NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4156
SPONSOR: Ra TITLE OF BILL:
An act to amend the education law, in relation to providing an annual
growth amount for tuition and regional rate reimbursement for approved
school-age and preschool special education programs
PURPOSE:
The proposed legislation would provide an annual growth amount, corre-
lating growth in total state funding for general support for public
schools, in the tuition and regional rate reimbursement for school age
programs operated by in-state approved private schools for the education
of students with disabilities, by special act school districts, and by
approved July and August programs for students with disabilities; and
for approved preschool special education programs.
SUMMARY OF PROVISIONS:
Section 1 of the bill amends subdivision 2 of section 4003 of the educa-
tion law to provide that for the 2022-23 school year and thereafter,
annual tuition and/or regional rates for school age programs operated by
in-state approved private residential or non-residential schools for the
education of students with disabilities, by special act school
districts, and and approved July and August programs for students with
disabilities, and for approved preschool special education programs
including, but not limited to, special class programs, special class in
an integrated setting programs (SCIS), preschool multi-disciplinary
evaluation programs
(MDE), special education itinerant services (SETS), and preschool trans-
portation services shall grow by a percentage equal to the greater of:
(i) the difference of the quotient arrived at when dividing the state-
wide apportionments for general support for public schools, as defined
in subdivision one of section thirty-six hundred nine-a of the Education
Law for the current year by such apportionments for the base year, as
such terms are defined in subdivision one of section thirty-six hundred
two of this chapter, as computed based on an electronic data file used
to produce the school aid computer listing produced by the commissioner
of education in support of the enacted budget for the current year, less
one; or (ii) zero.
Section 2 of the bill amends paragraph c of subdivision 4 of section
4405 of the education law to set out identical provisions.
Section 3 of this bill is the effective date.
JUSTIFICATION:
Tuition and regional rate reimbursement for approved providers of
special education programs and services is established by the New York
State Education Department (Department) and approved by the Division of
the Budget (DOB). The Department establishes annual tuition rates for
over 1,000 approved special education programs at approved private
schools, public schools, special act school districts, and BOCES and
regional rates for MDE, SEIS, 1:1 teacher aide, 1:1 nurse, 1:1 inter-
preter, and preschool transportation services. Annual tuition rates for
special class and SCIS programs are established using a rate system that
is based on actual provider historical cost and enrollment data, with a
trend factor applied. The tuition rate methodology for special class and
SCIS programs includes funding containment parameters to restrict fund-
ing for executive compensation, limit reimbursement for facility and
administrative expenses (it is expected that at least 70 percent of each
reimbursable dollar will be spent on direct care services to students)
and contain rates to a percentage increase from a previous year's rate.
In instances where the funding containment measures place a hardship on
a provider's ability to deliver mandated services and/or remain fiscally
viable, a provider may submit a tuition rate appeal or waiver request
with the Department to consider a tuition rate adjustment. In recent
years, regional rates for MDE, SEIS, 1:1 teacher aide, and preschool
transportation services have been calculated based on the prior's years
rate plus any applicable approved percentage increase.
In recent years, the volume of tuition rate appeals and waivers have
increased at an unsustainable rate, the result of which is funding
delays to the providers, which hinders the provider's ability to budget
for their operations and make sound fiscal decisions. The Department,
DOB, approved providers, and other stakeholders have been discussing
issues with the current special education tuition and regional rate
setting methodology and possible alternatives to the current methodology
that would enable tuition and regional rates to be more flexible with
programmatic needs and issued in a timely manner, which would allow
providers to better manage their programs. While several administrative
tuition and regional methodology reforms have been adopted in recent
years that have provided some rate relief, tuition rate appeals continue
to be sought at an unsustainable volume.
Creating a statutory index to provide an annual funding increase commen-
surate with the growth in the general support for public schools would
help address the financial stability for approved school-age and
preschool programs serving students with disabilities to enable them to
better provide mandated services to the students they serve. This meas-
ure would establish predictable tuition and regional rate increases and
allow for improved budget planning. While the tuition growth for 2022-23
is anticipated to offer some relief, in prior years the tuition growth
for school-age providers has mirrored the growth in general support for
public schools, even as the tuition growth for preschool providers of
special class and SCIS programs, and the 1:1 teacher aide and preschool
transportation services regional rates have been held at 2.0% annually.
This legislation would ensure funding parity in tuition and regional
rate reimbursement for the provision of free appropriate public educa-
tion to preschool and school- age students with disabilities on a more
consistent basis.
LEGISLATIVE HISTORY:
2022: A.10621 (Ra): Referred to Education.
Previous bills containing similar provisions were previously introduced
in 2014, 2015, 2016, 2017, and 2021. In 2014, the similar bill was
introduced by the Senate' as 5.7638, was referred to the Education
Committee and no further action was taken. It was also introduced by the
Assembly as A.9767 and was reported from the Education Committee and
referred to the Ways and Means Committee and no further action was
taken. In 2015 and 2016, the similar bill was introduced in the Senate
and Assembly (S.7916 Flanagan/A.5061-A Nolan) and remained in the Educa-
tion Committees of both houses. In 2017, the similar bill was introduced
in the Senate and Assembly (S.5246-A Marcellino/A.6514-A Nolan) and
passed the Assembly but remained in the Senate Education Committee. In
2021, S.6516 / A.8013 passed both Houses of the Legislature and was
vetoed by the Executive (veto memo 82).
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
4156
2023-2024 Regular Sessions
IN ASSEMBLY
February 10, 2023
___________
Introduced by M. of A. RA -- read once and referred to the Committee on
Education
AN ACT to amend the education law, in relation to providing an annual
growth amount for tuition and regional rate reimbursement for approved
school-age and preschool special education programs
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section 4003 of the education law, as
2 amended by chapter 947 of the laws of 1981, is amended to read as
3 follows:
4 2. The director of the budget, in consultation with the commissioner
5 [of education], the commissioner of social services, the commissioner of
6 health, the commissioner of mental health, and any other state agency or
7 other source he or she may deem appropriate, shall approve reimbursement
8 methodologies for tuition and maintenance. Any modification in any such
9 methodology which has previously been approved shall be subject to the
10 approval of the director of the budget. Tuition and/or fee for service
11 rates approved for the two thousand twenty-four--two thousand twenty-
12 five school year and thereafter for special services or programs
13 provided to school-age students by approved private residential or
14 nonresidential schools for the education of students with disabilities
15 that are located within the state, by special act school districts, and
16 by July and August programs for students with disabilities approved
17 pursuant to section forty-four hundred eight of this title, and for
18 special services or programs provided to preschool students by programs
19 serving preschool students with disabilities approved pursuant to
20 section forty-four hundred ten of this title including, but not limited
21 to, special class and special class in an integrated setting programs,
22 multi-disciplinary evaluation programs, special education itinerant
23 services, and preschool transportation services for which tuition and/or
24 fee for service rates are determined, shall grow by a percentage equal
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08886-01-3
A. 4156 2
1 to the greater of: (i) the difference of the quotient arrived at when
2 dividing the statewide apportionments for general support for public
3 schools, as defined in subdivision one of section thirty-six hundred
4 nine-a of this chapter, for the current year by such apportionments for
5 the base year, as such terms are defined in subdivision one of section
6 thirty-six hundred two of this chapter, as is computed based on an elec-
7 tronic filing data file used to produce the school aid computer for the
8 current year, less one; or (ii) zero.
9 § 2. Paragraph c of subdivision 4 of section 4405 of the education
10 law, as amended by chapter 82 of the laws of 1995, is amended to read as
11 follows:
12 c. The director of the budget, in consultation with the commissioner
13 [of education], the commissioner of social services, and any other state
14 agency or other source the director may deem appropriate, shall approve
15 reimbursement methodologies for tuition and for maintenance. Any modifi-
16 cation in the approved reimbursement methodologies shall be subject to
17 the approval of the director of the budget. [Notwithstanding any other
18 provision of law, rule or regulation to the contrary, tuition rates
19 established for the nineteen hundred ninety-five--ninety-six school year
20 shall exclude the two percent cost of living adjustment authorized in
21 rates established for the nineteen hundred ninety-four--ninety-five
22 school year.] Tuition and/or fee for service rates approved for the two
23 thousand twenty-four--two thousand twenty-five school year and thereaft-
24 er for special services or programs provided to school-age students by
25 approved private residential or nonresidential schools for the education
26 of students with disabilities that are located within the state, by
27 special act school districts, and by July and August programs for
28 students with disabilities approved pursuant to section forty-four
29 hundred eight of this article, and for special services or programs
30 provided to preschool students by programs serving preschool students
31 with disabilities approved pursuant to section forty-four hundred ten of
32 this article including, but not limited to, special class and special
33 class in an integrated setting programs, multi-disciplinary evaluation
34 programs, special education itinerant services, and preschool transpor-
35 tation services for which tuition and/or fee for service rates are
36 determined, shall grow by a percentage equal to the greater of: (i) the
37 difference of the quotient arrived at when dividing the statewide appor-
38 tionments for general support for public schools, as defined in subdivi-
39 sion one of section thirty-six hundred nine-a of this chapter, for the
40 current year by such apportionments for the base year, as such terms are
41 defined in subdivision one of section thirty-six hundred two of this
42 chapter, as is computed based on an electronic filing data file used to
43 produce the school aid computer for the current year, less one; or (ii)
44 zero.
45 § 3. This act shall take effect immediately.
