Policy – Category 3000 (Business and Noninstructional Operations)
BP 3002 – Fiscal Allocation Plan
1.0 AB 602 Background: A Change in the Way We Fund Special Education
In 1997, in response to the statewide need for a less complex and more equitable funding model for special education, AB 602 legislation was passed in the State of California. The “base year” for the new funding model was 1997/98 .Essentially, the State moved from a unit-based funding model which relied upon the number of identified special education students, to a per ADA model, which created placement neutral funding for special education. Special Education Local Plan Areas (SELPAs) were no longer funded based on the number of special education students within their member districts, but rather funded in line with the K-12 population of their districts. In addition to the per ADA rate, this legislation initially provided funding for COLA, growth, equalization (enabling low- funded SELPAs to be leveled up to the statewide average), and “high need” students (special disabilities adjustment). For Desert Mountain Special Education Local Plan Area (DMSELPA), like any other multi-agency SELPA, this model represented a major change in doing business. Previously, special education funding was allocated directly to each district and county office based on the Instructional Personnel Service (IPS) units that agency was allocated and operated. Per AB 602, funding is now calculated for the SELPA as a whole, and it is the SELPA’s responsibility to allocate funding among its member agencies based upon an allocation procedure approved by the DMSELPA Board of Directors. The model developed at that time also included federal local assistance funds as part of the AB 602 funding formula. A statewide target rate (STR) for per ADA funding was established. For FY 2012/13 that amount was $465.4404354505. This combined with federal local assistance funds brought most SELPAs to a per ADA average of about $650. However, with federal local assistance funds disbursed one year in arrears, and with growth ADA being paid at the STR, an ever-widening gap was created for SELPAs that experience ADA growth each year. In 2013, the Governor’s budget addressed this anomaly by separating federal funding from the AB 602 formula. State special education funding continues to be based on ADA. However, federal local assistance funds are allocated outside of the AB 602 formula.
2.0
Meeting the Challenge
The DMSELPA Board of Directors chose to be proactive in meeting the challenge of AB 602. A SELPA Funding Allocation Plan was developed using the following guidelines.
• Provide an incentive for developing and implementing cost-effective programs for special education students in public school programs;
BP 3002 – Fiscal Allocation Plan
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Desert Mountain Special Education Local Plan Area (DMSELPA) (rev. 02/14)
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