Open Enrollment & Financial Implications

Jennifer Danfield and Erin FathDepartment of Public InstructionWASBO Accounting Conference

March 19, 2014

Program Overview

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Allows parents to apply for their children to attend school in a school district other than the one in which they reside. ◦ Nonresident District – district they want their child

to attend◦ Resident District – district that they live in

Inter-District Public School Open Enrollment

Any pupil in 5-year-old kindergarten to grade 12.

Prekindergarten, early childhood education, and 4-year-old kindergarten: ◦ Only if child’s resident district offers the same

type of program, and◦ Only if child is eligible for the program in the

resident school district.

Who Can Open Enroll?

Two Ways to Apply for Open Enrollment

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Regular Application Period

Alternative Application Procedure

“Regular” application:◦ Submitted in the February – April application

period, ◦ For the following school year.

“Alternative” application:◦ Submitted from July 1 until the end of the school

term, ◦ For the current school year.

Regular Application vs. Alternative Application

The alternative procedure is a means by which parents can apply for open enrollment outside the regular application period.

It is not an exception to the nonresident district’s space criteria, which would result in arbitrarily approving applications for some pupils and denying them for others.

Regular Application vs. Alternative Application

The regular application period is from the 1st Monday in February until the last weekday in April.

◦ February 3 – April 30, 2014 for the 2014-15 school year.

Regular Application Period

At the January board meeting, each board must determine the number of regular education and special education open enrollment spaces within the district.

If the board does not intend to deny pupils due to space, it may make that determination.

Designation of Spaces

For special education, the board must establish criteria and determine the number of spaces for each program or service that has a class size or caseload limit. ◦ However, the board must still meet the IEP in its

entirety.

Designation of Spaces

The resident school district must send special education records and expulsion records to the nonresident district by the 1st Friday following the 1st Monday in May (May 9, 2014).

The nonresident district must send an estimate of special education costs by the 3rd Friday following the 1st Monday in May (May 23, 2014).◦ Only if the district has received an IEP.

Records and Estimates

If the nonresident district does not send a cost estimate by the deadline, it may not charge additional costs.

Records and Estimates

Applications can only be denied for reasons specified in statute and board policy.

Nonresident districts must notify parents of approval or denial on or before the 1st Friday following the 1st Monday in June (June 6, 2014). ◦ Approvals must include notice of school

assignment.

Nonresident Approval or Denial Regular Application Period

Resident district is only required to send notice of denial on or before the 2nd Friday following the 1st Monday in June (June 13, 2014).

If resident district does not send notification, it is assumed that the application is approved.

Resident Approval or Denial Regular Application Period

Parents may appeal either nonresident or resident district denials to DPI within 30 days after the notice of denial was mailed.

The Department must affirm the school board’s decision unless the Department finds that the decision was arbitrary or unreasonable.

Appeal of Regular Application Denial

Allows parents to apply for open enrollment at any time if one of seven criteria are met:◦ Pupil is victim of a violent crime◦ Pupil is or has been homeless. ◦ Pupil has moved into the state (within last 30 days).◦ Pupil’s residence has changed as a result of military

orders.◦ Pupil has been repeatedly bullied or harassed.◦ Pupil’s residence has changes as a result of a court

order or custody agreement. ◦ Pupil, nonresident, and resident district agree the

transfer is in the best interests of the pupil.

Alternative Application Procedure

Parent submits application to nonresident district: ◦ Must indicate one or more criteria. ◦ Must provide explanation and, if appropriate,

supporting documents.

Alternative Application Procedure

Nonresident district requests special education and expulsion records from resident district:◦ Prepares special education cost estimate.

Alternative Application Procedure

Nonresident district must approve or deny the application within 20 days. ◦ If approved, pupil may attend immediately and

must attend within 15 days (nonresident district may extend).

May deny for same reasons it may deny during the regular application period: ◦ Regular & special education space/program/referral,

expulsion, habitual truancy

Nonresident Approval or Denial Alternative Application

If application is based on “best interests of the pupil”, may deny if application is not in the pupil’s best interests.

No specific right to appeal.

Nonresident Approval or Denial Alternative Application

Initial Assumption◦ Parent is best judge of the pupil’s best interests.

A nonresident or resident school district may only deny if the district has sufficient reason to overcome the parent’s judgment.

A resident school district must have sufficient reason and evidence to sustain a denial alleging that a transfer is not in the pupil’s best interests.

“Best Interests” of the Pupil

May only deny for:

◦ Undue financial burden

◦ Criteria do not apply, i.e. did not move into state within last 30 days, no custody change, etc…

◦ Transfer is not in the pupil’s best interests

Resident Approval or Denial Alternative Application

Parent may appeal within 30 days.

If denied due to “undue financial burden”, ◦ DPI must affirm unless it finds the decision was

arbitrary or unreasonable.

Resident District Denial Alternative Application

If denied due to “transfer not in pupil’s best interest”, ◦ Parent must explain why transfer is in pupil’s best

interests. ◦ District must explain why transfer is not in pupil’s

best interests. ◦ If DPI determines the district’s denial is not in the

pupil’s best interests, must allow the transfer.

Resident District Denial Alternative Application

Open Enrollment Funding

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Question:How do we count Open Enrolled Pupils?

Answer:Follow the money ...Who is paying for the pupil?

Pupil Count for Open Enrolled Pupils

The resident district counts the open enrolled pupils (OE-out) for Revenue Limit and General Aid purposes, because the resident district pays for the OE pupils.

Pupil Count for Open Enrolled Pupils

Within the PI-1563 Pupil Count Report: Resident district must add its OE-out pupils to

the headcount under Step 4, “Resident Additions” (because OE-out pupils are not capture in Step 1, the initial pupil headcount).

Nonresident district includes OE-in pupils in Step 1 (initial head count) and then must remove them from the headcount under Step 2, “Non-Resident Reductions”.

Pupil Count for Open Enrolled Pupils

For regular education pupils: ◦ DPI transfers state-set amount from the resident

district to the nonresident district in the final state aid payment (3rd Monday in June, e.g., June 16th for 2013-14 year).

◦ The payment is prorated for less than a full school year.

For special education pupils: ◦ Nonresident district charges resident district basic

amount plus any actual, additional costs to provide special education. No average or prorated costs.

Payment for Open Enrolled Pupils

Used to be the prior year statewide average cost/member for: ◦ Regular education◦ Co-curricular activities◦ Instructional support services◦ Pupil services

Amount of State Aid Adjustment

2013 Act 20 changed the method for calculating the open enrollment transfer amount.

For the 2013-14 and 2014-15 school years, the open enrollment transfer amount is $150 more than the prior year and is as follows: ◦ 2012-13: $6,335 (daily rate: $35.19)◦ 2013-14: $6,485 (daily rate: $36.03)◦ 2014-15: $6,635 (daily rate: $36.86)

Amount of State Aid Adjustment

For each regular education student:◦ Transfers In - DPI increases district’s final state aid

payment◦ Transfers Out - DPI decreases district’s final state

aid payment

Open Enrollment Funding

OE payments are outside the revenue limit Net OE gain:

◦ Revenue received is outside the limit …◦ Additional spending capacity

Net OE loss:◦ District cannot directly levy for that loss of revenue

[the payment to other district(s)] BUT …◦ Those OE-out pupils were part of the district’s

revenue limit membership, upon which the district’s revenue limit (spending authority) was based

Open Enrollment Funding

Funding for Alternative Applications

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Payments for regular education pupils: ◦ Are equal to the open enrollment transfer amount◦ Prorated at the daily rate (OE amt/180)◦ Are paid as an aid adjustment in the same way as

current open enrollment is paid

Regular Education Payments Alternative Application

Payments for special education pupils are paid the same way as current open enrollment. ◦ The nonresident district bills the resident district

for the prorated OE amount plus any actual, additional special education costs.

Special Education Payments Alternative Applications

Alternative application pupils may transfer in the middle of the school year.

Therefore, the pupil may or may not have been counted by the resident district in the membership on the 3rd Friday in September.

Resident Membership Count Alternative Application

The following pupils may not have been counted in membership: ◦ Pupils who moved from out of state. ◦ Pupils who moved as a result of military orders. ◦ Pupils who have been homeless. ◦ Pupils who were enrolled in private schools or

home-based private education programs. ◦ Pupils who were residents of other school districts.

Resident Membership Count Alternative Application

Under Act 114, a resident district that was unable to count the pupil in membership may receive a revenue limit exemption in the amount of the aid transfer.

This revenue limit exemption may be taken in the following school year:◦ It is a non-recurring exemption – the district

receives it for just that year, then it comes out of the district’s revenue base for the following year.

Resident Membership Count Alternative Application

The amount of the revenue limit exemption, if any, will be calculated by the Department’s open enrollment staff and provided to the school finance team.

Resident Membership Count Alternative Application

In our open enrollment database (OPAL), under the Exceptions tab, there is a tab called “Counted by Resident District”.

If the pupil was not counted by the resident district on 3rd Friday, it must be indicated on this tab. ◦ Default is “counted by resident district”.

Revenue Limit Exemption Alternative Application

Once this is done, the amount of the revenue limit exemption, if any, will appear in OPAL in the last column on the Exceptions tab or may be viewed on the pupil’s aid calculation page. ◦ If the pupil is listed as SPED, the amount of the

exemption will be $0. DPI will calculate this manually and notify the district of the amount.

Revenue Limit Exemption Alternative Application

Financial Implications

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Unlike general state aid:◦ Nonresident districts are not required to reduce the

property tax levy by the amount of the OE payment. Can spend it

◦ Resident districts are not permitted to increase the property tax levy by the amount of the OE payment. Must reduce other spending

The OE payment is more comparable to the revenue limit than to state aid:◦ It represents $ that is or is not available to spend.

OE Payments Are Outside the Revenue Limit

The OE payment calculation excludes many cost categories such as:◦ School administration and operations, maintenance,

debt service, and transportation.

Thus, the OE payment is less than the total average cost per student. ◦ A district that gains students does not receive its

full cost per student. ◦ A district that loses students does not lose its full

cost per student.

OE Payments Are Like Marginal Cost

Simulates Marginal Cost

Nonresident District Resident District

Does not lose full amount of revenue per member.

Is able to retain a portion to offset fixed costs in the district.

Does not receive full amount of revenue per member.

Is only required to accept pupils for whom there is space.

Revenue/Member $10,000

OE Amount Recd. $ 6,485

Difference $ 3,515

Available to Spend

$ 6,485

Revenue/Member $10,000

OE Amount Paid $ 6,485

Retained $ 3,515

Available to Spend

$ 3,515

Assistance

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Website: http://oe.dpi.wi.gov

Open Enrollment List Serv: ◦ Receive information and announcements◦ Printed information is rarely used. ◦ To sign up, send email to

openenrollment@dpi.wi.gov.

Open Enrollment Resources

Email: openenrollment@dpi.wi.gov

Phone: (toll free) 888-245-2732, option 2

Open Enrollment Website: http://oe.dpi.wi.gov

General Contact Information

Mary Jo CleaverOpen Enrollment Consultant◦ 608-267-9101 ◦ maryjo.cleaver@dpi.wi.gov

Jennifer Danfield Open Enrollment Consultant◦ 608-264-6707◦ jennifer.danfield@dpi.wi.gov

Kari Gensler Santistevan Open Enrollment Education Specialist◦ 608-267-9196◦ kari.genslersantistevan@dpi.wi.gov

DPI Open Enrollment Staff