seeking initial approval in 2021-22 will receive prospective
tuition rates based on the 2021-22 regional weighted average per diem tuition
rate. For 2021-22 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 2021-22
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 2021-22 reconciliation
process is the weighted average per diem developed on a regional basis for full
and half-day segregated special class programs and can be found in Attachment
I. Separate regional weighted average
per diem tuition rates shall be used for preschool half-day and full-day
programs. The 2021-22 rates equal the
approved 2020-21 rates plus 4.0% growth.
H. Preschool
Special Class in an Integrated Setting Programs - Tuition Rates for Initial
Years of Operation
1.
Special class in
an integrated setting programs that operated in 2019-20 with both preschool
students with disabilities and students without disabilities who are enrolled
in the same program, will receive 2021-22 prospective and reconciliation
tuition rates using the general rate setting methodology detailed in this memo
based on 2019-20 financial statements and reports. After application of the non-direct care cost
parameter, reported expenditures are reduced by the actual revenues earned for
students without disabilities. The total
cost screen is then applied to the resulting expenditures to determine the
total reimbursable costs for the preschool students with disabilities.
2.
Special class in
an integrated setting programs that operated initially in 2020-21 will have the
prospective tuition rate for 2021-22 established at the 2020-21 prospective
rate with no trend applied. For 2021-22
reconciliation, 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 2020-21 reconciliation per diem rate plus 4.0 percent trend factor or
the 2021-22 prospective per diem rate.
3.
Special class in
an integrated setting programs seeking initial approval in 2021-22 will have
the established 2021-22 reimbursement methodology applied to the submitted
budgetary data. Related statistical and
historical data for other approved programs operated by a provider or similar
programs operated by other providers may also be used to establish rates for
these newly approved programs. For 2021-22
reconciliation, 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 2021-22 prospective
budget-based tuition rate.
I.
Interim Rates for Special Class and Special Class Integrated Programs
For the 2021-22 school year, interim rates were issued to
approved programs, as warranted. These rates are in effect until the
prospective 2021-22 rates are calculated and approved. The interim rates
are intended to provide cash flow until the 2021-22 prospective tuition rates
are issued. Interim rates are posted at
the Rate Setting Unit website at the following:
http://www.oms.nysed.gov/rsu/Rates_Methodology/Rates/home.html.
J. 1:1 Aide Add-On Rates
The 2021-22 regional weighted average 1:1 aide add-on rates are listed in Attachment II. These rates will be
added to the approved tuition rate(s) of the program in which the student is
enrolled. The 2021-22 1:1 aide add-on rates are not subject to reconciliation. The 2021-22 rates are based on
2020-21 regional rates plus 4.0% growth.
K. Minimum
Wage
2021-22 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 preschool special class and
SCIS programs that submitted minimum wage survey data in December 2020 may be
eligible for a funding adjustment to 2021-22 tuition rates for minimum wage
impact.
Section
II. Rate Setting Methodology – Special
Education Itinerant Services
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 2021-22 tuition rates for approved programs providing special education
itinerant services (SEIS) to preschool students with disabilities, as defined
in Section 200.16 (i)(3)(ii) of the Regulations.
Rates for SEIS programs are established as half-hour
rates and billing by programs to municipalities must be done in half-hour units
of time. Pursuant
to Chapter 56 of the Laws of 2014, and section 200.9(f)(2)(ix)(d) of the
Regulations of the Commissioner, 2021-22 SEIS
rates are to be paid for each unit of service delivered, not to exceed the
recommendations for such services in the student’s individualized education
program (IEP). See Policy on Make-Up
Services of Missed Special Education Itinerant Services (SEIS) Sessions in the
October 2015 Field Advisory:
Pursuant
to Chapter 56 of the Laws of 2015, the 2018-19 SEIS
rates represented the fourth year of the four-year phase-in to regional tuition
rates based on average actual costs. The
regions designated for the SEIS regional rates are the labor force regions of New
York State, which are used in the calculation of the 2012 regional cost index, and are listed in Attachment III. Each SEIS program’s regional rate is based on
the region in which its program administrative office is located.
A. 2021-22 Regional Rates for Individual
Sessions
The
2021-22 SEIS individual rates are based on the 2020-21 rates with a 4.0%
trend factor applied. The 2021-22 Individual Session
regional rates are listed in Attachment V of this memo.
B. 2021-22 Regional Rates for Group Sessions
In
instances where the IEP indicates that the student may receive group SEIS, the
SEIS provider is to bill for each session at the applicable regional group rate
corresponding to the number of students in attendance in the group when the service
is provided. For example, if SEIS is
delivered to a group of three students, the program may bill at the applicable
group regional rate for three students in attendance, prorated equally among
the students in attendance, and then bill to the appropriate municipality based
on each student’s municipality of residence.
If SEIS is delivered to a group of two students, the applicable group
regional rate for two students in attendance is to be prorated equally among
the two students and then billed to the appropriate municipality based on each
student’s municipality of residence. In
the case where SEIS is provided to one student, the provider is to bill at the
group regional rate for one student in attendance, which is equivalent to the
SEIS regional rate for the region where the provider’s administration offices
are located.
The
2021-22 SEIS group rates are based on the 2020-21 SEIS group
regional rates with a 4.0% trend factor applied. The 2021-22 Group Session
regional rates are listed in Attachment V of this memo.
C. Programs
Granted Initial Approval in 2021-22
SEIS programs granted initial approval
in 2021-22 will have their individual and group SEIS 2021-22 rate established
at the SEIS regional rate applicable to the region in which their
administration offices are located.
D. 2021-22 Reconciliation Process
The 2021-22 SEIS regional rates will not be subject to
reconciliation.
E. Rates Based on Audit
The 2021-22 SEIS regional rates shall be subject to adjustment based on a final audit of actual
program expenses, revenues, enrollment and other
relevant program information. The final
audit report shall be used to establish tuition rates based on audit, which
shall not exceed a provider’s 2021-22 SEIS regional rate. The rates based on audit shall be developed
by the Commissioner and certified by the Director of the Budget. Upon the certification of rates based on
audit, any overpayment will be reimbursed to the appropriate municipality by
the approved program, or any underpayment will be paid by the appropriate
municipality to the approved program.
Any overpayment or underpayment to the appropriate municipality by the
state shall be adjusted accordingly upon certification of the rates based on
audit.
Section
III. Multidisciplinary
Evaluation Programs
A. Preschool Evaluation Rates
The 2021-22 school year Evaluation Rates are listed in Attachment IV.
Section IV. Teacher Certification Funds
A. Teacher Certification Funds
for 2021-22
Instructions and required forms for applying for these
monies will be available on the STAC website http://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.
Section V. Reimbursable Cost Manual and Rate Setting Unit Contact
Information
The July 2021 edition of the Reimbursable Cost Manual (RCM), which defines
reimbursable costs for the 2021-22 school year, is made available at the Rate
Setting Unit’s website: http://www.oms.nysed.gov/rsu/Manuals_Forms/Manuals/RCM/home.html
Inquiries regarding 2021-22 tuition rates should be
directed to the RSU staff accountant who is assigned to process the school’s
2019-20 financial reports. RSU staff telephone numbers and e-mail
addresses are available at the Rate Setting Unit’s Website at http://www.oms.nysed.gov/rsu/Contact_Us/employees.html
RSU staff school assignments are
available at the Rate Setting Unit’s Website at:
http://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
Room 302 Education Building
89 Washington Avenue
Albany, New York 12234
Phone: (518) 474-3227
Fax: (518) 486-3606
Enclosures:
·
Attachment
I: 2021-22 Regional Weighted Average Per Diem Tuition Rates
·
Attachment
II: 2021-22 Regional Weighted Average 1:1 Aide Add-On Rates
·
Attachment
III: 2012 Regional Cost Index – Revised Department of Labor Regions
·
Attachment
IV: 2021-22 Rates
Multidisciplinary Evaluation Programs
· Attachment V: 2021-22 SEIS Individual and Group Service Tuition Rates
· Attachment VI: 2021-22 Reconciliation Process