~ '-~ 

KANSAS 

OFFICE OF THE GOVERNOR 

June 30, 2010 

Anthony W. Miller 

Deputy Secretary of Education 

U.S. Department of Education 

400 Maryland Avenue, S.W. 

Washington. DC 20202-0500 

Dear Deputy Secretary Miller; 

Mark Parkinson, Governor 

www.governor.ks.gov 

This letter serves as an amendment and update to the Kansas level of state financial support for 

IDEA Part B, Students with Disabilities ages 3-21 for the FFY09 (2009-2010) fiscal year. During 

the past year, Kansas has communicated with the U.S. Department of Education and the Office 

of Special Education Programs (OSEP) regarding a Waiver Request for the FFY09 year which 

includes the following correspondence; 

May 22, 2009 - Kansas submits a Waiver Request for FFY09 

August 12, 2009 - Kansas submits Response to Questions - 8/05/09 conference call 

March 16. 2010- Kansas receives Waiver Request Response 

March 24, 2010 - Kansas submits Waiver Appeal 

In addition. on December 2,2009. OSEP published Memorandum 10-5 to clarify the 

requirements for calculating state level financial support for IDEA Part B. This amendment is 

necessary to provide year-end rather than anticipated state appropriations for FFY09 and use 

calculations based on OSEP's 10-5 Memorandum posted on December 2. 2009. 

Enclosed is the updated Kansas State Level of Financial Support, Part B IDEA Worksheet 

which outlines the finalized state appropriations and revised calculations for FFY08 and FFY09. 

In order to complete this worksheet, KSDE staff consisting of various teams within the agency, 

solicited other state agencies and gathered information regarding all financial support for 

students with disabilities ages 3-21 in Kansas along with the methodology used for generating 

the total amount of support. KSDE included in its calculation funds used in FFY08 and FFY09 

to administer and supervise the IDEA Part B program. KSDE also deducted special education 

funds that supported either Gifted services as mandated in Kansas under IDEA Part B and any 

funds reimbursed to districts for providing Part C services. 

Based on this revised calculation, the State of Kansas amends the FFY09 Waiver Request from 

$60,212,507 to $55,492,707. 

The updated Kansas state level of financial support for students with disabilities in FFY08 was 

$433,384,169 and in FFY09 was $377,891,462. This is a difference of $55,492,707 and reflects 

a decrease in fi~cal support of 12.8%. The May 22,2009 Waiver Request for FFY09, the 

August 12, 2009 Request to Questions, and the March 24,2010 Waiver Appeal letters provide 

in detail the basis for this reduction which was the result of a precipitous and unforeseen decline 

in state fiscal resources. 

Capitol Building, Room 2128, Topeka, K8 66612-1590 • (785) 296-3232 • Fax: (785) 296-7973 

e-mail: governor@ks.gov 
On March 16, 2010, Kansas received a response on the FFY09 Waiver Request from the U.S. 

Department of Education. In this letter, Kansas was granted a partial waiver for FFY09 in the 

amount of $44,486.326 which at the time was comparative to the percentage of reduction in the 

State General Fund between FFY08 to FFY09 of 10.4%. 

Enclosed is the final State General Fund Appropriation for FFY09 by agency. While further cuts 

to the State General Fund were necessary during the FFY09 year to balance the State's budget, 

funding for special education was preserved from any additional cuts. By the end of FFY09, the 

final State General Fund was decreased by 12.3% below the final amount allocated in FFY08. 

Below is a chart comparing the State's level of financial support for special education to the 

State General Fund for years FFY08 and FFY09. 

State General Fund Part B State Level of 

As of June 30, 2010 Final Revisions Financial Support 

FFY08 $6,163.802.845 $433.384,169 

FFY09 $5,408.055.522 $377.891.462 

Amount of Reduction $ 755,747,323 $55.492.707 

Percentage Reduction - FFY08 to 12.3% 12.8% FFY09 

It is important to note as outlined below, Kansas Legislature substantially increased the State's 

appropriation for special education in recent years prior to the FFY09 recession. This increased 

special education funding was Significantly above the percentage of increase in the State 

General Fund. Below is a chart comparing the annual appropriations allocated for distribution 

from KSDE for IDEA Part B to the State General Fund for years 2004-2005 through 2008-2009. 

State IDEA Part State General Special B State General Fund Fund Cumulative Fiscal Education Cumulative Appropriation Percentage Year Appropriation to Percentage 

the KSDE Increase Increase 

2004-05 $250.744,332 - 4,724,913,515 

2005-06 $292.471,391 16.6% 5.166,970 941 9%. 

~07 $334,003,604 33.2% 5.632,858,030 16% 

-08 $403,273,815 60.8% 6,138,866,753 23% 

2008-09 $427,753.137 70.6% 6,163.802,845 23% 

A concerted effort was made to minimize the reduction of special education state aid by utilizing 

the American Recovery and Reinvestment Act (ARRA) federal funds which together with state 

aid has resulted in only a 1 % reduction in FFY09. 

Overall, public education accounts for 65% of the total expenditures from the State General 

Fund. Elementary and secondary education accounts for 52% of the total expenditures while 

higher education accounts for the remaining 13%. Below is a chart which provides information 

on the KSDE approved budgets for FFY08 and FFY09 K-12 public education by program. 
KSDE Approved Budgets for State Fiscal Year 2008-2009 and 2009-2010 

Without ARRA Federal Funds 

FFY 2008 FFY 2009 

Program Approved Approved Difference , 

General State Aid 2,179,733,000 1,906,064,803 -12.6% 

Supplemental General State Aid 324,146,000 296,589.869 -8.5% 

School District Finance Fund 25.000,000 36,000,000 44.0% 

Capital Improvement Fund 75,379,000 86,700,000 15.0% 

Capital Outlay State Aid 22,600.000 - 0.0% 

Juvenile Detention Facilities 7,706,161 I 6,092.160 -:20.9% 

Declining Enrollment State Aid 50,000 - -100.0% 

Special Education Services 427,753,137 367,575,271 -14.1% 

Mentor Teacher Program 1,650,000 1,406,500 , -14.8% 

Professional Development 1,750,000 - -100.0% 

School Food Service Match 2.510,486 2,435.171 -3.0% 

Educable Deaf/Blind Program 110,000 110,000 0.0% 

Ag in the Classroom 35,000 35,000 0.0% 

Discretionary Grants 905,000 648,900 -28.3% 

Parent Education 7,567,000 7,539,500 -0.4% 

Pre-K Pilot 5,000.000 5,000,000 0.0% 

KPERS - Schools" 242,268,741 247,904,273 2.3% 

National Board Certification 285,000 62,169 -78.2% 

Vision Study Grant 100,000 - 0.0% 

School Safety Hotline 10,000 9,650 -3.5% 

Agency Operating Expenditures* 11,473,073 10,726,550 -6.5% 

Total 3,336,131,598 2,9,74,899,816 I -10.8% 

Kansas LEA - Meeting Local Effort Requirements 

I 

I 

I 

Nationally. Kansas has a unique history offunding education with state and local monies rather 

than federal dollars. According to the 2006 Public Education Finances published by the U.S. 

Census Bureau, (http://tto2.census.gov/govs/schooIl06f33pub.odO, the 2005-2006 per pupil 

expenditures in Kansas were $9,973. Of this total, 93% was funded through a combination of 

State (57%) or LEA (36%) local funds. The remaining $731 of expenditures (7.3%) was 

reported as federal funds. Only nine other states expend less federal funds per year for 

education. 

With the steady increase of state special education funding over the past 5 years in Kansas, 

LEAs have demonstrated fiscal management by accruing cash reserve balances to be 

accessed in times of economic hardship. The LEA cash reserve balances as reported to KSDE 

since 2004-2005 for special education has increased as state funding increased during the 

same time period. The chart below shows the aggregate total for all LEA cash reserve balances 

since 2004-2005 through 2008-2009. 
As Reported by Kansas Kansas LEA Cash Reserves Cumulative Increase in 

LEAs Cash Reserves 

July 1, 2004 146,140,030 

July 1. 2005 149,916,949 2.6% 

July 1, 2006 149,473.388 2.2% 

July 1,2007 172.186.083 17.4% 

July 1,2008 189.957.047 I 25.4% 

July 1,2009 207,456.050 32.3% 

KSDE has fully integrated fiscal accountability into general supervision which is referred to as 

the Kansas Integrated Accountability System, KIAS. As a result, KSDE has provided technical 

assistance to LEAs on the requirements of 34 C.F.R. §300.202(a)(3) and 

34 C.F.R. §300.203 which stipulate LEAs must supplement and not supplant state and local 

funds in using IDEA Part B federal funds and maintain local effort. Technical assistance on 

fiscal accountability is provided in a variety of ways specifically on meeting local maintenance of 

effort for FFY09 and includes dissemination of guidance documents, conference calls, individual 

LEA meetings with KSDE staff, and emails. 

A Free Appropriate Public Education (FAPE) • Meeting the Requirements of IDEA 

Kansas continues to make an extraordinarily good faith effort to meet all IDEA requirements. As 

shown below, the number of speCial education teachers and paraeducators has increased 

significantly since FFY04 while the number of special education students has remained fairly 

constant. 

Special Education Special Special 

Fiscal Year Education Education Teachers Paraeducators Students 

2004-05 7,066 9,655 65,291 

7,181 10,294 65,595 

7,380 10,726 65,831 

7,535 11,266 65,716 

7,757 11.808 65.730 

Cumulative +9.8% +22.3% +.67% Increase 

It is important to note during this same time period appropriations for special education 

increased over $177 million, or by 70.6%. As a result of these additional resources and the 

unwavering commitment of Kansas educators to ensure the academic success of all students, 

unprecedented gains in the academic performance of special education students and a 

narrowing of the gap between special education students and regular education students has 

occurred. 

The following data indicates the progress students with disabilities have made on the Kansas 

State Assessments in Reading and Math as reported on within the FFY08 Annual Performance 

Report (APR), Indicator 3 submitted to the U.S. Department of Education on February 2010. 
75 

,0 

~;J 

rigurc 3.1 Pc'cent of Studenls Wilh Disabilities 

Scor ng P'oliclent on Sale Reading Assessments 

70% 

+ ~ .. LjJf-:.j f' rol. b/ I,'rfl~l:l!r9 rOlr:v.: ~ 

1005 ?.. :::~>,:,~ ~:,~,~ 

As reported in the FFY08 Kansas Special Education Annual Performance Report, Indicator 3, page 

http://www.ksde.org/LinkGlick.aspx?filetlcket=VESCF1aOXuk%3d&labid=2037&mid:::9721 

~c 

I .. 

7( 

·1!: 

i-I~U I e 3.2 I-'ercer;t o' ::>\udents 1J'/IIh Uisabilties 

SCQ ring "'r·)flclem 011 Stat ~ rvlo::.til Assessments 

+ r.r"tJl P':-I 8'1 ~ 

r'h ~ I c-,f,'!' 

2:.05 2'1:);, 2':Y.l; 2~·:V. 

As reported in the FFY08 Kansas Special Education Annual Performance Report, Indicator 3, page 

http://www . ksde.o rq/Lin kGI ick .aspx?filetlcket= VESG F 1 aOXuk%3d&tabid=203 7 & mid=9721 

No budget reductions were applied to the Special Education SeNices Team in the State 

Department of Education in FFY09 to ensure that adequate staffing and resources continue to 

be available for monitoring school districts for compliance with IDEA and to provide required 

technical assistance, training, and support to schools. Based on the results of the Kansas 

Special Education State Performance Plan (SPP) and Special Education Annual Performance 

Report (APR), the most recent Level of Determination (LOD) made by the Office of Special 

Education Programs in June 2010 for the State of Kansas was UMeets Requirements". 

FFY09 Least Restrictive Environment (LRE) data indicate improvement from FFY08 in the 

percentage of students with disabilities ages 6-21 served inside the regular class 80%) or more 
of the day from 62.16% to 62.8%. Special Education performance data for other SPP indicators 

for the 2009-2010 year is currently being collected and will be reported in the FF09 Special 

Education APR. Once again, Kansas anticipates meeting all IDEA requirements and 

demonstrating improved outcomes for students with disabilities . 

KSDE appreciates the assistance of the U.S. Department of Education in reviewing this 

amended Waiver Request for FFY09. Despite this financial hardship, Kansas educators 

continue to ensure a free appropriate public education will be provided to all students with 

disabilities. 
Kansas State level of Financial Support for Special Education - Maintenance of Effort (MOE) 

Part B IDEA (Students with Disabilities Ages 3-21) 

State level Financial Support for Special Education - Requirements and Guidance 

Under 34 CFR §300.163(a), "a State must not reduce the amount of State financial support for special education and related services 

for children with disabilities, or otherwise made available because of the excess costs of educating those children, below the amount 

of that support for the preceding fiscal year." 

Per guidance provided by the U.S Department of Education within the OSEP 10-5 Memorandum, "The reference to 'State Financial 

supporr in 34 CFR §300.163(a) is not limited to only the financial support provided to or through the SEA, but encompasses the 

financial support of all State agencies that provide or pay for special education and related services, as those terms are defined 

under IDEA, to children with disabilities" 

34 CFR §300.162(b)(2)(l) "Funds paid to a State underthis part must not be commingled with State funds. II 

liThe State financial support provided by the SEA for special education and related services is, of course, also included in the 

calculation required by 34 CFR §300.163." (OSEP l()"'S Memorandum) 

" ... a State needs to include in its calculation of 'State financial support for special education and related services' funds other 

agencies provide to the SEA for such services, funds other agencies provide directly to LEAs for the services, and funds other 

agencies directly pay to staff or contractors for the delivery of the services pursuant to an IEP." 

34 CFR §300,163(b) "Reduction of funds for failure to maintain support. The Secretary reduces the allocation of funds under section 

611 of the Act for any fiscal year following the fiscal year in which the State fails to comply with the requirement of paragraph (a) 

of this section by the same amount by which the State fails to meet the requirement." 
Kansas State Level Financial Support for IDEA Part B Special Education Calculations Worksheet 

FFY08 FFY09 

(2008-09) (2009-10) 

1. Special Education Categorical Aid Appropriation 

Minus Gifted and IT FTE $$ 427,753,137 $$ 367,575,271 

Total FTE Gifted and IT (subtract) 

$$ -$19,864,820 $$ -$13,376,690 

2. KSDE Special Education Services State Support $$ 385,601 $$ 374,209 

3. Kansas School for the Blind State Appropriation $$ 5,769,542 $$ 5,447,559 

4. Kansas School for the Deaf State Appropriation 

$$ 8,796,913 $$ 8,792,432 

5. Deaf Blind State Appropriation 

$$ 110,000 $$ 110,000 

6. Social Rehabilitation Services $$ 1,609,479 $$ 1,468,681 State Appropriations for Students with Disabilities ages, 3-21 

7. Kansas Department of Health and Environment 

$$ $$ State Appropriations for Students with Disabilities, ages 3-21 0 0 

8. Kansas Health Policy Authority 

State Appropriations for Students with Disabilities ages 3-21 $$ 8,824,317 $$ 7,500,000 

9. Other Sources of State Aid to be Included $$ 0 $$ 0 

10. Kansas State level Financial Support $$ 433,384,169 $$ 377,891,462 

**Total amounts should include all supplementals, rescissions, and/or allotments 
KANSAS COMP2.2 - SCHEDULE 2.2 COMPARISON jarpin / 2011M0100296 

General Government 

 

Department of Administration 57,200,069 (15,854) 3,104 0 57,187,319 

Kansas Human Rights Commission 1,525,481 (2,778) (123) 0 1,522,580 

Board of Indigents Defense Services 22,195,415 664,240 726 0 22,860,381 

Kansas Public Employees Retirement 

System 639,134 0 0 0 639,134 

Department of Commerce 14,323 0 0 0 14,323 

Kansas Lottery 0 0 0 0 0 

Kansas Racing & Gaming Commission 0 0 0 0 0 

Department of Revenue 16,376,306 (30,946) 5,244 0 16,350,604 

Court of Tax Appeals 1,384,084 (2,485) (4,794) 0 1,376,805 

Governmental Ethics Commission 416,711 (718) (952) 0 415,041 

Hearing Instruments Board of Examiners 0 0 0 0 0 

Board of Examiners in Optometry 0 0 0 0 0 

Board of Pharmacy 0 0 0 0 0 

Kansas Real Estate Commission 0 0 0 0 0 

Board of Technical Professions 0 0 0 0 0 

Office of the Governor 7,305,933 (4,108) (3,480) 0 7,298,345 

Office of the Lieutenant Governor 203,227 (315) (1,354) 0 201,558 

Attorney General 2,683,452 (3,550) (977) 0 2,678,925 

Insurance Department 0 0 0 0 0 

Secretary of State 0 0 0 0 0 

Legislative Coordinating Council 733,740 (1,407) 548,758 0 1,281,091 

Legislature 16,231,681 (34,163) 27,521 0 16,225,039 

Legislative Research Department 3,497,971 (6,239) (1,555) 0 3,490,177 

Legislative Division of Post Audit 2,598,913 (4,379) (1,555) 0 2,592,979 

Revisor of Statutes 3,273,262 (5,053) (1,555) 0 3,266,654 

Judiciary 101,779,899 (153,449) (420,022) 0 101,206,428 

Judicial Council 0 0 0 0 0 

 

Total--General Government $238,059,601 $398,796 $148,986 $0 $238,607,383 

 

Human Services 

 

Social & Rehabilitation Services 551,799,910 (16,742,169) 30,041 0 535,087,782 

Kansas Neurological Institute 8,677,762 (17,103) 378 0 8,661,037 

Larned State Hospital 42,402,174 (87,925) 13,482 0 42,327,731 

Osawatomie State Hospital 16,691,971 (32,086) 3,852 0 16,663,737 

Parsons State Hospital & Training Center 7,497,081 (14,698) 1,888 0 7,484,271 

Rainbow Mental Health Facility 5,575,456 (10,146) 997 0 5,566,307 

 

Subtotal--SRS $632,644,354 $(16,904,127) $50,638 $0 $615,790,865 

 

Kansas Health Policy Authority 387,459,860 (16,406,979) 823 0 371,053,704 

Department on Aging 144,106,372 (870,474) 663 0 143,236,561 

Health and Environment--Health 23,212,821 (12,986) 780 0 23,200,615 

Department of Labor 456,826 (773) 26 0 456,079 

Commission on Veterans Affairs 8,204,907 (12,019) (2,962) 0 8,189,926 

Kansas Guardianship Program 1,119,769 (1,129) 0 0 1,118,640 

Schedule 2.2--Expenditures from the State General Fund by Agency 

 

FY 2010

Governor's

Recommenda

Governor's

Amendments

Legislative

Changes 

Governor's 

Vetoes 

FY 2010

Approved

Budget 

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KANSAS COMP2.2 - SCHEDULE 2.2 COMPARISON jarpin / 2011M0100296 

 

Total--Human Services $1,197,204,909 $(34,208,487) $49,968 $0 $1,163,046,390 

 

Education 

 

Department of Education 2,847,776,163 (8,116,168) 321 0 2,839,660,316 

School for the Blind 5,447,559 (10,409) 44 0 5,437,194 

School for the Deaf 8,792,432 (16,665) 1,362 0 8,777,129 

 

Subtotal--Department of Ed. $2,862,016,154 $(8,143,242) $1,727 $0 $2,853,874,639 

 

Board of Regents 170,858,608 (6,208) 6,208 0 170,858,608 

Emporia State University 31,436,938 (54,863) 54,863 0 31,436,938 

Fort Hays State University 33,342,724 (59,721) 59,721 0 33,342,724 

Kansas State University 104,490,156 (191,084) 191,084 0 104,490,156 

Kansas State University--ESARP 48,830,611 (80,505) 80,505 0 48,830,611 

KSU--Veterinary Medicial Center 10,364,282 (18,656) 18,656 0 10,364,282 

Pittsburg State University 34,280,494 (48,200) 48,200 0 34,280,494 

University of Kansas 136,880,633 (182,011) 182,011 0 136,880,633 

University of Kansas Medical Center 110,265,299 (176,918) 176,918 0 110,265,299 

Wichita State University 66,314,393 (110,002) 110,002 0 66,314,393 

 

Subtotal--Regents $747,064,138 $(928,168) $928,168 $0 $747,064,138 

 

Kansas Arts Commission 1,138,937 (459) (854) 0 1,137,624 

Historical Society 5,584,794 (6,949) (1,187) 0 5,576,658 

State Library 4,549,542 (2,529) (1,106) 0 4,545,907 

 

Total--Education $3,620,353,565 $(9,081,347) $926,748 $0 $3,612,198,966 

 

Public Safety 

 

Department of Corrections 102,011,270 (37,355) 1,307 0 101,975,222 

El Dorado Correctional Facility 23,526,801 (37,658) 262 0 23,489,405 

Ellsworth Correctional Facility 12,630,179 (19,976) (143) 0 12,610,060 

Hutchinson Correctional Facility 8,378,158 (7,878) (721) 0 8,369,559 

Lansing Correctional Facility 37,321,747 (60,434) 2,427 0 37,263,740 

Larned Correctional Mental Health Facility 9,883,553 (16,513) (178) 0 9,866,862 

Norton Correctional Facility 3,357,680 (2,512) 6 0 3,355,174 

Topeka Correctional Facility 12,591,062 (21,553) 86 0 12,569,595 

Winfield Correctional Facility 2,379,740 0 0 0 2,379,740 

 

Subtotal--Corrections $212,080,190 $(203,879) $3,046 $0 $211,879,357 

 

Juvenile Justice Authority 42,006,643 (921,165) (1,012) 0 41,084,466 

Atchison Juvenile Correctional Facility 0 0 0 0 0 

Beloit Juvenile Correctional Facility 782,471 (1,193) 418 0 781,696 

Kansas Juvenile Correctional Complex 16,381,237 (20,167) 588 0 16,361,658 

Larned Juvenile Correctional Facility 8,732,478 (13,054) (18) 0 8,719,406 

 

Schedule 2.2--Expenditures from the State General Fund by Agency 

 

FY 2010

Governor's

Recommenda

Governor's

Amendments

Legislative

Changes 

Governor's 

Vetoes 

FY 2010

Approved

Budget 

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KANSAS COMP2.2 - SCHEDULE 2.2 COMPARISON jarpin / 2011M0100296 

Subtotal--Juvenile Justice $67,902,829 $(955,579) $(24) $0 $66,947,226 

 

Adjutant General 32,787,006 (5,186) (1,308) 0 32,780,512 

Highway Patrol 32,147,997 (16,928) (565) 0 32,130,504 

Kansas Bureau of Investigation 14,622,925 (12,174) (562) 0 14,610,189 

Kansas Parole Board 503,158 (898) (4,819) 0 497,441 

Sentencing Commission 8,179,370 (950) (1,092) 0 8,177,328 

 

Total--Public Safety $368,223,475 $(1,195,594) $(5,324) $0 $367,022,557 

 

Agriculture & Natural Resources 

 

Department of Agriculture 9,814,353 (16,407) 1,340 0 9,799,286 

Animal Health Department 859,386 (605) 29 0 858,810 

State Conservation Commission 745,997 (1,287) (1,173) 0 743,537 

Health and Environment--Environment 7,922,917 (13,923) 2,075 0 7,911,069 

Kansas State Fair 341,861 0 0 0 341,861 

Kansas Water Office 1,966,031 (2,343) (1,271) 0 1,962,417 

Department of Wildlife & Parks 5,569,472 (6,138) (88) 0 5,563,246 

 

Total--Agriculture & Natural Resources $27,220,017 $(40,703) $912 $0 $27,180,226 

 

 

Total Expenditures $5,451,061,567 $(44,127,335) $1,121,290 $0 $5,408,055,522 

 

Schedule 2.2--Expenditures from the State General Fund by Agency 

 

FY 2010

Governor's

Recommenda

Governor's

Amendments

Legislative

Changes 

Governor's 

Vetoes 

FY 2010

Approved

Budget 

Page 3 of 6

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