Nebraska Administrative Code
Topic - EDUCATION, DEPARTMENT OF
Title 92 - NEBRASKA DEPARTMENT OF EDUCATION
Chapter 51 - REGULATIONS AND STANDARDS FOR SPECIAL EDUCATION PROGRAMS
Section 92-51-011 - School District Budget Development and Reimbursement Process for School Age Programs

Universal Citation: 92 NE Admin Rules and Regs ch 51 ยง 011

Current through March 20, 2024

011.01 General Information

011.01A The special education assurances and flexible funding application of a school district and approved cooperative shall be submitted electronically via the NDE website to the Office of Special Education. Any amendment to the assurances and flexible funding application shall be subject to the same review as the initial assurances and flexible funding application.
011.01A1 The fiscal year for school age special education programs shall be September 1 to August 31.

011.01B The allowable and reimbursable costs for special education services are restricted to the following items, which shall be documented and are subject to audit;
011.01B1 Salaries of special education personnel as per 92 NAC 51-010 and clerical personnel directly associated with special education services;

011.01B2 School district or approved cooperative share of fringe benefits for the special education staff:
011.01B2a Fringe benefits shall be limited to social security, retirement programs, workers' compensation, health, life, long term disability, and unemployment insurance.

011.01B3 Inservice costs directly related to the special education programs provided that:
011.01B3a Allowable inservice expenditures are costs directly related to special education programs. Allowable activities must be designed to contribute to the professional growth and competence of staff serving children with a disability and their parents through workshops, demonstrations, and school visits. Tuition and expenses of attending special education courses for college credit are not allowed.

011.01B3b Allowable costs include: presenter fees and expenses; mileage; board and room of staff to attend inservice programs; costs of substitutes for staff attending inservice programs; cost of inservice programs which directly assist special and regular educators in providing appropriate programs for children with a verified disability in their classrooms; and costs of special education workshop attendance.

011.01B3c Costs of attending meetings conducted by organizations where only organizational business is conducted is not an allowable reimbursable expense.

011.01B4 Travel costs incurred by the school district or approved cooperative in delivering the special education programs including costs for:
011.01B4a Children attending nonpublic schools who are required to leave the nonpublic school to receive special education and related services; and

011.01B4b Children who are assigned to more than one attendance center to receive special education.

011.01B5 Travel costs incurred by parents to attend educational planning meetings held outside the resident district which are necessary to provide a free appropriate public education or to visit their child who is assigned to a residential program outside the district as agreed upon through the lEP process.

011.01B6 Costs of transporting children with a disability which are authorized under Neb. Rev. Stat. § 79-1129 and Section 014 are budgeted and claimed separately;

011.01B7 Instructional equipment including assistive technology devices and equipment, supplies and publications necessary to aid the child in accomplishing the goals and objectives of the individual education program (lEP) are allowable reimbursable costs under this Chapter. The equipment, supplies, and publications shall be used by the child in association with the implementation of the child's lEP or evaluation. This shall also include equipment, supplies, and publications used by staff when instructing a child with a verified disability; when evaluating a child who is suspected of having a disability; or when reevaluating a child with a verified disability. Allowable and reimbursable costs shall include printing, publication and postage costs that are necessary to carry out the provisions of this Chapter. This shall not include equipment, supplies, and publications used by staff for administrative purposes. This shall not include personal equipment and supplies or life support equipment. When equipment is used for purposes other than for special education, the school district or approved cooperative shall only claim the applicable prorated portion for special education payment.

011.01B8 Those contracted special education services in which children with a disability are served by a service agency whose special education programs and rates have been approved by the Department of Education; and

011.01B9 Costs of acquisition (purchase, lease, lease-purchase), renovation and operation of a mobile unit(s) (i.e., trailers, mobile homes, vans, or any combination thereof) used, or to be used, as mobile learning centers for delivery of special education services to any eligible children with a disability. Reimbursement shall be subject to approval by the Nebraska Department of Education and shall be based on allowable depreciation and reimbursement as per Section 014.
011.01B9a The maximum number of mobile units a school district or approved cooperative may purchase shall be based on the total enrollment of both public and nonpublic schools as per the following schedule:
011.01B9a(1) 1 to 10,000 total enrollment for the maximum purchase of one (1) mobile unit;

011.01B9a(2) 10,001 to 20,000 total enrollment for the maximum purchase of two (2) mobile units;

011.0189a(3) 20,001 to 30,000 total enrollment for the maximum purchase of three (3) mobile units;

011.01B9a(4) 30,001 to 40,000 total enrollment for the maximum purchase of four (4) mobile units;

011.01B9a(5) 40,001 to 50,000 total enrollment for the maximum purchase of five (5) mobile units; and

011.01B9a(6) all districts with an enrollment exceeding 50,001 for the maximum purchase of six (6) mobile units.

011.01B10 Costs for support services, as defined in Neb. Rev. Stat. § 79-1125.01 and 92 NAC 51-003.60, identified in 92 NAC 51-011.05 as the Flexible Funding Option.

011.01C The adjusted average per pupil cost of the preceding year or a portion of that cost shall be calculated according to the following criteria:
011.01C1 For Level I special education services the school district is considered to have expended its adjusted average per pupil cost for each child with a disability who participates in a special education support service(s) for an aggregate of not more than three hours per week.

011.01C2 For Level II special education classroom services in which a child with a disability participates more than an aggregate of three hours per week, the school district shall pay that portion of the adjusted average per pupil cost for that portion of the instructional time devoted to the special education activity;

011.01C3 For Level III special education contractual services the school district shall pay an amount equal to the average per pupil cost (program per pupil cost) of the service agency of the preceding year to the agency providing the educational program for each child with a disability. In deriving allowable excess cost, the district shall deduct its adjusted average per pupil cost from the cost of the program contracted from the service agency;

011.01C4 When a school district or approved cooperative provides or contracts for a summer school special education program for a child with a verified disability, the cost of such program will be considered for allowable excess cost reimbursement if the child's needs for such program can be verified by review of the lEP.

011.01D Student Special Education Full Time Equivalency (FTE) shall be determined by calculating the percent of aggregate time a child receives special education and related services. In calculating student special education full-time equivalency, time spent in transportation, extended school day and extended school year services are excluded from the aggregate time.
011.01D1 The aggregate amount of a child's special education FTE includes:
011.01D1a The amount of time the child spends in a separate setting other than the regular classroom; and

011.01D1b The amount of time the child with a disability spends in the regular classroom receiving instruction as indicated in the child's lEP from special education staff.

011.01D2 Full-time equivalency (FTE) is calculated each year.

011.02 General Limitation in Budget Development

011.02A Only children with verified disabilities shall receive special education services. This shall include the initial evaluation of a child with a suspected disability, regardless of the outcome of the verification decision. (See Section 006.) Budget development may also include those children receiving support services as defined in 92 NAC 51-003.60.

011.02B Age limits
011.02B1 School age budgets shall be limited to those children with disabilities from age five through the school year in which the child reaches age twenty-one and those children receiving support services as defined in 92 NAC 51-003.60.

011.02B2 A child is age five if that child has reached the age of five years or will reach such an age on or before July 31 of the current school year.

011.02B3 A school district or approved cooperative is eligible for reimbursement for a child's special education program until the end of the school year in which his or her twenty-first birthday occurs.

011.02C Administration and Supervision
011.02C1 Supervision of special education programs is an allowable expenditure for up to an amount not to exceed 8% of the school district's or approved cooperative's allowable school age program costs, minus the cost of program supervision. Administration and supervision includes clerical costs directly associated with the supervision of special education programs.

011.02C2 The cost of a superintendent or principal, hired for the purpose of supervising general education, shall not be included in allowable excess cost for special education.

011.02D Related services for a child with a verified disability are reimbursable if the services are listed in the lEP and are necessary for the achievement of educational goals as stated in the lEP.

011.02E Any program that provides residential care shall show the costs of such care separately from the costs of the education program. (See 92 NAC 53.)

011.03 Budget Development for Levels I, II, III

011.03A Level I Special Education Services
011.03A1 The expenditures for Level I (not more than an aggregate of three hours per child per week) special education service programs shall be considered for allowable excess cost reimbursement under the following conditions:
011.03A1a The programs are owned and operated by the school district or approved cooperative and the expenditures are within the allowable categories as stated in Section 011; and

011.03A1b The reimbursement to a school district or approved cooperative contracting for Level I services shall be limited to the rates approved by Commissioner or designee.

011.03B Level II Special Education Services
011.03B1 The expenditures for Level II (more than an aggregate of three hours per child per week) special education services shall be considered for allowable excess cost reimbursement under the following conditions:
011.03B1a The school district or approved cooperative has documented and contributed the portion (total or prorated amount for a full day program) of the adjusted average per pupil cost into the program; and

011.03B1b The expenditures are within the allowable categories as stated in Section 011.

011.03C Level III Special Education Contractual Services
011.03C1 The school district or approved cooperative may contract for any or all special education programs with approved service agencies.
011.03C1a Those school districts or approved cooperatives contracting for services shall have the service agency specify the cost for each service being provided by the service agency. Reimbursement to such school districts or approved cooperatives shall be limited to the NDE approved rates and the amount of time such services were provided to children with verified disabilities.

011.04 Final Financial Reports

011.04A General Procedures
011.04A1 Excess cost shall mean the difference between (1) the total allowable cost of the special education programs excluding residential care, and (2) the number of children (full time equivalency) in the special education program multiplied by the adjusted average per pupil cost of the resident school district of each child for the preceding year.

011.04A2 Each school district shall determine an adjusted average per pupil cost.
011.04A2a The adjusted average per pupil cost is to be determined by subtracting those eligible special education expenditures which were included as costs from the total instructional expenditures shown on the Total Instruction line of the district's Annual Financial Report for the previous school year. Divide the result by the total ADM (Average Daily Membership) as reported in the Annual Financial Report for the same year.

011.04B Payments
011.04B1 Payments shall be made by the Nebraska Department of Education to the school district of residence, cooperative of school districts, or educational service unit each year in a minimum of seven payments between the fifth and twentieth day of each month beginning in December. Additional payments may be made based upon additional valid claims submitted. Such payments will be based upon the final financial reports submitted on forms or in a manner prescribed by the Office of Special Education which shall include the following:
011.04B1a Allowable expenditures for the preceding school fiscal year including any costs for the Flexible Funding Option.

011.04B1b A list of all special education personnel and their FTE;

011.04B1c Tuition received from contracts and other sources;

011.04B1d Certification of authorized officer of the school board or authorized official of an approved cooperative that the reported expenditures have been paid;

011.04B1e A copy of the billings from the service agencies for contracted programs; and

011.04B1f Student Special Education Full Time Equivalency as defined by 92 NAC 51-011.01D for Level II and Level III students.

011.04B2 Such final financial reports shall be submitted electronically via the NDE website to the Department of Education on or before October 31 of each year for the preceding school fiscal year.

011.04B3 A school district or approved cooperative reimbursed for ineligible expenditures, shall be required to return to the Department of Education the amount determined to be ineligible or the amount shall be deducted from subsequent special education payments.

011.04B4 The Department of Education shall withhold any reimbursement provided under Neb. Rev. Stat. § 79-1142, to school districts or approved cooperatives which, after final determination by the Department of Education, received funds in excess of the determined allocation for the previous year. Payments which are withheld shall be no greater than the amount of overpayment. The Department of Education shall maintain an accurate account and a record of the reasons for such overpayments and the manner in which adjustments were made.

011.04B5 Supplementary amendments to any school age final financial report previously approved by the Office of Special Education may be submitted to the Office of Special Education for review and approval within three years of the original due date. Approved amendments may be submitted by the Department of Education to the Legislature for consideration of a supplemental appropriation.

011.04C Determination and Scheduling of Payments
011.04C1 For special education and support services provided, the Nebraska Department of Education shall reimburse each school district in the following school fiscal year a pro rata amount determined by the State Board of Education from appropriations for special education approved by the Legislature and based on allowable excess costs for all special education programs and support services. Cooperatives of school districts or educational service units shall also be eligible for reimbursement for cooperative programs pursuant to this subsection if such cooperatives or educational service units have complied with the reporting and approval requirements of Neb. Rev. Stat. § 79-1155 for cooperative programs which were offered the preceding year.

011.04C2 The amount appropriated by the Legislature for special education programs including support services (Flexible Funding Option) shall be the basis for reimbursement. Payments authorized by Neb. Rev. Stat. § 79-1142 shall be made only to a school district or approved cooperative.

011.04C3 Whenever there are due dates specified in this Chapter for submission of required documents, the appropriate items shall be submitted to the Department of Education. Office of Special Education on those dates.

011.04C4 All reports required by this Chapter for submission by school districts and approved cooperatives shall be made in accordance with 92 NAC 51-011.04C3. Failure to do so will result in the implementation of the procedures specified in 92 NAC 51-004.14.

011.05 Flexible Funding projects are optional for school districts or approved cooperatives and are intended for students not identified or verified for special education services but who demonstrate a need in the general curriculum. A school district or approved cooperative choosing to exercise the Flexible Funding Option must submit an application containing a narrative and proposed budget. Proposals shall be submitted electronically via the NDE website to the Nebraska Department of Education, Office of Special Education.

011.05A As part of the Flexible Funding Option Application, the narrative shall describe the support services designed for the targeted student subgroup who would benefit from preventative support services within the context of the general curriculum. The narrative must include:
011.05A1 An estimate of the annual number of students to be served;

011.05A2 The process(es) used in identifying the intended target student subgroup;

011.05A3 Methodology to be used including but not limited to:
011.05A3a The strategies and interventions to be applied;

011.05A3b The staff development activities to be funded for carrying out activities described in the proposal;

011.05A3c The intended student outcomes resulting from implementation;

011.05A3d How the proposed services are different from services currently available to the targeted student subgroup;

011.05A3e The proposed annual measurements that will be used to document changes in student performance; and

011.05A3f If the proposal is linked to school district or building level school improvement activities, information describing the relationship to the School Improvement Action Plan; and

011.05A4 The name of the person(s) responsible for proposal implementation as well as a mailing address, e-mail, fax and phone number.

011.05B Flexible Funding Option Reimbursement
011.05B1 Reimbursement for support services as defined in 92 NAC 51-003.60 shall be limited to a percentage established by the State Board of Education not to exceed ten percent of the school district's or approved cooperative's total allowable reimbursable cost for all special education programs and support services.

011.05B2 Costs shall be limited to allowable costs as defined in Section 011 and the cost of salary and fringe benefits of general education staff providing support services.

011.05B3 Payments will be based upon the costs reported in the Final Financial Report and contingent upon completion and approval of a final report containing actual project costs and a report of student progress including the requirements of 92 NAC 51-012.07D. Payments will be made at the same percentage rate as for all special education reimbursement.

011.05C The fiscal year for the Flex Funding Option shall be September 1 to August 31.

011.06 Ward of the State or Court With a Disability

011.06A When a ward of the state or court has been placed in a school district other than the district in which he or she resided at the time he or she became a ward and such ward does not reside in a foster family home licensed or approved by the Department of Health and Human Services or a foster home maintained or used by the Department of Correctional Services pursuant to Neb. Rev. Stat. § 83-108.04 or has been placed in any institution which maintains a special education program which has been approved by the Nebraska Department of Education and such institution is not owned or operated by the district in which the student resided at the time the student became a ward, the cost of his or her education and the required transportation costs associated with the child's education shall be paid by the Nebraska Department of Health and Human Services under rules and regulations prescribed by the Department of Health and Human Services and the student remains a resident of the district in which the student resided at the time he or she became a ward. Any student who is a ward of the state or court who resides in a foster family home licensed or approved by the Department of Health and Human Services or a foster home maintained or used by the Department of Correctional Services pursuant to Neb. Rev. Stat. § 83-108.04 is a resident of the district in which the student resided at the time the student became a foster child, unless it is determined under Neb. Rev. Stat. §§ 43-1311 or 43-1312 that the student will not attend such district in which case the student shall be deemed a resident of the district in which the foster family home or foster family is located and shall be claimed in the final financial report of the school district or approved cooperative in which the foster family home or foster home is located.

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