Archived Information

School Finance: School Choice

Proposed Change in Calculation of Special Education Tuition Rates for the School Choice Program

The school choice program (M.G.L. c.76 s.12B) requires the Department to set tuition rates for students with individual education plans reflecting the full cost of such services. These rates are not subject to the $5000 tuition rate cap. In the past, these rates have been calculated using average costs for various prototypes of services. In some instances, this created artificially high or low rates unrepresentative of the true cost of services. In addition, the use of prototype designations has been phased out.

We are proposing a new calculation procedure, based in large part on the procedures being implemented for the new special education circuit breaker program. Use of a consistent methodology across both programs for instructional costs will reduce the reporting burden for districts while at the same time providing a fair and predictable reimbursement rate for receiving districts. In addition, the school choice calculation will include an allowance for non-instructional costs as well as the actual costs of transportation.

This new procedure is described below in a proposed change to 603 CMR 10.07(3):

(3) For the purpose of determining the tuition for students with individual education plans under M.G.L. c.76, §12B, and under any other program for which the Department is required to establish a tuition reflecting the full cost of such services, said tuition shall include: (i) the cost of instructional services as calculated pursuant to 603 CMR 10.07(6); (ii) an allowance for overhead and indirect costs to be published annually by the Department based on the current state average per pupil allotments for non-instructional services in the foundation budget as defined in Chapter 70 of the General Laws; and (iii) actual costs to the receiving district, if any, for transportation services required by the student's individual education plan. School districts shall submit such information as the Department requires for the purposes of this section, in such form and within the filing deadlines established by the Department.

The Board of Education is expected to review this proposed change at its August meeting, at which time a formal notice of proposed rule-making will be issued and public comments solicited. This advance notice of the proposed change is being provided now because it is expected that the change will be implemented for fiscal year 2003. If you have any comments or questions, please contact Roger Hatch, DOE school finance programs administrator, by email at rhatch@doe.mass.edu or by phone at 781-338-6527.

7/2/02