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USE OF FUNDS FOR CONTRACT SERVICES INCLUDING RESIDENTIAL PLACEMENTS  
 
Authorities:  34 C.F.R. Part 300; Texas Education Code; 19 T.A.C. Chapter 89
 
 
 
FEDERAL AND STATE REQUIREMENTS CITATIONS

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The local educational agency (LEA) must comply with the GENERAL AND FISCAL GUIDELINES framework.


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If placement in a public or private residential program is necessary to provide special education and related services to a child with a disability, the program, including non-medical care and room and board, must be at no cost to the parent of the child. 89.61(a)
300.104


COSTS FOR RESIDENTIAL PLACEMENT



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Costs of an approved educationally-based contract for residential placement may be paid from a combination of federal, state, and local funds: TEC 29.008(b)
TEC 29.008(c)
TEC 42.151(g)
300.103(a)


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  • The local share of the total contract cost for each child is that portion of the local tax effort that exceeds the LEA's local fund assignment, divided by the average daily attendance (ADA) in the LEA:
TEC 29.008(b)


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    • For purposes of this framework, local tax effort means the total amount of money generated by taxes imposed for debt service and maintenance and operation less any amounts paid into a tax increment fund under Chapter 311, Tax Code;
TEC 29.008(b)


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  • The education cost of residential contracts must be funded with state funds on the same basis as nonpublic day school contract costs:
89.61(b)(2)(A)
TEC 42.151(a)


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    • If the contract involves a private facility, the state share of the total contract cost is that amount remaining after subtracting the local share; and
TEC 29.008(b)


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    • If the contract involves a public facility, the state share is that amount remaining after subtracting the local share from the portion of the contract that involves the costs of instructional and related services;
TEC 29.008(b)


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  • State special education funds may be used for transportation only to and from residential placements:
89.1125(f)


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    • Prior to using federal funds for transportation costs to and from a residential facility, the LEA must use state or local funds based on actual expenses up to the state transportation maximum for private transportation contracts; and
89.1125(f)


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  • After expending any other available funds, the LEA must expend its local tax share per ADA and 25% of its Individuals with Disabilities Education Act Part B (IDEA-B) formula tentative entitlement, or an equivalent amount of state and/or local funds, for related services and residential costs:
89.61(b)(2)(B)


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    • If this is not sufficient to cover all costs of the residential placement, the LEA through the residential application process may receive additional IDEA-B discretionary funds to pay the balance of the residential contract placement costs; and
89.61(b)(2)(B)


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    • Funds generated by the formula for residential costs must not exceed the daily rate recommended by the Texas Department of Family and Protective Services (DFPS) for the specific level of care in which a child is placed.
89.61(b)(2)(C)


FUNDING MECHANISM FOR RESIDENTIAL PLACEMENT



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The LEA may contract for a residential placement of the child only with either public or private residential facilities which maintain current and valid licensure by the Texas Department of Aging and Disability Services, the DFPS, or the Department of State Health Services for the particular disabling condition and age of the child. 89.61(a)(1)


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The LEA which intends to contract for residential placement of the child for educational purposes with a residential facility to meet some or all of the child's special education needs must notify the Texas Education Agency (TEA) of its intent to contract for the residential placement through the residential application process. 89.61(a)(2)
89.61(a)(3)


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Requests for approval of state and federal funding for residentially-placed children must be negotiated on an individual child basis through a residential application submitted by the LEA to the TEA. 89.61(b)


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When the child who is residentially placed by the LEA changes residence to another LEA in Texas, and the child continues in the contracted placement, the LEA which negotiated the contract must be responsible for the residential contract for the remainder of the school year. 89.61(a)(4)(H)


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Residential facilities which provide educational services must have their educational programs approved for contracting purposes by the commissioner of education. 89.61(c)


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For out-of-state residential facilities, the facility must be approved by the appropriate agency in the state in which the facility is located, and the LEA must follow the TEA application process. 89.61(c)(3)


NON-PUBLIC DAY SCHOOLS



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LEAs that contract for services from non-public day schools must comply with procedures developed by the TEA for monitoring the provision of special education and related services at no cost to the parent in conformance with the individualized education program. 300.146
300.147
89.1050(h)

 
 
Last Updated: Friday, January 26, 2018