SED Proposes Methodology Increases

SED Proposes Methodology Increases

The Board of Regents approved priority legislation of a statutory growth index for tuition reimbursement. NYSED recommended the following to the Division of Budget:

Both Preschool and School Age

  • The 2018-2019 tuition rate setting methodology for both preschool and school-age providers includes a 3.4% trend factor for all center-based programs (except for SCIS which SED recommended a 6% growth factor).
  • The Excessive Teacher Turnover Prevention Grant be increased by $8 million in total, to be shared among preschool center-based, 853 schools, and Special Act School District Programs.
  • A projected survey will be distributed regarding minimum wage to calculate additional funding to be added to the rates. The additional funding will reimburse salary and related fringe benefit increases attributed to new minimum wage requirements.
  • The use of “Interim Plus” rates be issued for 2018-2019, to be calculated as a carry-forward of a recent year’s certified rate with funding added for minimum wage, Excessive Teacher Turnover Prevention, and applicable approved 2018-2019 tuition reimbursement growth.

School Age Only (853 and Special Act School Districts)

  • Creation of a statutory growth index (wouldn’t need annual DOB approval)
  • The ability for schools to be able to establish a general reserve fund
  • The continuation of tuition rate calculation flexibility approved n 2014-2015
    • Enrollment adjustment factor to reduce the impact of swing in enrollment
    • Establishing rates at the greater of the prior year trended or the prospective rate
    • No reconciliation within a 1% corridor

Preschool Programs – SCIS

  • A 6% growth factor applied to tuition rates
  • Allow budget-based rates for initial SCIS programs to reflect Department developed preschool inclusion staffing standards
  • Flexibility in year to year calculation of maximum funding levels for SCIS programs
  • Limit the offsetting revenue to the amount of actual revenue received by a SCIS program

Preschool Programs – Special Class

  • Flexibility in how approved tuition growth is calculated

Preschool Programs – SEIT

  • No changes in the methodology. For the 2018/19 year, the phase in will be complete and all programs will receive the regional average rate. Remember, any unused SEIT funds must be carried forward and spent in future years on the provision of SEIT services

**Please note that these methodology changes are just proposals awaiting DOB approval. We will keep you abreast of final regulations as they become available. To read the actual methodology letters, please click below:

James Laino, CPA

James Laino, CPA

Senior Accountant

James is a member of Cerini & Associates’ senior audit staff where he works with our education and school district clients. James conducts claims audits at various school districts on Long Island.

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