Bill Text: NJ S3758 | 2018-2019 | Regular Session | Introduced
Bill Title: Provides for direct State payment of cost of special education and related services for certain students.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-05-16 - Introduced in the Senate, Referred to Senate Education Committee [S3758 Detail]
Download: New_Jersey-2018-S3758-Introduced.html
Sponsored by:
Senator JOSEPH PENNACCHIO
District 26 (Essex, Morris and Passaic)
Senator VIN GOPAL
District 11 (Monmouth)
Senator JOSEPH A. LAGANA
District 38 (Bergen and Passaic)
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
Provides for direct State payment of cost of special education and related services for certain students.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning payment for the costs of certain special education students, supplementing chapter 46 of Title 18A of the New Jersey Statutes, and amending P.L.2007, c.260 and P.L.2003, c.113.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) Sections 1 through 10 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be known and may be cited as the "Fairness in Special Education Funding for Student Success Act."
2. (New section) The Legislature finds and declares that:
a. The federal "Individuals with Disabilities Education Act" (IDEA), 20 U.S.C. s.1400 et seq., guarantees that a student with a disability will have access to a free appropriate public education in the least restrictive environment possible given the child's individual needs.
b. The federal government provides funding to states and school districts to offset the additional costs that school districts inevitably incur when providing special education and related services to these students. The IDEA gives the Secretary of the United States Department of Education the authority to provide states and school districts with grants in an amount up to 40 percent of these excess costs.
c. Historically, the federal government has failed to appropriate sufficient resources to provide states and school districts with the maximum amount of funding authorized under the IDEA. In recent years, federal appropriations have provided for less than 20 percent of the excess costs incurred in educating students with disabilities.
d. Similarly, State support for special education has consistently fallen short of promises made. Despite State law mandating that school districts be reimbursed for a portion of the cost of educating particularly high-cost special education students, the State's appropriations acts have consistently failed to provide funding sufficient to provide for the full reimbursement established under that statute.
e. While federal and State government have failed to provide resources for the provision of special education services in the manner that has been promised over the years, school districts continue to be responsible for educating all students with disabilities so that they may reach their full potential and live successful and fulfilling lives. In meeting this obligation, school districts are often forced to make unconscionable choices between special education programs and the services provided to other students.
f. It is time for the State of New Jersey to finally meet its obligations to students with disabilities and their families by providing greater resources to ensure that they all have access to the free appropriate public education required under federal law. At the same time, the State must provide adequate oversight to guarantee that these students are educated in the least restrictive environment so that they may have the greatest opportunity to learn and grow with their peers.
g. The most effective means to accomplish this goal is for the State to assume the responsibility for entering into contracts with, and making payments to, providers of special education and related services to students with disabilities who require the most expensive services. Such a system would provide a substantial increase in State financial support for school districts to meet their obligations, provide actionable information and transparency regarding both quality and cost effectiveness of providers across the entire spectrum of placements and maintain equity in the provision of these services throughout the State.
3. (New section) As used in sections 1 through 10 of P.L. , c. (C. ) (pending before the Legislature as this bill):
"Final contract cost" means an amount not to exceed the actual cost of providing the special education and related services to a student with a disability that are detailed in the student's Individualized Education Program. This amount shall not exceed the certified tuition rate. The final contract cost shall also include related services such as home-based services or after school programming that is being provided by other entities. In the case of a provider that is the school district in which the student with a disability resides, the final contract cost shall be determined by a calculation completed in a manner consistent with standards and procedures promulgated by the State Board of Education.
"Projected contract cost" means the estimated cost of providing the special education and related services to a student with a disability that are detailed in the student's Individualized Education Program. These costs shall not exceed the tentative tuition rate. In the case of a provider that is the school district in which the student with a disability resides, the projected contract cost shall be determined by a calculation completed in a manner consistent with standards and procedures promulgated by the State board.
"Provider" means the entity
that will provide the special education and related services to a student with
a disability under a contract entered into pursuant to the provisions of
P.L. , c. (C. )
(pending before the Legislature as this bill).
4. (New section) In the first full school year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), a high needs placement shall include any combination of special education and related services, including residential and extended school year services, that are included in a student with a disability's Individualized Education Program in which the projected contract cost for the school year exceeds $55,000. In subsequent school years, the cost threshold shall be adjusted pursuant to the provisions of subsection b. of section 4 of P.L.2007, c.260 (C.18A:7F-46). For the purposes of this section, the cost of providing transportation services shall not be included in the cost to determine if a student with a disability requires a high needs placement.
5. (New section) a. Beginning in the first full school year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the Department of Education shall assume the responsibility of entering into a contract with, and making direct payments pursuant to that contract to, a provider of special education and related services for a student with a disability who requires a high needs placement.
b. There is established in the Department of Education the Office of High Needs Placement Funding. The commissioner shall appoint a director of the Office of High Needs Placement Funding and assign such staff as may be necessary to perform the functions of the office.
Upon receipt of the necessary information from the school district, the office shall enter into a contract with a provider for the provision of special education and related services for a student with a disability who requires a high needs placement pursuant to the student's Individualized Education Program. The office shall be responsible for making payments pursuant to all such contracts in 10 equal monthly payments beginning on the first business day of October of each school year. In the case of a contract that is entered into after that date, the payments shall be made in equal monthly payments for the remainder of the school year. Payments for summer and extended year programs shall be paid on a monthly basis following submission of an invoice for services rendered.
The initial payment for each student with a disability in a high needs placement shall be based on the projected contract cost. Payments made to a provider shall be adjusted to account for any difference between the projected contract cost and final contract cost as determined after the conclusion of the school year. The commissioner shall determine a schedule under which any underpayment shall be paid to the provider, or any overpayment shall be refunded to the State by a provider.
c. The office shall establish and maintain a directory of providers, which shall include all placement options including in-district placements, out-of-district public placements, and private placements, that offer a range of special education and related services. The directory shall include, but need not be limited to, the most recent quality rating assigned to the provider pursuant to subsection d. of this section and comparative costs among providers for providing equivalent services. The comparative costs shall allow for an accurate comparison of the true costs of providing services for both public and private providers across the entire spectrum of placement options and include costs incurred in the provision of special education and related services that are paid on behalf of the provider and are not included in the projected or final contract cost. These cost shall include, but need not be limited to, pension and other retirement benefit costs, the cost of health benefits, and facilities costs.
d. The office shall implement the quality rating system developed pursuant to paragraph (1) of subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) for all providers located in the State. The office shall develop a schedule that ensures that each provider undergoes a quality rating review once every three years. Nothing in this subsection shall preclude the office from reviewing a provider on a more frequent basis.
6. (New section) a. There is established in the Office of High Needs Placement Funding, the High Needs Placement Committee. The committee shall include the commissioner, or a designee, the State Treasurer, or a designee, and 15 public members appointed as follows: seven members appointed by the Governor; two members appointed by the President of the Senate; two members appointed by the Minority Leader of the Senate; two members appointed by the Speaker of the General Assembly; and two members appointed by the Minority Leader of the General Assembly. The appointed members shall include representatives of providers, special education advocates, and other individuals with expertise in the development, delivery, and budgeting aspects in the implementation of Individualized Education Programs by both public and private providers. The appointed members of the committee shall serve without compensation, but may be reimbursed for necessary expenses incurred in the performance of their duties.
b. The committee's responsibilities shall include, but need not be limited to, the following:
(1) developing a quality rating system for all providers located in the State that assesses the providers' performance in terms of measurable outcomes in providing special education and related services to students with disabilities who require a high needs placement;
(2) collecting, analyzing, and reporting data regarding the provision of special education and related services, including trends occurring before and after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill);
(3) in the event that the committee's analysis determines that school districts are either identifying students as requiring special education and related services at an inappropriately high rate or are failing to provide services in the least restrictive environment, identifying the root causes of these conditions and providing recommendations to remediate these occurrences;
(4) examining the impact of P.L. , c. (C. ) (pending before the Legislature as this bill) on the overall cost of high needs placements, including changes in the share of students with disabilities that require high needs placements;
(5) conducting a longitudinal study of students with disabilities who cease to require high needs placements. At a minimum, the study shall examine the rate at which students cease to require high needs placements due to: the cost of implementing the Individualized Education Program no longer exceeding the cost threshold; the student no longer requiring special education and related services; the student graduating from high school; the student dropping out of school; and the student reaching the maximum age for receiving special education and related services. The study shall also analyze postsecondary education and employment outcomes for these students; and
(6) examining the threshold criteria used to define "high needs placement" including whether the threshold criteria should reflect high needs program elements such as staffing ratios in addition to or instead of a dollar threshold.
7. (New section) a. When developing an Individualized Education Program and determining the provider that will provide the special education and related services for a student with a disability, all decision-making shall be done in a manner consistent with the provisions of the "Individuals with Disabilities Education Act," 20 U.S.C. s.1400 et seq., chapter 46 of Title 18A of the New Jersey Statutes, and regulations promulgated thereto. The decisions shall ensure that a student with a disability is educated in the least restrictive environment and in a manner than ensures that the services are provided in an effective and efficient manner. The school district shall consult the information included in the directory of providers established pursuant to subsection c. of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill) in determining the provider that will implement the Individualized Education Program most efficiently and effectively.
b. Upon the completion of a student's Individualized Education Program and the selection of the provider that shall provide the special education and related services, the school district shall determine if it anticipates that the cost of implementing the Individualized Education Program will qualify as a high needs placement. In the event that the school district anticipates that the costs will qualify as a high needs placement, then the district shall forward the Individualized Education Program to the Office of High Needs Placement Funding.
8. (New section) a. For each student with a disability who has a high needs placement and is a resident of the school district, the Commissioner of Education shall deduct from the State aid payable to that district an amount equal to the high needs deduction as calculated pursuant to subsection b. of this section.
b. For each student with a disability who has a high needs placement, the high needs deduction shall be calculated as follows:
HND = RegEd + SpeEd + SpeCat + SecCat;
where
RegEd = (((Eqa + Gfl) x RegEdPer) / WENR) x STDWGT;
SpeEd = ((Eqa + Gfl) x SpeEdPer) / SPEENR;
SpeCat = Spe / SPEENR;
SecCat = Sec1 + Sec2;
Eqa is the amount of equalization aid payable to the school district in the budget year;
Gfl is the general fund tax levy raised by the school district in the prebudget year;
RegEdPer is the percent of the school district's adequacy budget, as calculated pursuant to section 9 of P.L.2007, c.260 (C.18A:7F-51) that is attributable to costs other than the special education census costs, as defined in that section, in the budget year;
STDWGT is the weighted enrollment of the student with a disability after applying the weights for kindergarten enrollment, middle school enrollment, or high school enrollment, pursuant to section 8 of P.L.2007, c.260 (C.18A:7F-50), and the at-risk weight, LEP weight, and combination weight pursuant to section 9 of P.L.2007, c.260 (C.18A:7F-51) that are applicable to that student;
SpeEdPer is the percent of the school district's adequacy budget, as calculated pursuant to section 9 of P.L.2007, c.260 (C.18A:7F-51) that is attributable to special education census costs, other than costs attributable to speech-only pupils, as defined in that section, in the budget year;
Spe is the amount of special education categorical aid payable to the school district in the budget year;
Sec1 is the security categorical aid per pupil amount pursuant to section 14 of P.L.2007, c.260 (C.18A:7F-56);
Sec2 is the at-risk security categorical aid per pupil amount pursuant to section 14 of P.L.2007, c.260 (C.18A:7F-56), except that Sec2 shall equal 0 for any student with a disability who is not an at-risk pupil pursuant to section 3 of P.L.2007, c.260 (C.18A:7F-45);
ENR is the number of resident students in the district as defined pursuant to section 3 of P.L.2007, c.260 (C.18A:7F-45);
WENR is the total number of resident students in the district accounting for, as applicable, weights for the students' grade level and status as an at-risk, bilingual, and combination pupil, as defined in section 3 of P.L.2007, c.260 (C.18A:7F-45); and
SPEENR is the number of resident students in the district who are classified as a student with a disability pursuant to chapter 46 of Title 18A of the New Jersey Statutes.
c. For each student with a disability who has a high needs placement and is a resident of the school district, the Commissioner of Education shall deduct from the State aid payable to that district an amount equal to any federal aid awarded pursuant to the "Individuals with Disabilities Education Act," 20 U.S.C. s.1400 et seq., and the "Elementary and Secondary Education Act of 1965, 20 U.S.C. s.6301 et seq., attributable to that student.
d. The amount deducted from a school district's State aid payable pursuant to subsections a. and c. of this section for an individual student shall not exceed the projected contract cost for that student. If the total amount to be deducted from a school district's State aid payable pursuant to subsections a. and c. of this section for all students is greater than the amount of State aid payable to the district, the district shall pay to the department the difference between the amount to be deducted and the State aid payable to the district.
9. (New section) In the first full school year following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), a school district shall receive extraordinary special education costs aid pursuant to the provisions of section 13 of P.L.2007, c.260 (C.18A:7F-55) as that section read prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
10. (New section) The State Board of Education shall adopt regulations, pursuant to the "Administrative Procedures Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to implement the provisions of this act. Private schools approved by the Commissioner of Education who are providers of high need placements shall not be subject to regulations of the State board concerning fiscal and operational requirements as a condition of reimbursement of the full contracted costs pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
11. Section 2 of P.L.2007, c.260 (C.18A:7F-44) is amended to read as follows:
2. The Legislature finds and declares that:
a. The Constitution of the State of New Jersey states that the Legislature shall provide for the maintenance and support of a thorough and efficient system of free public schools for the instruction of all children in the State between the ages of five and eighteen years. (N.J. Const. art. VIII, sec. 4, par.1).
b. The State, in addition to any constitutional mandates, has a moral obligation to ensure that New Jersey's children, wherever they reside, are provided the skills and knowledge necessary to succeed. Any school funding formula should provide resources in a manner that optimizes the likelihood that children will receive an education that will make them productive members of society.
c. Although the Supreme Court of New Jersey has held that prior school funding statutes did not establish a system of public education that was thorough and efficient as to certain districts, the Court has consistently held that the Legislature has the responsibility to substantively define what constitutes a thorough and efficient system of education responsive to that constitutional requirement.
d. Every child in New Jersey must have an opportunity for an education based on academic standards that satisfy constitutional requirements regardless of where the child resides, and public funds allocated to this purpose must be expended to support schools that are thorough and efficient in delivering those educational standards. In turn, school districts must be assured the financial support necessary to provide those constitutionally compelled educational standards. Any school funding formula should provide State aid for every school district based on the characteristics of the student population and up-to-date measures of the individual district's ability to pay.
e. New Jersey's current public school funding formula, established under the provisions of the "Comprehensive Educational Improvement and Financing Act of 1996," (CEIFA) P.L.1996, c.138, has not been used to calculate State aid for public schools since the 2001-02 school year. Any new school funding formula should account for changes in enrollment and other significant developments, providing relief to those districts that have experienced substantial enrollment increases.
f. The decisions in the Abbott cases have resulted in frequent litigation and a fragmented system of funding under which limited resources cannot be distributed equitably to all districts where at-risk children reside, instead dividing the districts sharply into Abbott and non-Abbott categories for funding purposes without regard to a district's particular pupil characteristics and leading to needlessly adversarial relationships among school districts and between districts and the State.
g. In the absence of a clear, unitary, enforceable statutory formula to govern appropriations for education, crucial funding decisions are made annually, in competition for limited State resources with other needs and requirements as part of the annual budget negotiation process, utilizing many different classes and categories of aid, leading to an uncertain, unpredictable, and untenable funding situation for the State and school districts alike.
h. This act represents the culmination of five years of diligent efforts by both the Executive and Legislative branches of State government to develop an equitable and predictable way to distribute State aid that addresses the deficiencies found in past formulas as identified by the Supreme Court. Working together toward this common goal, the Department of Education and the Legislature engaged nationally recognized experts in education funding and provided significant opportunities for stakeholder involvement and public input to assist in formulating and refining a comprehensive school funding model that has been validated by experts. The formula accounts for the individual characteristics of school districts and the realities of their surroundings, including the need for additional resources to address the increased disadvantages created by high concentrations of children at-risk.
i. The formula established under this act is the product of a careful and deliberative process that first involved determining the educational inputs necessary to provide a high-quality education, including specifically addressing the supplemental needs of at-risk students and those with limited English proficiency (LEP), and a determination of the actual cost of providing those programs. The formula provides adequate funding that is realistically geared to the core curriculum content standards, thus linking those standards to the actual funding needed to deliver that content.
j. In recognition of the unique problems and cost disadvantages faced by districts with high concentrations of at-risk students, it is appropriate to reflect in the formula a greater weight as the district's proportion of at-risk students increases. In addition, the new formula recognizes the disadvantages of an expanded group of students by including in the definition of at-risk those students who qualify for free or reduced-price lunch. Expanding the definition of at-risk students in this manner will significantly increase the resources flowing to districts with high concentrations of these low-income students.
k. In light of the demonstrable, beneficial results and success of the current Abbott preschool program, it is appropriate to build upon this success by incorporating in the formula an expanded high-quality preschool program for all children who qualify for free and reduced price meals in all districts. It is appropriate for the formula to acknowledge that at-risk children do not always receive the same educational exposure at an early age as their peers and to provide the additional resources necessary through high-quality preschool to prepare every child to learn and succeed.
l. [It is appropriate to reflect in this formula the inherent value of educating a child in the least restrictive environment and, whenever possible, in that child's neighborhood school alongside his peers. The new funding formula should provide incentives for keeping classified students in district.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
m. It is also appropriate to recognize in the formula the need for all schools to incorporate effective security measures, which may vary from district to district depending upon the at-risk student population and other factors, and to provide categorical funding to address these important requirements.
n. In recognition of the potentially wide variability in special education costs, even for the same category of disability, from district to district, it is appropriate for the new funding formula to mitigate the impact of that variability by establishing a census model based on the actual Statewide average excess cost of educating special education students and by providing for an increase in State aid for extraordinary costs incurred by districts.
o. It is imperative that any new school funding formula work in conjunction with the key school accountability measures that have been enacted in recent years to promote greater oversight, transparency, and efficiency in the delivery of educational services. These accountability measures include the New Jersey Quality Single Accountability Continuum, the "School District Fiscal Accountability Act," P.L.2006, c.15 (C.18A:7A-54 et seq.), P.L.2007, c.63 (C.40A:65-1 et al.) which established the duties and responsibilities of the executive county superintendent of schools, and P.L.2007, c.53 (C.18A:55-3 et al.).
p. Together with a renewed legislative focus on and commitment to providing sufficient means to maintain and support a high-quality system of free public schools in the State, a new funding formula supported by significantly increased State resources will ensure compliance with all statutory and constitutional mandates. Districts that were formerly designated as Abbott districts will be provided sufficient resources to continue those Court-identified programs, positions, and services that have proven effective while being provided the flexibility to shift resources and programmatic focus based on the needs of their students and current research.
q. The time has come for the State to resolve the question of the level of funding required to provide a thorough and efficient system of education for all New Jersey school children. The development and implementation of an equitable and adequate school funding formula will not only ensure that the State's students have access to a constitutional education as defined by the core curriculum content standards, but also may help to reduce property taxes and assist communities in planning to meet their educational expenses. The development of a predictable, transparent school funding formula is essential for school districts to plan effectively and deliver the quality education that our citizens expect and our Constitution requires.
(cf: P.L.2007, c.260, s.2)
12. Section 4 of P.L.2007, c.260 (C.18A:7F-46) is amended to read as follows:
4. a. The State Board of Education shall review and update the core curriculum content standards every five years. The standards shall ensure that all children are provided the educational opportunity needed to equip them for the role of citizen and labor market competitor.
The Commissioner of Education shall develop and establish, through the report issued pursuant to subsection b. of this section, efficiency standards which define the types of programs, services, activities, and materials necessary to achieve a thorough and efficient education.
b. By September 1 of 2010 and by September 1 every three years thereafter, the Governor, after consultation with the commissioner, shall recommend to the Legislature through the issuance of the Educational Adequacy Report for the three school years to which the report is applicable:
(1) the base per pupil amount based upon the core curriculum content standards established pursuant to subsection a. of this section;
(2) the per pupil amounts for full-day preschool;
(3) the weights for grade level, county vocational school districts, at-risk pupils, bilingual pupils, and combination pupils;
(4) the cost coefficients for security aid and transportation aid;
(5) the State average classification rate for general special education services pupils and for speech-only pupils;
(6) the excess cost for general special education services pupils and for speech-only pupils; and
(7) the [extraordinary special education aid thresholds] high needs placement threshold established pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
The base per pupil amount, the per pupil amounts for full-day preschool, the excess costs for general special education services pupils and for speech-only pupils, and the cost-coefficients for security aid and transportation aid shall be adjusted by the CPI for each of the two school years following the first school year to which the report is applicable.
The amounts shall be deemed approved for the three successive fiscal years beginning from the subsequent July 1, unless between the date of transmittal and the subsequent November 30, the Legislature adopts a concurrent resolution stating that the Legislature is not in agreement with all or any specific part of the report. The concurrent resolution shall advise the Governor of the Legislature's specific objections to the report and shall direct the commissioner to submit to the Legislature a revised report which responds to those objections by January 1.
(cf: P.L.2007, c.260, s.4)
13. Section 13 of P.L.2007, c.260 (C.18A:7F-55) is amended to read as follows:
13. a. Special education categorical aid for each school district and county vocational school district shall be calculated as follows:
SE = (RE x SEACR x AEC x 1/3) x GCA
where
RE is the resident enrollment of the school district or county vocational school district;
SEACR is the State average classification rate for general special education services pupils;
AEC is the excess cost for general special education services pupils; and
GCA is the geographic cost adjustment as developed by the commissioner.
For the 2008-2009 school year the excess cost shall be $10,898 for general special education services pupils. The excess cost amount shall be adjusted by the CPI in the 2009-2010 and 2010-2011 school years as required pursuant to subsection b. of section 4 of this act. For subsequent school years, the excess cost amount shall be established in the Educational Adequacy Report, with the amount adjusted by the CPI for each of the two school years following the first school year to which the report is applicable.
b. [Extraordinary special education aid for an individual classified pupil shall be available when the student is educated in a general education classroom, special education program, including but not limited to a resource program or special class program, or any combination of general education and special education programs and services, subject to the requirements and thresholds set forth in this section.
(1) In those instances in which a pupil is educated in an in-district public school program with non-disabled peers, whether run by a public school or by a private school for the disabled, and the cost of providing direct instructional and support services for an individual classified pupil exceeds $40,000, for those direct instructional and support services costs in excess of $40,000 a district shall receive extraordinary special education State aid equal to 90% of the amount of that excess in accordance with the provisions of paragraph (4) of this subsection.
(2) In those instances in which a pupil is educated in a separate public school program for students with disabilities and the cost of providing direct instructional and support services for an individual classified pupil exceeds $40,000, for those direct instructional and support services costs in excess of $40,000 a district shall receive extraordinary special education State aid equal to 75% of the amount of that excess in accordance with the provisions of paragraph (4) of this subsection.
(3) In those instances in which a pupil is educated in a separate private school for students with disabilities and the tuition for an individual classified pupil exceeds $55,000, for tuition costs in excess of $55,000 a district shall receive extraordinary special education State aid equal to 75% of the amount of that excess in accordance with the provisions of paragraph (4) of this subsection.
(4) Extraordinary special education State aid for an individual classified pupil shall be calculated as follows:
EA = ((ADC-$40,000) x .90) + (((AIC - $40,000) + (ASC - $55,000)) x .75)
where
ADC equals the district's actual cost for the direct instructional and support services in an in-district public school program as set forth in paragraph (1) of this subsection;
AIC equals the district's actual cost for direct instructional and support services in a separate public school program as set forth in paragraph (2) of this subsection; and
ASC equals the district's actual cost for tuition paid to a separate private school as set forth in paragraph (3) of this subsection.
(5) The receipt of extraordinary special education State aid for an individual classified pupil shall be conditioned upon a demonstration by the district that the pupil's Individualized Education Plan requires the provision of intensive services, pursuant to factors determined by the commissioner.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
c. [In order to receive funding pursuant to this section, a district shall file an application with the department that details the expenses incurred on behalf of the particular classified pupil for which the district is seeking reimbursement. Additional State aid awarded for extraordinary special education costs shall be recorded by the district as revenue in the current school year and paid to the district in the subsequent school year.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
d. [A school district may apply to the commissioner to receive emergency special education aid for any classified pupil who enrolls in the district prior to March of the budget year and who is in a placement with a cost in excess of $40,000 or $55,000, as applicable. The commissioner may debit from the student's former district of residence any special education aid which was paid to that district on behalf of the student.] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill)
e. The department shall review expenditures of federal and State special education aid by a district in every instance in which special education monitoring identifies a failure on the part of the district to provide services consistent with a pupil's Individualized Education Plan.
f. The commissioner shall commission an independent study of the special education census funding methodology to determine if adjustments in the special education funding formulas are needed in future years to address the variations in incidence of students with severe disabilities requiring high cost programs and to make recommendations for any such adjustments. The study and recommendations shall be completed by June 30, 2010.
g. A school district may apply to the commissioner to receive additional special education categorical aid if the district has an unusually high rate of low-incidence disabilities, such as autism, deaf/blindness, severe cognitive impairment, and medically fragile. In applying for the aid the district shall: demonstrate the impact of the unusually high rate of low-incidence disabilities on the school district budget and the extent to which the costs to the district are not sufficiently addressed through special education aid and extraordinary special education aid; and provide details of all special education expenditures, including details on the use of federal funds to support those expenditures.
(cf: P.L.2007, c.260, s.13)
14. Section 2 of P.L.2003, c.113 (C.46:15-7.1) is amended to read as follows:
2. a. For each conveyance or transfer of property, the grantor shall pay a supplemental fee of:
(1) (a) $0.25 for each $500.00 of consideration or fractional part thereof not in excess of $150,000.00 recited in the deed;
(b) $0.85 for each $500.00 of consideration or fractional part thereof in excess of $150,000.00 but not in excess of $200,000.00 recited in the deed; and
(c) $1.40 for each $500.00 of consideration or fractional part thereof in excess of $200,000.00 recited in the deed, plus
(2) for a transfer described in subsection (b) of section 4 of P.L.1975, c.176 (C.46:15-10.1), an additional $1.00 for each $500.00 of consideration or fractional part thereof not in excess of $150,000.00 recited in the deed which fee shall be collected by the county recording officer at the time the deed is offered for recording, except as provided by subsection b. of this section.
b. The supplemental fee imposed by subsection a. of this section shall not be imposed on a conveyance or transfer that is made by a deed described in section 6 of P.L.1968, c.49 (C.46:15-10) or on a transfer described in paragraph (1) or paragraph (2) of subsection (a) of section 4 of P.L.1975, c.176 (C.46:15-10.1).
c. The proceeds of the supplemental fees collected by the county recording officer pursuant to subsection a. of this section shall be accounted for and remitted to the county treasurer. An amount equal to $0.25 of the supplemental fee for each $500.00 of consideration or fractional part thereof recited in the deed so collected pursuant to this section shall be retained by the county treasurer for the purposes set forth in subsection d. of this section, and the balance shall be remitted to the State Treasurer for deposit to the Extraordinary Aid Account, which shall be established as an account in the General Fund. Payments shall be made to the State Treasurer on the tenth day of each month following the month of collection.
d. From the proceeds of the supplemental fees collected by the county recording officer pursuant to subsection a. of this section and retained by the county treasurer pursuant to subsection c. of this section, a county that received funding in State fiscal year 2003 for the support of public health services pursuant to the provisions of the Public Health Priority Funding Act of 1977, P.L.1966, c.36 (C.26:2F-1 et seq.) shall, at a minimum, fund its priority health services under that act in subsequent years at the same level as the level at which those services were funded in State fiscal year 2003 pursuant to the annual appropriations act for that fiscal year as the Commissioner of the Department of Health and Senior Services shall determine. In any county, amounts of supplemental fees retained that are in excess of the amounts required to be used for the funding of the county's priority health services under this subsection shall be used by the county for general county purposes.
e. The Legislature shall annually appropriate the entire balance of the Extraordinary Aid Account for the purposes of providing [extraordinary special education aid pursuant to section 13 of P.L.2007, c.260 (C.18A:7F-55) and] "Municipal Property Tax Relief Act" extraordinary aid pursuant to section 4 of P.L.1991, c.63 (C.52:27D-118.35).
f. Every deed subject to the supplemental fee required by this section, which is in fact recorded, shall be conclusively deemed to have been entitled to recording, notwithstanding that the amount of the consideration shall have been incorrectly stated, or that the correct amount of the supplemental fee, if any, shall not have been paid, and no such defect shall in any way affect or impair the validity of the title conveyed or render the same unmarketable; but the person or persons required to pay that supplemental fee at the time of recording shall be and remain liable to the county recording officer for the payment of the proper amount thereof.
(cf: P.L.2007, c.260, s.80)
15. This act shall take effect immediately.
STATEMENT
Under this bill, the State would assume the responsibility of entering into a contract with, and making payments to, entities that provide special education and related services to certain students with disabilities. If a school district anticipates that the cost of providing the special education and related services included in a student's Individualized Education Program (IEP) will exceed $55,000, then that student is considered to require a high needs placement. A school district would forward the IEP to the newly-created Office of High Needs Placement Funding within the Department of Education. That office would be responsible for entering into contracts with, and making payments to, providers of the special education and related services for these students. The office would make 10 equal monthly payments, starting on the first business day of October of that school year. Payments for summer and extended year programs will be paid on a monthly basis following submission of an invoice for services rendered. Additionally, the office would be responsible for:
· establishing and maintaining a directory of providers of special education and related services, including information regarding performance and cost; and
· implementing a quality rating system that will be developed for providers, ensuring that each provider undergoes a quality rating review at least once every three years.
The bill establishes a High Needs Placement Committee in the Office of High Needs Placement Funding. The committee members will include the commissioner and State Treasurer, or their designees, and 15 public members. Seven of the public members will be appointed the Governor, and the Senate President, Minority Leader of the Senate, the Speaker of the General Assembly, and Minority Leader of the General Assembly will each have two appointments. The committee would be responsible for:
· developing the quality rating system that will be used by the office to assess the performance of providers in terms of measurable outcomes in providing special education and related services to students who require a high needs placement;
· collecting, analyzing, and reporting data regarding the provision of special education and related services;
· providing recommendations in the event that the committee's analysis determines that school districts are identifying students as requiring special education and related services at an inappropriately high rate or failing to provide services in the least restrictive environment;
· conducting a longitudinal study on students with disabilities who cease to require a high needs placement; and
· examining the threshold criteria used to define "high needs placement."
Under the bill, a portion of the cost of educating students who require a high needs placement would be supported by deducting a portion of a school district's State aid payable by an amount of the general fund tax levy, equalization aid, special education categorical aid, and security categorical aid attributable to those students. The State aid payable to a district would also be reduced by the amount of federal funding awarded under the "Individuals with Disabilities Education Act" and the "Elementary and Secondary Education Act of 1965" attributable to the students. In the event that the amount to be deducted exceeds the district's total State aid payable, then the district would pay the difference to the State.
Under current law, extraordinary special education costs aid is awarded to school districts as a reimbursement of costs incurred in the prior school year in educating individual special education students whose costs exceed certain thresholds. This bill eliminates this category of State aid. However, in the first year in which the State would assume the costs of high needs placements, the State would continue to provide the extraordinary special education costs aid reimbursement for costs incurred in the prior school year.
