2023 New York Laws › EDN - Education › Title 6 - Special Schools and Instruction › Article 89 - Children With Disabilities. › 4405 - Computing Financial Responsibility for Special Educational Services for Certain Children With Disabilities.

§ 4405. Computing  financial  responsibility  for  special educational
services for certain children with disabilities.  1.    Maintenance  for
children  with  disabilities in residential schools under the provisions
of this article or  state  schools  under  the  provisions  of  articles
eighty-seven and eighty-eight of this chapter.
a. Maintenance for a student with a disability placed in a residential
school  under  the provisions of this article shall be a charge upon the
social services district wherein such child resides at the time  of  the
commencement  of  the school year for which aid is to be paid. Financial
responsibility for the maintenance of a student with a disability placed
in a state school under the  provisions  of  articles  eighty-seven  and
eighty-eight  of this chapter shall be in accordance with the provisions
of such articles.
c. Expenditures made by a social services district for the maintenance
of a child with a disability placed in a residential  school  under  the
provisions  of  this article, including a child with a disability placed
by a school district committee on special  education  pursuant  to  this
article  in  a special act school district, or a state school subject to
the  provisions  of  articles  eighty-seven  and  eighty-eight  of  this
chapter,  shall  be  subject  to  reimbursement  by  the  child's school
district of residence pursuant to the provisions of subdivision  ten  of
section  one  hundred fifty-three of the social services law. The amount
of such reimbursement shall be a charge upon  such  school  district  of
residence.
2.  Transportation  expense.  The transportation expense of each child
with a disability shall be aidable in accordance with subdivision  seven
of  section  thirty-six  hundred two of this chapter; provided, however,
that for  the  school  year  commencing  July  first,  nineteen  hundred
seventy-six,  school districts shall be apportioned ninety per centum of
the estimated amount  of  its  approved  costs  of  such  year  for  the
transportation  of  children  with disabilities whose transportation was
formerly provided under a family court order and is now  a  charge  upon
the  school  district, subject to the adjustment of any errors after the
actual costs are ascertained.
3. Computing state financial responsibility for operating expenses for
certain children with disabilities.
a. In addition to any other apportionments  under  the  provisions  of
this  chapter,  there  shall  be  apportioned  to each applicable school
district for each child with a  disability  in  attendance  in  a  state
school under the provisions of paragraph d of subdivision two of section
forty-four  hundred one of this article or an approved program under the
provisions of paragraphs e, f, g, h, i and l of  such  subdivision  two,
the  product of such attendance, computed in accordance with regulations
of the commissioner, and the excess cost  aid:  an  amount  computed  by
multiplying  the  excess  cost, as defined in subdivision six of section
forty-four hundred one of this article by  the  excess  cost  aid  ratio
defined in subdivision seven of this section.
b.  In  addition  to  the  apportionment provided to a school district
pursuant to paragraph a of this subdivision  for  the  attendance  of  a
child  with  a  disability  in  a  state  school under the provisions of
paragraph d of subdivision two of section forty-four hundred one of this
article, for each such child in attendance in such school prior to  July
first, nineteen hundred ninety, there shall be apportioned an additional
amount.  Such  amount  shall equal the product of the taper aidable cost
multiplied by the taper aid ratio. The taper aidable  cost  shall  equal
the positive remainder resulting when (i) the apportionment attributable
to  such child pursuant to paragraph a of this subdivision is subtracted
from (ii) the product of such child's attendance and the tuition for the

state school such child attends. The taper aid  ratio  shall  equal  the
quotient,  computed  to  three decimals without rounding, resulting when
the positive remainder of  one  minus  the  combined  wealth  ratio,  as
defined  in  subdivision three of section thirty-six hundred two of this
chapter is divided by seventy-five one-hundredths. Such aid ratio  shall
not be less than zero nor more than one.
c.  The  apportionments  to  each  school  district  pursuant  to this
subdivision shall be based on excess cost paid and attendance during the
base year.
d. Notwithstanding sections thirty-six hundred  seven  and  thirty-six
hundred   nine-a  of  this  chapter,  apportionments  pursuant  to  this
subdivision shall be paid to school districts upon submission of reports
of attendance and  approved  tuition  expenditures  filed  in  a  format
prescribed  by  the  commissioner  and  shall  be  paid  from the annual
apportionment of public moneys for the  support  of  public  schools  in
accordance with section thirty-six hundred nine-b of this chapter.
4.  a.  The  commissioner  of education and the commissioner of social
services shall develop reimbursement methodologies for the  tuition  and
maintenance  components  of  approved  private  schools  and special act
school districts. The commissioner of education,  in  consultation  with
the   appropriate   state   agencies   and   departments,   shall   have
responsibility for developing a reimbursement  methodology  for  tuition
which  shall be based upon appropriate educational standards promulgated
pursuant  to  regulations  of  the  commissioner   of   education.   The
commissioner  of social services, in consultation with appropriate state
agencies and departments, shall have  responsibility  for  developing  a
reimbursement  methodology  for  maintenance,  pursuant to section three
hundred ninety-eight-a of the social services law  and  the  regulations
promulgated thereunder.
b.   The   commissioner   of  education  shall  develop  reimbursement
methodologies for the tuition components and, in consultation  with  the
commissioner  of  social services, the maintenance components of the New
York state school for the blind and the New York state  school  for  the
deaf   based   upon   appropriate   standards  promulgated  pursuant  to
regulations of the commissioner of education.
c. The director of the budget, in consultation with  the  commissioner
of  education,  the commissioner of social services, and any other state
agency or other source the director may deem appropriate, shall  approve
reimbursement   methodologies  for  tuition  and  for  maintenance.  Any
modification  in  the  approved  reimbursement  methodologies  shall  be
subject  to  the approval of the director of the budget. Notwithstanding
any other provision of law, rule or regulation to the contrary,  tuition
rates  established  for  the  nineteen  hundred  ninety-five--ninety-six
school year shall exclude the two  percent  cost  of  living  adjustment
authorized    in    rates   established   for   the   nineteen   hundred
ninety-four--ninety-five school year.
d. Effective upon final approval by the director of the budget of  the
reimbursement  methodologies  for  both  tuition  and  maintenance,  the
commissioner of education shall annually determine  a  tuition  rate  in
conformance  with this paragraph for each private school and special act
school district.
e. Effective upon final approval by the director of the budget of  the
reimbursement  methodologies  for  both  tuition  and  maintenance,  the
commissioner of social services shall annually determine  a  maintenance
rate and a medical services rate, in accordance with this paragraph, for
each private school and special act school district where applicable.
f.  Effective upon final approval by the director of the budget of the
reimbursement  methodologies  for  both  tuition  and  maintenance,  the

commissioner  of  education shall annually determine a tuition rate and,
in consultation with the commissioner of social services, a  maintenance
rate  and  a  medical  services rate, if applicable, in conformance with
this subdivision for the New York state school for the blind and the New
York state school for the deaf.
g.  All  reimbursement  rates  determined pursuant to this subdivision
shall be effective for the period July  first  through  June  thirtieth.
Rates  for  the  following  year  shall be submitted no later than April
fifteenth to the director of the budget. The  director  shall  act  upon
such  rates  within  forty-five days of submission. Such rates shall not
become effective until approved by the director of the  budget.  In  the
event  that  the  rates  are  approved after July first, then such rates
shall be deemed to apply retroactively to such date.
h. All  reimbursements  shall  be  subject  to  adjustment  and  final
determination  upon  field  audit conducted by the education department,
the department of social services, the state comptroller  or  any  agent
thereof.
i.  The commissioner of education, the commissioner of social services
and the director of the budget, in consultation with  other  appropriate
state   agencies  and  departments,  shall  enter  into  an  interagency
agreement to assure effective implementation of the provisions  of  this
paragraph.  The  agreement shall provide for, but not be limited to, the
development of common accounting practices and audit procedures,  common
information  and budget forms, coordinated financial and other reporting
requirements for private  schools  and  special  act  school  districts,
mechanisms  for  resolving appeals of rates established pursuant to this
section, and  mechanisms  to  evaluate  and  recommend  modification  to
reimbursement methodologies.
j.  (i)  If  the  board  of education of a special act school district
listed in chapter five hundred sixty-six of the laws of nineteen hundred
sixty-seven, as amended, seeks to close a special act  school  district,
the  board of education of the special act school district shall provide
written notice to the commissioner with a plan for closure of the school
at least ninety days prior to the closing date. Such plan shall  include
provision  for  the  safe  and  orderly  transfer of each student with a
disability who was publicly placed in the program  and  a  detailed  and
itemized  list  of estimated expenses necessary to close down the school
and a detailed and  itemized  list  of  any  estimated  revenues  to  be
received.
(ii)  During  the  close-down period and until all necessary financial
obligations of the school  district  have  been  met  pursuant  to  this
paragraph,  the commissioner shall require the board of education of the
school district to periodically submit, as required by the commissioner,
financial reports  and  financial  statements,  detailing  any  tuition,
and/or  close-down  costs  and  any  revenues generated. In applying the
reimbursement methodology to any remaining tuition costs and  any  other
reasonable and appropriate expenses needed to close-down the special act
school district, the commissioner shall reject any close-down costs that
are unnecessary or unreasonable to close-down the school, whether or not
the board of education submits a close-down plan.
k.   (i)   The   tuition  methodology  established  pursuant  to  this
subdivision for the two  thousand  twenty-one--two  thousand  twenty-two
school   year   shall   authorize   approved   private   residential  or
non-residential schools for the education of students with  disabilities
that  are  located within the state, and special act school districts to
retain funds  in  excess  of  their  allowable  and  reimbursable  costs
incurred  for services and programs provided to school-age students. The
amount of funds that may be  annually  retained  shall  not  exceed  one

percent  of  the  school's  or  school  district's  total  allowable and
reimbursable costs for services  and  programs  provided  to  school-age
students  for  the  school year from which the funds are to be retained;
provided  that  the total accumulated balance that may be retained shall
not exceed four percent of such total costs for such  school  year;  and
provided   further   that   such  funds  shall  not  be  recoverable  on
reconciliation of tuition rates, and  shall  be  separate  from  and  in
addition   to  any  other  authorization  to  retain  surplus  funds  on
reconciliation.
(ii) The tuition methodology established pursuant to this  subdivision
for  the  two thousand twenty-two--two thousand twenty-three school year
and annually thereafter shall authorize  approved  providers  to  retain
funds  in  excess of their allowable and reimbursable costs incurred for
services and programs provided to school-age and preschool students. The
amount of funds that may be  annually  retained  shall  not  exceed  the
allowable  surplus percentage of the approved provider's total allowable
and reimbursable costs for services and programs provided to  school-age
and  preschool  students for the school year from which the funds are to
be retained,  as  defined  in  subparagraph  (iii)  of  this  paragraph;
provided  that  such funds shall not be recoverable on reconciliation of
tuition rates. For purposes of this subparagraph,  "approved  providers"
shall  mean  private  residential  or  non-residential  schools  for the
education of students with disabilities  that  are  located  within  the
state,  special  act school districts, and programs approved pursuant to
section forty-four hundred ten of  this  article  that  are  subject  to
tuition rate reconciliation.
(iii)  The  approved  surplus  percentage  shall be as follows: eleven
percent for  the  two  thousand  twenty-two--two  thousand  twenty-three
through two thousand twenty-four--two thousand twenty-five school years,
eight  percent for the two thousand twenty-five--two thousand twenty-six
school year, five percent for the two thousand twenty-six--two  thousand
twenty-seven   school  year,  and  two  percent  for  the  two  thousand
twenty-seven--two  thousand  twenty-eight  school  year   and   annually
thereafter.
(iv)  Funds  authorized  to  be  retained  under this paragraph may be
expended only pursuant to an authorization of the governing board of the
school,  school  district  or  program  approved  pursuant  to   section
forty-four  hundred  ten  of  this  article,  for  a  purpose  expressly
authorized as part of the approved tuition methodology for the  year  in
which  the funds are to be expended, provided that funds may be expended
to pay prior year outstanding debts. Any  school,  school  district,  or
program  approved  pursuant  to  section  forty-four hundred ten of this
article that retains funds pursuant to this paragraph shall be  required
to annually report a statement of the total balance of any such retained
funds,  the  amount,  if  any,  retained  in  the prior school year, the
amount, if any, dispersed in the prior school year, and  any  additional
information requested by the department as part of the financial reports
that are required to be annually submitted to the department.
5.  The commissioner shall annually determine the tuition rate and the
commissioner of social services shall annually determine the maintenance
rate for special services or programs provided during the months of July
and August for children with  disabilities  entitled  to  attend  public
schools  without  the  payment of tuition pursuant to section thirty-two
hundred two  of  this  chapter.  The  commissioner  of  education  shall
annually  determine  the  tuition rate, maintenance rate and the medical
services rate, if applicable, for such children attending the  New  York
state  school  for  the  blind or the New York state school for the deaf
during the months of July and August. Such rates shall be determined  in

conformance with the reimbursement methodologies established pursuant to
subdivision four of this section and shall be subject to the approval of
the  division  of  the budget. Rates shall be determined for all special
services  or  programs  as  defined in section forty-four hundred one of
this chapter and offered during July and August.
6. Tuition and maintenance rates established pursuant to this section,
once certified by the director of the  budget,  shall  be  used  in  all
contracts  for  the  provision  of  programs and services for which such
rates were established, provided, however, that the  commissioner  shall
prorate  the  amount  to  be paid for an individual pupil enrolled for a
period of time which is less than the full period of time  approved  for
such program or services.