124th MAINE LEGISLATURE
		LD 1741		LR 2550(01)
	Resolve, Regarding Legislative Review of Portions of Chapter 101:  Maine Unified Special Education Regulation, a Major Substantive Rule of the Department of Education
	Preliminary Fiscal Impact Statement for Original Bill
	Sponsor: Rep. Sutherland of Chapman
	Committee: Education and Cultural Affairs
	Fiscal Note Required: Yes
Preliminary Fiscal Impact Statement
			2009-10	2010-11	Projections 2011-12	Projections 2012-13
Net Cost (Savings)
	General Fund		($433,106)	($1,710,800)	($1,978,679)	($2,085,036)
Appropriations/Allocations
	General Fund		($433,106)	($1,710,800)	($1,978,679)	($2,085,036)
Fiscal Detail and Notes
	Amending certain provisions within Chapter 101: Maine Unified Special Education Regulation, a major substantive rule of the Department of Education, will result in savings to the General Fund from deappropriations to the Department of Education totaling $433,106 in fiscal year 2009-10 and $1,710,800 in fiscal year 2010-11.  The programs affected are described below.  This estimate is based on analysis of the fiscal impact of certain proposed changes within Chapter 101 where sufficient data was available to project savings and does not include estimated savings for those proposed rule changes within Chapter 101 where sufficient data was not available.
	The Child Development Services System (CDS) will require General Fund deappropriations of $39,337 in fiscal year 2009-10 and $785,422 in fiscal year 2010-11 for the savings associated with 1) repealing the provision that allows parents of eligible children currently receiving services within the CDS System to remain in the System and delay the entry into kindergarten for one year; and 2) changing the requirement that an evaluation of certain 3-5 year olds be conducted within 60 calendar days to 45 school days.
	The General Purpose Aid to Local Schools (GPA) program will require net General Fund deappropriations totaling $293,769 in fiscal year 2009-10 and $725,378 in fiscal year 2010-11 to recognize the savings to local school administrative units as a result of the rule changes.  Of these amounts, General fund deappropriations of $293,769 in fiscal year 2009-10 and $1,142,502 in fiscal year 2010-11 reflect the State's share of the savings achieved by reducing the reimbursement rate for contracted services to the MaineCare rate.  A General Fund appropriation of $417,124 in fiscal year 2010-11 to GPA reflects the costs associated with the repeal of the provision that allows parents of eligible children currently receiving services within the CDS System to remain in the System and delay the entry into kindergarten for one year.
	Finally, General Fund deappropriations of $100,000 in fiscal year 2009-10 and $200,000 in fiscal year 2010-11 will be required to the Special Services Team program within the Department of Education to reflect the savings achieved from eliminating the requirement for on-site reviews.
	The following summarizes the methodology used and assumptions made to estimate the savings for certain proposed rule changes within Chapter 101:
	1)  Reimburse rates for contracted services at MaineCare rates.
	- Utilized survey information of certain school administrative units of current rates for
	contracted occupational therapy, physical therapy and speech and language pathology.
	Survey was conducted by telephone by Department of Education.
	- Calculated average cost per therapy for all SAU's surveyed and compared that cost
	to MaineCare rate from MaineCare Benefits Manual (10-144 Ch. 101, Chapter III)
	Determined that changing to MaineCare rates would result in an estimated 33%
	reduction in rates, on average.
	- Based on information provided by Department of Education, assumed contracted services for OT, PT
	and Speech/Language Pathology comprised approximately 85% of total contracted services.
	- Adjusted FY 2007-08 costs by an inflationary factor to estimate costs for FY 2008-09 - FY 2012-13.
	- Applied 33% reduction to adjusted cost of contracted services to SAU's in FY 2007-08 to estimate savings.
	- Adjusted estimated savings to recognize the state's share and the local SAU's share of the annual savings
	- Appled State's share % as proposed in Governor's 2010-2011 Supplemental Budget request.
			2009-2010	2010-2011	2011-2012	2012-2013
	Approved contracted services (S&L)		$  8,561,669	$    9,118,177	$    9,710,859	$ 10,342,065
	% OT,PT, Speech		85%	85%	85%	85%
	Est. exp. For contracted OT, PT, Speech		$  7,277,419	$    7,750,451	$    8,254,230	$   8,790,755
	Estimated cost (savings) @ 33%		$ (2,401,548)	$  (2,557,649)	$   (2,723,896)	$ (2,900,949)
		State Share	$ (1,175,078)	$  (1,142,502)	$   (1,498,143)	$ (1,595,522)
		Local Share	$ (1,226,471)	$  (1,415,147)	$   (1,225,753)	$ (1,305,427)
	2)  Change evaluation requirement of 3-5 YO's from 60 calendar days to 45 school days.
	- Current FY 2009-10 salary budget for CDS sites has 28 Case Manager positions budgeted at
	40 hours per week for 52 weeks per year to fulfill current evaluation requirement
	- Assumed hours for these positions would be reduced to 40 hours per week for 44 weeks per year
	if evaluation requirement were to change to 45 school days - per information provided by the
	Department of Education.
	- resulted in salary savings of $39,337 in fiscal year 2009-10 (assuming 2 weeks of savings) and
	$162,383 in fiscal year 2010-11 (assuming 8 weeks of savings).
	3)  Repeal of free, appropriate public education choice for certain eligible children served by CDS
	- Based on information provided by the Department of Education, the cost to CDS in FY 2008-09 to serve
	the non-MaineCare eligible students who opted to stay within CDS for an additional year was $585,000.
	- Because the cost to serve MaineCare eligible children in FY 2008-09 was not available at the time
	this preliminary fiscal impact statement was prepared, no estimated savings to MaineCare was
	calculated.
	Total number of children who chose to stay with the CDS System for additional year in FY09 was 68.
	- Calculation of total state and local cost to K-12 public education to serve these 68 children is based on
	an average cost per-pupil (see below).  Costs to individual school administrative units may be higher or
	lower depending on the needs of the child and the school administrative unit where the child is served.
					Fiscal Year
					2008-09
	Cost of providing non-special education services:
	Base Allocation - Kindergarten through Grade 8				$ 768,539,380
	K-2 Targeted Funds				$   25,124,008
	K-8 Public School Enrollment (October 1, 2009)				$       128,557
	K-2 Public School Enrollment (October 1, 2009)				$         44,258
	Per-Pupil Cost - K to 8 basic allocation				$          5,978
	Per-Pupil Cost - K to 2 Targeted funds				$             568
	Estimated K-8 per pupil cost				$          6,546
	Number of students (from CDS)				68
	Total cost of providing non-special education services				$       445,119
	Cost of providing special education services:
	State & Local Spec. Ed. - EPS Allocation 2008-09				$ 226,524,130
	12/1/08 school-age ChildCount less State Wards & State Agency Clients				30,332
	State & Local Expenditure per special education student				$          7,468
	Less:  15% adjustment to reflect fixed costs				$   33,978,620
	State & Local Expenditure adjusted for fixed costs				$ 192,545,511
	Adjusted State & Local Expenditure per special education student				$          6,348
	Number of students (from CDS)				68
	Total cost of providing special education services				$       431,659
	Total cost to K-12 public education				$       876,779
	- Adjusted FY 2008-09 estimates by an inflationary factor to project impact for FY 2008-09 - FY 2012-13.
	- Appled State's share % as proposed in Governor's 2010-2011 Supplemental Budget request.
			2009-2010	2010-2011	2011-2012	2012-2013
	Total State & local cost to K-12 education		$             -	$      933,790	$       963,672	$     994,509
	State Share		$             -	$      417,124	$       530,019	$     546,980
	Local Share			$      516,666	$       433,653	$     447,529
	Savings to CDS System		$             -	$     (623,039)	$     (642,976)	$    (663,552)
	4)  Eliminating the requirement for on-site reviews
	- This preliminary fiscal impact statement accepts the Department of Education's estimated savings
	projection of $200,000 per year by eliminating the requirement on-site reviews.  The fiscal year
	2009-10 estimated is prorated to reflect this initiative not becoming effective until the last half
	of the fiscal year.