Special Education

1
Special Education Shared Services
DiscussionFebruary 12, 2008
2
Agenda

• Overview of LESA
• LESA Funding
• Special Education Fund
• General Education Fund
• Shared Services (PA 63)
• Questions Answers

3
Special Education Funding
4
Current Funding Formulas

• Generally favor low numbers of special education
  student FTEs and high costs
• Some counties tried to achieve this by shifting
  costs from the local districts to the ISDs
• The State said no and beginning with the
  2004-2005 fiscal year, the district or ISD that
  reported the special education support staff must
  continue to do so

5
Federal IDEIA Funding

• Livingston County 2007-2008 IDEIA Grant Amount
• Base Calculation of 1998 December 1 headcount of
  3,019 for Livingston County generates 1,565,689
  (this amount is frozen and does not change).
• K-12 Public, ISD, and Non-Public September 2006
  student FTE count of 32,289 multiplied by the
  pro-rata allocation of 106.259758275 generates
  3,431,021.
• Poverty Allocation based on free lunch numbers of
  2,541 for Livingston County multiplied by the
  pro-rata allocation of 64.6013258275 generates
  164,152.
• Total IDEIA Allocation for 2007-2008 is
  5,160,862.

6
State Funding

• In Michigan, special education funding from the
  state is distributed on a per-pupil basis for
  some districts and on a per-pupil and categorical
  basis for other districts.
• Some districts receive one type of categorical
  payment while others receive additional amounts
  for students that are in the care of various
  government institutions or in alternative
  residential arrangements.

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51a.2 Foundation Allowance

• The foundation allowance for general education is
  collected partly from local millage (18 mills on
  non-homestead property) and partly from state-aid
  payments.
• The foundation allowance for special education is
  paid entirely by state government.

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51a Special Education

• A district or ISD qualifies for 51a funds
  whenever the special education foundation
  allowance does not equal the sum of
• 28.6138 of the total approved Special Education
  Costs and
• 70.4165 of the total approved Special Education
  Transportation Costs

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51a Special Education

• Livingston County 2006-2007
• Per-Pupil Basis
• Fowlerville
• Howell
• Pinckney
• Per-Pupil and Categorical Basis
• Brighton
• Hartland

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51a Special Education
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County Funds

• Special Education Millage
• 3.31 mills approved in 1962, 1974, and 1988
• Due to Headlee rollbacks the current millage
  levy is 2.2691 mills
• Using a taxable value of 7.6 billion, a Headlee
  Override could generate in the neighborhood of
  7.9 million per year.

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Unfunded Special Education Costs
13
General Education Fund
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Budget Summary
Note The Deficit in the General fund represents
one-time spending for Instructional Consultation
Teams in the amount of 408,403, Adolescent
Literacy Initiatives in the amount of 76,600,
energy conservation initiatives for constituent
districts in the amount of 50,000, and a slight
operating surplus. The Deficit in the Special
Education fund represents a one-time supplemental
pay-out of operational support to constituent
districts and debt payments for Pathway.
15
Public Act 63 Of 2007
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Managing in a Shared Services Environment
Source Deloitte Research Driving More Money
into the Classroom
17
Public Act 63 of 2007

• Became law on September 19, 2007
• Requires each Educational Service Agency to
  conduct a study concerning opportunities for its
  constituent districts to share services with
  other providers of similar services such as
• Educational Service Agencies
• 1 or more other School Districts
• Other local units of Government
• Other programs designed to achieve cost savings

18
Public Act 63 of 2007

• Requires reporting for all of the following
  non-instructional services
• Pupil transportation
• Human Resource Administration
• Procurement of Supplies and other Purchasing
• Technology Support Services
• Professional Development
• Accounting and other Financial Services
• Legal Services
• Food and Child Nutritional Services
• Event Management
• Production Printing and Graphics
• Shipping and Receiving Services
• Other services described in MCL 380.627

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Influences
Effectively Deploy New Resources
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Pre-Project Assessment
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767 Schools in Michigan
Source 2005-2006 Bulletin 1014
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Revenues by District Size
Source 2005-2006 Bulletin 1014
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Federal Revenues Gap
Source 2005-2006 Bulletin 1014
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The Size Paradox
Source 2005-2006 Bulletin 1014
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The Size Paradox
Source 2005-2006 Bulletin 1014
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Source 2005-2006 Bulletin 1014
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Source 2005-2006 Bulletin 1014
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PA 63 of 2007Average Costs Per Student
2005-2006 Financial Data Rankings based on a
total of 57 ESAs in Michigan
() 43 of all districts reported 0 in Human
Resources Expenditures
Source MDE PA 63 File
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Existing Collaborative Efforts

• Consortiums Inside of Livingston County
• GED Preparation and administration for the
  business community and county jail
• Career Technical Education Programs (LATEC)
• Homebound School Services
• Alternative Education (Renaissance Alternative
  School)
• Substitute Teacher Placement
• Special Education

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Existing Collaborative Efforts

• Programs Inside of Livingston County
• School Readiness/Early Childhood/Early-On
• Head Start
• Pupil Accounting and Auditing
• Specialized Transportation (Special Education
  Head Start)
• Visual Imaging
• Criminal Records Checks
• Purchasing Cooperatives (Wayne RESA, REMC, Food
  Svc, State, MSBO, etc.)

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Existing Collaborative Efforts

• With Other Counties
• Data Processing
• Business Student Management Software
• Instructional Consultation Teams Reading
  Apprenticeship
• Drug Free Schools
• Health Education
• Math Science Resource and Training Services
• Nutrition Education

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Collaborative Efforts

• that we have been working on since April, 2007
• Consortium pricing for cellular services
  beginning July 1, 2008 25 to 35 savings!
• Proposal to Livingston County to provide Diesel
  Repairs Maintenance for the entire LETS Fleet
  by Livingston ESA
• Shared General Education Director with Washtenaw
• Shared Agreement for Accounting Services between
  Livingston ESA and Pinckney Schools
• County-Wide Technology Services at Livingston ESA
  (hardware and network support, administrative
  software support, etc.)
• County-Wide Request for Proposal for Third-Party
  Agreement to meet compliance requirements for new
  IRS 403(b) regulations

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Public Act 63 of 2007
34
Public Act 63 of 2007