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Special Education Listserv

Subject: Proportionate Share Monies/How To Release Proportionate Share Carry-Over Funds for District Use

Source: Funds Management

Intended Audience: Special Education Directors, Superintendents, Financial Administrators

Date: February 5, 2010

In October, the Division of Special Education notified school districts through SELS of a new change regarding Proportionate Share Carry-Over funds. As you know, proportionate share funds are the amount of IDEA Part B funds a district must spend on parentally-placed private school children with disabilities ages five (5) to twenty-one (21) who have been evaluated and determined eligible for special education and related services within the district boundaries. If the district does not spend its proportionate share funds in the current year, it has an additional one-year carry-over period under IDEA to spend these funds.

With the influx of ARRA dollars, districts may have difficulty spending their entire proportionate share obligation. But based on new guidance from the Federal Office of Special Education Program (OSEP), any carry-over funds not obligated and/or expended by mid-year, for appropriate reasons, may be released to be spent within the district on students with disabilities.

Allowable reasons for not expending the full amount of proportionate share carry-over funds include: parents/private school refused services, student aged out, student moved from district, more obligation than expenditures, etc.

While this is a pretty simple process, it gets confusing because of the Division's First-In, First-Out Policy for expending funds; meaning older funds are expended first. So districts will need to expend carry-over funds on current year proportionate share expenditures before dipping into their current year obligation. So if the current year proportionate share expenditures are more than the carry-over amount, there will be no need to request to release the carry-over funds. This is better explained in a step-by-step process as outlined below.

1. Determine Current Year (2009-10) Proportionate Share Expenditure Amount (estimated) 2. Look up the Carry-Over Amount from 2008-09 Part B Final Expenditure Report (FER) 3. Subtract the Estimated Current Year Proportionate Share Expenditure Amount from the Carry-Over Amount 4. If there is a negative balance, a form does not need to be completed and the district will expend all carry-over funds from prior year. If there is a positive balance, a form should be completed to release the amount of the balance.

The district's current year obligation, if unexpended, will become carry-over into 2010-11, at which time can be requested to be released.

This change will begin in FY10, starting with carry-over funds from 2008-09. To see if your district had carry-over funds, access the 2008-09 Part B Final Expenditure Report (FER) in ePeGS, go to the Supporting Data Page, and view the "Proportionate Share Carry-Over to Next Fiscal Year" amount, or view the list posted on the Funds Management webpage at:  If your district is unable to expend these carry-over funds on parentally-placed private school students with disabilities, simply complete the Request to Release Proportionate Share Carry-Over Funds Form, and email to  The form is located on the Funds Management webpage at:

The Division recommends submitting the form by February 15 in order to allow ample time for approval and for the district to be able to spend the funds once they are released.  However, this date is not set in stone and districts may still submit the form after this date if they want their funds released. Once the form is approved, the Division will update the current year (2009-10) FER to indicate the amount of carry-over funds that were released. Released Proportionate Share Carry-Over funds must be expended by June 30, 2010.