Current through Register Vol. 48, No. 38, September 20, 2024
a) The initial per-pupil contract amount set
forth in the provider's contract with a district shall be the lesser of:
1) the district's per-child allocation under
Part A of Title I of NCLB; or
2)
the provider's reasonable estimate of its actual cost of services during the
SES reporting period that it seeks to charge to the district pursuant to the
contract.
b) A
provider's reasonable estimate pursuant to subsection (a)(2) of this Section
shall be established using the four expense categories set forth in Section
675.210(a)
of this Part (i.e., program expenses, occupancy expenses, curriculum
development expenses, and administrative and general expenses).
1) To the extent that any category of
expenses in the estimate exceeds the per-pupil amount for the same category set
out in the provider's district program cost report, the provider shall itemize
the expenses and attach a specific justification for the increase based upon
additional expenditures the provider reasonably expects to incur for reasons
such as inflation, increased labor costs, or budgeted equipment expenditures or
for another legitimate business purpose (e.g., additional investment in
professional development for staff, increase in profit margins to reflect
industry standards).
2) An estimate
by a provider that will use a district's facilities shall specify the
provider's assumptions for any occupancy costs and shall reflect the per-pupil
savings the provider reasonably expects to receive, based upon:
A) operational savings associated with using
the district's facilities;
B) the
value of real estate provided by the district; and
C) the business advantages resulting from
access to the district's facilities.
3) Except as otherwise provided in
subsections (b)(4) and (b)(5) of this Section, at least 60 percent of funds
paid to a provider from a district's Title I, Part A, allocation shall be used
for either direct program expenses or occupancy expenses.
4) Any provider in good standing (with or
without reservations) and with student achievement outcomes of "above
standards" shall be exempt from the percentage restriction set forth in
subsection (b)(3) of this Section, provided that the provider submits all cost
estimates and cost reports required by this Part and accurately displays its
elements of cost in all instances. The exemption provided by this subsection
(b)(4) shall also be available on the same basis to any Web-based provider
whose per-pupil district program cost is less than 50 percent of the mean
actual cost reported for the prior year for either providers serving the
Chicago Public Schools or providers serving all other school districts, as
applicable to the district with respect to which the provider desires the
exemption.
5) A provider whose
reasonable estimate for administrative and general expenses is not more than 25
percent of the district's Title I, Part A, allocation per pupil may petition
the State Superintendent for permission to spend less than the amount required
for direct program expenses and occupancy expenses under subsection (b)(3) of
this Section in order to allocate increased funds to curriculum development
expenses. The petition must be received by the State Superintendent within 20
days after the provider's receipt of notification of its status in accordance
with Section
675.90
of this Part and must:
A) demonstrate that
the proposed cost structure will contribute to the increased academic
achievement of students served and will allow the provider to deliver a program
in accordance with its approved application;
B) specify the amount the provider seeks to
establish for each of the four expense categories, including the specific cost
items the provider is seeking to increase; and
C) demonstrate that the amounts specified as
required by subsection (b)(5)(B) of this Section are properly attributed to the
district in accordance with the cost principles set forth in Section
675.210 of
this Part.
c)
If the provider receives benefits from the use of district facilities not
accounted for in the provider's assumptions, the provider's reasonable estimate
pursuant to subsection (a)(2) of this Section shall be adjusted
accordingly.
d) Prior to executing
a contract with a district, a provider may petition ISBE for permission to
revise the reasonable estimate provided pursuant to Section
675.50(i)
of this Part, which shall be granted if based on administrative requirements
imposed by the district that were not reasonably foreseeable when the estimate
was submitted. After the execution of a contract with a district, a provider
may seek a revision to its reasonable estimate in accordance with its
contractual agreement with the district.
e) If permitted in the provider's contract
with the district, the district may withhold no more than 10 percent of the
total amount payable to the provider until such time as the provider reports to
ISBE its district program costs, the amount paid by or invoiced to the
district, and the number of students enrolled during the SES reporting period
to which the contract relates. If the actual cost for the SES reporting period
to which the contract relates is less than the amount paid by or invoiced to
the district based upon the initial per-pupil contract amount set forth in the
contract, and provided the contract permits a cost adjustment, the district
shall be responsible for paying to the provider only the actual cost of
services for the SES reporting period to which the contract relates. The
district shall not be liable for actual costs, on a per-pupil basis, that
exceed the provider's reasonable estimate established for the relevant expense
category in accordance with this Section.
