OAR 581-023-0104: Reimbursement to School Districts for Children with High Cost Disabilities

(1) Consistent with the provisions of this rule, a school district may apply to the Department for reimbursement from the high cost disability fund when combined district and ESD general fund expenditures for special education and related services for any student eligible and served under IDEA exceed $30,000 in a fiscal year. (2) To be eligible for the reimbursement, the school district shall have: (a) Determined that the student is eligible for special education and related services under one of the disability categories set forth in OAR 581-015-2130 through 581-015-2180; (b) Provided services to the student on the basis of the student's current or previous individualized education program in effect during the fiscal year; and (c) Submitted a timely application as per Department requirements. (3) The Department shall only distribute the reimbursement to a school district for: (a) Expenditures exceeding $30,000 for special education and related services that are required by the individualized education program of an individual student with a disability. Qualifying expenditures include those incurred by the school district and those incurred by the ESD through the resolution process. (b) Transportation expenditures, exclusive of local, state and federal reimbursements. (c) Special education general fund expenditures, exclusive of federal sources, as set forth in the Maintenance of Effort requirements of the federal IDEA. District and school level administrative expenditures (e.g. salaries) may be included by first averaging the expenditures across all the special education students enrolled as identified on the most recent SECC, then applying the average to the student for whom the district is requesting reimbursement. Similarly, teacher and educational assistant salaries must be averaged across all the special education students for whom the teacher or assistant provided instruction during the school year. (4) Expenditures not eligible for reimbursement include: (a) Regional Program expenditures; and (b) Expenditures associated with facility operations and maintenance (e.g., heat, electricity, custodial services). (5) In December of each year, school districts will provide the Department with an estimate of the aggregate number of students eligible for reimbursement from the High Cost Disabilities Fund and the total estimated aggregate amount of reimbursable expenditures, including ESD expenditures that will be incurred during the school year. As requested by the Department, districts will also report during the school year, updated information listing eligible students, SDID, names, estimated expenditures, and other information as requested. (6) A school district may submit an application for each student identified who meets the criteria set forth in section (2) and (3) of this rule. (7) The Department shall provide school districts with an application that shall require documentation that identifies all the school districts and ESD's expenditures for each student. Additional supporting documentation, subject to ODE review, may include a copy of the contract(s) between the school district and the service provider(s), invoices reflecting actual expenses, and any additional documentation of expenditures incurred as determined by the Department. These documents must be maintained at the District for at least three years after the submission of the student-level data. (8) The Department shall develop and implement a process for reviewing applications. (9) The Department shall prorate the distribution of funds for each school year to eligible school districts if sufficient funds are not available. (10) Based on the outcome of section (8), the Department will exclude from reimbursement those expenditures deemed excessive, ineligible or unsubstantiated. (11) Funds will be distributed to districts on or before May 15 for the current fiscal based on expenditure estimates. Adjustments will be made May 15 of the following year based on audited data and Department reviews of district records. (12) The decision of the Department regarding reimbursement of costs pursuant to this rule shall be final.