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Amounts provided to the local educational agency (LEA) under Part B of the Individuals with Disabilities Education Act (IDEA) must be used only to pay the excess costs of providing special education and related services to children with disabilities and must be used to supplement State, local, and other Federal funds and not to supplant those funds.
The excess cost requirement prevents an LEA from using funds provided under Part B of the Act (IDEA-B) to pay for all of the costs directly attributable to the education of a child with a disability.
However, the excess cost requirement does not prevent an LEA from using IDEA-B funds to pay for all of the costs directly attributable to the education of a child with a disability in any of the ages 3, 4, 5, 18, 19, 20, or 21, if no local or State funds are available for nondisabled children of these ages. However, the LEA must comply with the nonsupplanting and other requirements of this part in providing the education and services for these children.
[34 CFR §300.202]
Definition of Excess Costs
Excess costs means those costs that are in excess of the average annual per-student expenditure in an LEA during the preceding school year for an elementary school or secondary school student, as may be appropriate, and that must be computed after deducting –
(a) Amounts received –
- Under Part B of the Act;
- Under Part A of Title I of the ESEA; and
- Under Parts A and B of Title III of the ESEA and;
(b) Any State or local funds expended for programs that would qualify for assistance under any of the parts described in paragraph (a) of this section, but excluding any amounts for capital outlay or debt service.
[34 CFR §300.16]
According to 34 CFR §300.202 (b)(2)(i), an LEA meets the excess cost requirement if it has spent at least a minimum average amount for the education of its children with disabilities before funds under Part B of the Act are used.
For practical purposes, the LEA may expend IDEA-B funds simultaneously with State, local and other Federal funds, provided that the minimum average amount per student is expended by the end of the school year with funds other than IDEA-B funds.
Computation of Excess Costs
An Excess Cost Calculator tool has been developed by TEA for use by the LEA. The calculation must be completed annually by the LEA based on previous year expenditures as soon as possible after submission of the final expenditure report. The calculation and supporting documentation must be maintained by the LEA and made available to auditors.
When calculating excess cost for 2010-2011 based on 2009-2010 expenditures or calculating excess cost for 2011-2012 based on 2010-2011 expenditures, do not include American Recovery and Reinvestment Act (ARRA) expenditures in the calculation.
Section 602(8) of the Act and 34 CFR §300.16 require the LEA to compute the minimum average amount separately for children with disabilities in its elementary schools and for children with disabilities in its secondary schools. LEAs may not compute the minimum average amount it must spend on the education of children with disabilities based on a combination of the enrollments in its elementary schools and secondary schools.
Designation of grade levels as “elementary” or “secondary” should follow district practice.
The following example shows how to compute the minimum average amount an LEA must spend for the education of each of its elementary school children with disabilities with fund sources other than IDEA-B.
Determine the total amount of expenditures for elementary school students from all sources – local, State and Federal (including IDEA-B) – in the preceding school year. Exclude capital outlay and debt services.
|State and local tax funds ||$6,500,000|
|Federal funds || $600,000|
| || |
Less capital outlay and debt service relating
to the education of elementary school students
|Total Adjusted Expenditures||$7,040,000|
Subtract from the Total Adjusted Expenditures amounts spent for:
- (a) IDEA–B
- (b) ESEA, Title I, Part A
- (c) ESEA, Title III, Parts A and B State and local funds for children with disabilities, and
- (d) State or local funds for programs under ESEA, Title I, Part A, and Title III, Parts A and B.
These are funds that the LEA actually spent, not funds received last year but carried over for the current school year.
|(a) IDEA-B|| $200,000|
|(b) ESEA, Title I, Part A|| 250,000|
|(c) ESEA, Title III, Parts A & B|| 50,000|
|(d) State and local funds for chidren with disabilities|| 500,000|
|(e) State and local funds for programs under ESEA, |
Title I, Part A, and Title III, Parts A & B
|Total Adjusted Expenditures||$7,040,000|
|Less Total Deductions||-1,150,000|
Determine the average annual per student expenditure for elementary school students by dividing the average number of students enrolled in the elementary schools of the LEA during the preceding year (including children with disabilities) into the total amount computed in Step 2.
|Total Amount from Step 2|| $5,890,000|
|Average number of students enrolled in preceding year (October PEIMS snapshot)|| ÷800|
|Average annual per student expenditure|| $7,362|
The amount obtained through this computation is the minimum amount the LEA must spend (on the average) for the education of each of its elementary school children with disabilities with fund sources other than IDEA-B.
Determine the total minimum amount of funds the LEA must spend for the education of its elementary school children with disabilities in the LEA (not including capital outlay and debt service) with fund sources other than IDEA-B by multiplying the number of elementary school children with disabilities in the LEA times the average annual per student expenditure obtained in Step 3.
|Number of students with disabilities in the LEA's elementary schools|
in the current year (October PEIMS snapshot)
|Average annual per student expenditure (obtained from Step 3)||x $7,362|
Total minimum amount of funds the LEA must spend for the education
of children with disabilities enrolled in the LEA's elementary schools
with fund sources other than IDEA-B
Funds under IDEA-B can only be used for excess costs over and above this minimum.
Division of Federal Fiscal Compliance and Reporting
1701 N. Congress Avenue
Austin, Texas 78701