The High Cost Fund (HCF) award period for the 2009-2010 school year is October 1, 2009, through August 31, 2010.

HIGH NEED CHILD WITH A DISABILITY

A high need child with a disability financially impacts the budget of the local educational agency (LEA) due to the high costs associated with providing direct special education and related services to the high need child with disabilities.

When the LEA has complied with the MAINTENANCE OF EFFORT(MOE) and EXCESS COSTS frameworks, Individuals with Disabilities Education Act (IDEA) Part B funds provided to the LEA may be used according to the USE OF IDEA PART B FORMULA AMOUNTS PERMISSIVE framework.

For fiscal year 2010 and fiscal year 2011, the State will reserve ten percent of the amount of funds reserved for other State-level activities to be under State control until disbursed to the LEA to support a specific child who qualifies under the State plan for the HCF for the purpose of assisting the LEAs (including a charter school that is the LEA or a consortium of LEAs) in addressing the needs of high need children with disabilities. 

The costs associated with educating a high need child with a disability are only those:

• Costs associated with providing direct special education and related services to the child that are identified in that child's individualized education program (IEP), including the cost of room and board for a residential placement determined necessary, consistent with the least restrictive environment (LRE) requirements to implement the child's IEP; and

• Costs incurred during the HCF program effective dates.

RESTRICTIONS

The LEA must not use the HCF to:

• Limit or condition the right of a child with a disability who is assisted under the IDEA to receive a free appropriate public education (FAPE) in the LRE;

• Support legal fees, court costs, or other costs associated with a cause of action brought on behalf of a child with a disability to ensure FAPE for the child; or

• Pay costs that otherwise would be reimbursed as medical assistance for a child with a disability under the State Medicaid program.

Disbursements from the HCF for the cost of residential care and treatment will be limited to the portion of the LEA's 25 percent residential set aside amount being used for the specific high need child and may not be fully funded.

ELIGIBILITY CRITERIA

• Has not violated the LRE requirements of the IDEA;

• Has not lapsed IDEA Part B Formula or Formula Deaf funds in the previous school year;

• Does not roll forward 80 percent or more of its IDEA Part B Formula funds from the previous year; and

• Has complied with all systems of accountability and reporting to the Texas Education Agency (TEA) according to the ADMINISTRATION OF PROGRAM INFORMATION framework, including but not limited to:

• Accountability ratings, performance-based monitoring, compliance, fiscal reports, and dispute resolution processes.

FUNDING MECHANISM FOR DISTRIBUTION OF THE HIGH COST FUND

The LEA must complete a HCF Eligibility Application which consists of a student-specific application for each specific high need child with a disability who meets the definition of a high need child in the State plan.

The LEA award amounts will be calculated based on the total amount being requested and the amount of funds available:

• The average percentage of the LEA's roll forward funds from the previous three school years will be considered when determining the amount awarded for HCF; and

• The greater the roll forward amount, the greater the reduction in the amount awarded for HCF.

To address the financial impact on the district, the percentage of the adjusted request amount to the LEA's maximum entitlement from the previous school year will be considered when determining the amount awarded for HCF.

The award amounts may not be fully funded based on the total dollar amount requested by the LEAs.

Failure to budget the awarded funds will result in loss of the funds.

The LEAs must create and maintain adequate and sufficient documentation demonstrating that expenditures pertained to the HCF:

• Such as maintaining routine records (e.g., purchase orders, invoices, payroll records, etc.) and by utilizing a locally defined subobject code or other local option code to track expenditures; or

• The LEA may indicate on all documentation (purchase orders, contracts, etc) that the transaction will be reimbursed out of the HCF.