July 29, 2011
(X)
(X)
Action Required
Date Due: 9/1/11
Informational
BULLETIN NO. 049-11 SPECIAL EDUCATION
TO:
Educational Service District Superintendents
School District Superintendents
Assistant Superintendents for Business and/or Business Managers
Educational Service District Special Education Offices
School District Special Education Directors
FROM:
Randy I. Dorn, State Superintendent of Public Instruction
RE:
Use of Funds: Individuals with Disabilities Education Act (IDEA 2004), Part B
CONTACT: Mary Ellen Parrish, Special Education Fiscal Program Coordinator
Phone: (360) 725-6075, Facsimile: (360) 725-6107
Email: MaryEllen.Parrish@k12.wa.us
This bulletin informs Local Education Agencies (LEAs) of the requirements pertaining to
the use of funds consistent with Part B of the Individuals with Disabilities Education Act
(IDEA 2004). LEAs should be aware of this information when planning and authorizing
expenditures for 2011–12. LEAs must assure operations consistent with all requirements
of Title 20 of the United States Code (20 USC) section 1400 et seq., CFR Part 300, and
WAC 392-172A and have board approved policies in place in compliance with the existing
federal and state requirements.
DISTRIBUTION OF FEDERAL FUNDS
The IDEA funding formula for Section 611 of Part B, allocates base amounts to states that
are equal to the amounts the state received from federal fiscal year 1999. Then, 85
percent of the remaining funds are allocated on the basis of the relative populations of
children, aged 3 through 21, who are the same age as children with disabilities for whom
the state ensures the availability of Free Appropriate Public Education (FAPE), and 15
percent of the remaining funds are allocated on the basis of the relative populations of
those children who are living in poverty.
BULLETIN NO. 049-11 SPED
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July 24, 2011
IDEA, Part B, Section 611 Flow-through is distributed under Catalog of Federal Domestic
Assistance (CFDA) number 84.027A; IDEA, Part B, Section 619 funds are distributed
under CFDA number 84.173.
The 2011–12 allocation tables for LEAs in Washington State are located at
http://www.k12.wa.us/SpecialEd/pubdocs/IDEA_Allocations_2011-12.pdf. These tables
reflect final enrollment data from the October Enrollment. Washington State school districts
are receiving 88 percent of federal IDEA funds in direct flow-through.
PERMISSIVE USE OF FUNDS
Funds provided to the LEA under IDEA, Part B may be used for services and aids that also
benefit non-disabled children, early intervening services, high cost education and related
services, and administrative case management.
Services and Aids that also Benefit Non-disabled Children - 20 USC § 1413(a)(4)(A)(i)
LEAs may use federal flow-through funds for the costs of special education and related
services, and supplementary aids and services, provided in a regular class or other
education-related setting to a child with a disability in accordance with the individualized
education program of the child even if one or more non-disabled children benefit from such
services. While federal regulation clarifies that Part B does not prohibit benefit to nondisabled children, it does not permit Part B funds to be expended in a regular class except
for special education and related services and supplementary aids and services to a child
with a disability in accordance with the child’s IEP. If special education and related
services are being provided to meet the requirements of the IEP for a child with a disability,
this provision permits other children to benefit.
Coordinated Early Intervening Services (CEIS) - 20 USC § 1413(a)(4)(A)(ii)
20 USC §1413(f)(1) allows an LEA up to 15 percent of the amount it receives under IDEA,
Part B for any fiscal year, less any amount reduced by the agency for Maintenance of
Effort (MOE) in combination with other amounts which may include amounts from other
educational funds, to develop and implement CEIS.
Population served includes students in kindergarten through Grade 12 with a particular
emphasis on students in kindergarten through Grade 3 who have not been identified as
needing special education or related services, but who need additional academic and
behavioral support to succeed in a general education environment. Allowable activities
include professional development for teachers and other school staff to enable the delivery
of scientifically-based academic and behavior interventions, including:
 Scientifically-based literacy instruction and instruction on the use of adaptive and
instructional software.
 The provision of educational and behavioral evaluations, services, and supports,
including scientifically-based literacy instruction.
BULLETIN NO. 049-11 SPED
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July 24, 2011
LEAs must designate the amount to be spent on CEIS in the 2011–12 Special Education
IDEA, Part B and Section 619 application. The maximum amount available for CEIS is
displayed on the application, however, LEAs should review the MOE provisions contained
in 20 USC § 1413(a)(2)(C)(iv) before budgeting amounts for approved activities. In some
cases, expenditures for CEIS may impact MOE calculations. Additionally, LEAs may
combine funds to carry out CEIS aligned with activities funded by the Elementary and
Secondary Education Act (ESEA) if those funds are used to supplement and not supplant
funds made available under ESEA for the activities and services.
Each LEA that develops and maintains CEIS must annually report to the Office of
Superintendent of Public Instruction (OSPI) the number of students served by CEIS and
the number of students served by CEIS who subsequently receive special education and
related services under IDEA during the preceding two-year period.
Schoolwide Programs under Title I of the ESEA - 20 USC § 1413(a)(2)(D)
LEAs may use federal flow-through special education funds to assist in the implementation
of schoolwide programs consistent with Title I, subject to the following formula and
conditions:
 Formula: Divide the amount the district receives for Part B by the number of eligible
students in the district, and then multiply that number by the number of eligible
students participating in the schoolwide program consistent with Title I.
For further information refer to Bulletin 082-10, Combining Funds in Title I, Part A
Schoolwide Programs.
High Cost Education and Related Services - 20 USC § 1413(a)(4)(A)(iii)
The federal statute provides an option for LEAs to establish and implement cost or risk
sharing funds to pay for high cost special education and related services. LEAs may do
this as part of a consortium, a cooperative for the LEA itself, or for LEAs working as a
consortium of which the LEA is a part.
Administrative Case Management - 20 USC § 1413(a)(4)(B)
An LEA may use IDEA, Part B funds to purchase appropriate technology for
recordkeeping, data collection, and related case management activities of teachers and
related services personnel providing services described in the individualized education
program of children with disabilities.
BULLETIN NO. 049-11 SPED
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July 24, 2011
APPLICATION FOR FUNDS
The 2011–12 LEA Application for IDEA, Part B Section 611 and Section 619 funds is
available at http://eds.ospi.k12.wa.us/iGrants/Default.aspx. The budget matrices and all
required reports must be completed and submitted no later than September 1, 2011.
 LEAs that submitted their 2011–12 IDEA, Part B Sections 611 and 619 budget
matrices through iGrants and all required reports (including, but not limited to,
signed Assurances and Excess Cost Template) by 5:00 p.m. on July 1, 2011, may
claim reimbursement for costs incurred from July 1, 2011. LEAs may start claiming
these costs in September 2011.
 LEAs that submitted their 2011–12 IDEA, Part B Sections 611 and 619 budget
matrices through iGrants and all required reports (including, but not limited to,
signed Assurances and Excess Cost Template) by 5:00 p.m. on September 1,
2011, may claim reimbursement for costs incurred on or after September 1, 2011.
LEAs may start claiming these costs in September 2011.
 LEAs that submitted their 2011–12 IDEA, Part B Sections 611 and 619 budget
matrices through iGrants, but have outstanding reports due to the Special Education
office, do not have budget approval to spend or claim IDEA funds until required
reports are received.
 To receive reimbursement for costs incurred from July 1, 2011, the LEA must
submit a request through the iGrants system by notifying our office using the Notes
tab of the LEA’s IDEA-B form package. Otherwise the LEA will only receive
reimbursement for costs incurred on or after the date required reports are received.
 LEAs may receive a hold on funding if any of pages 1–6 have not received final
approval 30 days after receiving initial feedback from OSPI.1
Budget approval will be given when all required reports are received (including, but not
limited to, signed Assurances and Excess Cost Template). If a more in-depth analysis of
the budget is needed, the LEA may be asked for further information.
PERIOD OF OBLIGATION & BUDGET REVISIONS
The grant period for the FY2012 allocations is from July 1, 2011, to September 30, 2013,
which includes the Tydings Amendment for an additional twelve months. The carryover
amount for the second year of the obligation period is budgeted through the grant revision
process. Remember that 100 percent carryforward of FY2011 IDEA Part B flow through
funds is allowable, however FY2012 carryforward is limited to 10 percent. The
proportionate share amount calculated in the IDEA application for private/home school
students with disabilities in your district is valid for one year only and must be carried over
if funds remain. Note: Districts may find it helpful to sub-code proportionate share
expenditures, so that carryforward, if applicable, can be easily calculated.
1
If an LEA receives a hold on funding, this means that the ability to claim and/or continue to claim 2011–12 IDEA
funds will be suspended until all required reports are received by the Special Education office.
BULLETIN NO. 049-11 SPED
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July 24, 2011
To reduce the clerical burden, LEAs are asked to carefully plan the year’s expenditures
and code accordingly. Each LEA should expend monies in accordance with the budget
documentation approved by the Special Education Office as a part of the grant application
process. An LEA must submit for approval by the Special Education Office a request for
revision of its approved budget when one or more of the following circumstances apply:
(i) The LEA intends to increase expenditures beyond the approved amount.
(ii) The LEA intends to change by more than ten percent of the subtotal “Budgeted
Direct Expenditures” from budget Forms SPI 1000B or 1100B the expenditures
within any activity total or object total.
(iii) The LEA intends to expend monies in any activity or object cell where no monies
were previously budgeted.
USE OF FUNDS
The LEA assures that amounts provided to it under Part B of IDEA will be expended in
accordance with the provisions of 20 USC 1413(a)(2):
(i) Shall be used only to pay the excess costs of providing special education and
related services to children with disabilities.
(ii) Shall be used to supplement state, local, and other federal funds and not supplant
such funds.
(iii) Shall not be used to reduce the level of expenditures for the education of children
with disabilities made by the LEA from local funds below the level of those
expenditures for the preceding fiscal year, except as explained in the MOE section
of this bulletin.
Excess costs are those costs for the education of an elementary school or secondary
school student with a disability that are in excess of the average annual per student
expenditure in an LEA during the preceding school year. An LEA must spend at least the
average annual per student expenditure on the education of an elementary school or
secondary school child with a disability before funds under Part B of the Act are used to
pay the excess costs of providing special education and related services.
Section 602(8) of the Act and 34 CFR § 300.16 require LEAs to compute the minimum
amount that must be spent for children with disabilities. Appendix A to Part 300 of the
federal regulations provides an example of the calculation. For your convenience, a prepopulated Federal Excess Cost Verification Template is available on Special Education
homepage at http://www.k12.wa.us/SpecialEd/default.aspx. LEAs should retain
documentation to demonstrate elementary and secondary compliance in the event of an
audit.
BULLETIN NO. 049-11 SPED
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July 24, 2011
MAINTENANCE OF EFFORT
Per 34 CFR § 300.204, an LEA may reduce the level of its expenditures under Part B of the
Act below the level of those expenditures from the preceding fiscal year if the reduction is
attributable to the following:
(i) The voluntary departure, by retirement or otherwise, or departure for just cause, of
special education or related services personnel.
(ii) A decrease in the enrollment of children with disabilities.
(iii) The termination of the obligation of the district, consistent with this part, to provide a
program of special education to a particular child with a disability that is an
exceptionally costly program, as determined by OSPI, because the child:
a. has left the jurisdiction of the district;
b. has reached the age at which the obligation of the district to provide FAPE to
the child has terminated; or
c. no longer needs the program of special education.
(iv) The termination of costly expenditures for long-term purchases, such as the
acquisition of equipment or the construction of school facilities.
(v) The assumption of cost by the high-cost fund operated by the state education agency.
Exceptions to Maintenance of Effort
LEAs may use, as local funds, up to 50 percent of the increase in federal flow-through
funding from the prior year to meet the MOE requirements of IDEA. IDEA 2004, 20 USC §
1413(f) also permits LEAs to use up to 15 percent of the Part B funds received for CEIS for
students who have not been identified as students with disabilities under IDEA. An LEA
that chooses to do this must count the amount used for coordinated early intervening
services towards any funds treated as local funds in calculating MOE. The federal Office of
Special Education Programs (OSEP) provides two detailed examples for how the CEIS
funds can count towards the MOE reduction flexibility.
Example 1: The maximum amount that the LEA may use for CEIS is greater than the
amount that may be used for local MOE reduction.
Prior Year’s Allocation:
Current Year’s Allocation:
Increase:
Maximum Available for MOE Reduction (50%):
Maximum Available for CEIS (15%):

$900,000
$1,000,000
$100,000
$50,000
$150,000
If the LEA chooses to set aside $150,000 for CEIS, it may not reduce its MOE
(MOE maximum $50,000 less $150,000 for CEIS means $0 can be used for
MOE reduction).
BULLETIN NO. 049-11 SPED
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July 24, 2011




If the LEA chooses to set aside $100,000 for CEIS, it may not reduce its MOE
(MOE maximum $50,000 less $100,000 for CEIS means $0 can be used for
MOE reduction).
If the LEA chooses to set aside $50,000 for CEIS, it may not reduce its MOE
(MOE maximum $50,000 less $50,000 for CEIS means $0 can be used for MOE
reduction).
If the LEA chooses to set aside $30,000 for CEIS, it may reduce its MOE by
$20,000 (MOE maximum $50,000 less $30,000 for CEIS means $20,000 can be
used for MOE reduction).
If the LEA chooses to set aside $0 for CEIS, it may reduce its MOE by $50,000
(MOE maximum $50,000 less $0 for CEIS means $50,000 can be used for MOE
reduction).
Example 2: The maximum amount that the LEA may use for CEIS is less than the amount
that may be used for MOE reduction.
Prior Year’s Allocation:
Current Year’s Allocation:
Increase:
Maximum Available for MOE Reduction (50%):
Maximum Available for CEIS (15%):





$1,000,000
$2,000,000
$1,000,000
$500,000
$300,000
If the LEA chooses to use no funds for MOE, it may set aside $300,000 for CEIS
(CEIS maximum $300,000 less $0 means $300,000 for CEIS).
If the LEA chooses to use $100,000 for MOE, it may set aside $200,000 for
CEIS (CEIS maximum $300,000 less $100,000 means $200,000 for CEIS).
If the LEA chooses to use $150,000 for MOE, it may set aside $150,000 for
CEIS (CEIS maximum $300,000 less $150,000 means $150,000 for CEIS).
If the LEA chooses to use $300,000 for MOE, it may not set aside anything for
CEIS (CEIS maximum $300,000 less $300,000 means $0 for CEIS).
If the LEA chooses to use $500,000 for MOE, it may not set aside anything for
CEIS (CEIS maximum $300,000 less $500,000 means $0 for CEIS).
LEAs are encouraged to use the Preliminary Special Education Maintenance of Effort
Tests Template located at http://www.k12.wa.us/SpecialEd/default.aspx when planning
their special education program.
Prohibition
If OSPI determines that an LEA is unable to meet the requirements of Part B, including the
targets of Washington State’s performance plan, or OSPI has taken action against an LEA
under 20 USC § 1416, OSPI shall prohibit the LEA from reducing the level of expenditures.
BULLETIN NO. 049-11 SPED
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July 24, 2011
MONITORING, TECHNICAL ASSISTANCE, AND ENFORCEMENT
OSPI has the responsibility of monitoring compliance with federal and state requirements
under the IDEA 2004. OSPI’s outcome-based monitoring system reflects the federal intent
to emphasize a data-driven, systemic approach to compliance and improvement of results
for children with disabilities. District data, as well as qualitative information provided by
LEAs in their annual federal fund applications, are reviewed on an ongoing basis in order
to determine which LEAs are required to move on to a more in-depth level of inquiry, which
may involve a self-study or systems analysis/onsite visit. Any issues of non-compliance
identified by OSPI must be corrected as soon as possible, but no later than one year from
identification. In addition, states are required to make determinations annually about the
performance of each LEA, using criteria including: (1) unresolved audit findings, (2) timely
correction of identified non-compliance, (3) submission of timely and accurate data, and (4)
district performance on the compliance indicators.
Should you have questions regarding this bulletin, please contact Mary Ellen Parrish,
Special Education Fiscal Program Coordinator, at (360) 725-6075 or email
MaryEllen.Parrish@k12.wa.us. The agency TTY is (360) 664-3631. This information is
also available on the OSPI website at http://www.k12.wa.us/bulletinsmemos/.
SPECIAL PROGRAMS, SECONDARY EDUCATION, SCHOOL IMPROVEMENT, AND
FEDERAL ACCOUNTABILITY
Bob Harmon
Assistant Superintendent
Douglas H. Gill, Ed.D, Director
Special Education
RD:mep
OSPI provides equal access to all programs and services without discrimination based on sex, race, creed, religion, color, national
origin, age, honorably discharged veteran or military status, sexual orientation including gender expression or identity, the presence
of any sensory, mental, or physical disability, or the use of a trained dog guide or service animal by a person with a disability.
Questions and complaints of alleged discrimination should be directed to the Equity and Civil Rights Director at (360) 725-6162 or
P.O. Box 47200 Olympia, WA 98504-7200.