New York Laws
Article 89 - Children With Handicapping Conditions
4405 - Computing Financial Responsibility for Special Educational Services for Certain Children With Handicapping Conditions.

(ii) During the close-down period and until all necessary financial
obligations of the school district have been met pursuant to this
paragraph, the commissioner shall require the board of education of the
school district to periodically submit, as required by the commissioner,
financial reports and financial statements, detailing any tuition,
and/or close-down costs and any revenues generated. In applying the
reimbursement methodology to any remaining tuition costs and any other
reasonable and appropriate expenses needed to close-down the special act
school district, the commissioner shall reject any close-down costs that
are unnecessary or unreasonable to close-down the school, whether or not
the board of education submits a close-down plan.
k. (i) The tuition methodology established pursuant to this
subdivision for the two thousand twenty-one--two thousand twenty-two
school year shall authorize approved private residential or
non-residential schools for the education of students with disabilities
that are located within the state, and special act school districts to
retain funds in excess of their allowable and reimbursable costs

incurred for services and programs provided to school-age students. The
amount of funds that may be annually retained shall not exceed one
percent of the school's or school district's total allowable and
reimbursable costs for services and programs provided to school-age
students for the school year from which the funds are to be retained;
provided that the total accumulated balance that may be retained shall
not exceed four percent of such total costs for such school year; and
provided further that such funds shall not be recoverable on
reconciliation of tuition rates, and shall be separate from and in
addition to any other authorization to retain surplus funds on
reconciliation.
(ii) The tuition methodology established pursuant to this subdivision
for the two thousand twenty-two--two thousand twenty-three school year
and annually thereafter shall authorize approved providers to retain
funds in excess of their allowable and reimbursable costs incurred for
services and programs provided to school-age and preschool students. The
amount of funds that may be annually retained shall not exceed the
allowable surplus percentage of the approved provider's total allowable
and reimbursable costs for services and programs provided to school-age
and preschool students for the school year from which the funds are to
be retained, as defined in subparagraph (iii) of this paragraph;
provided that such funds shall not be recoverable on reconciliation of
tuition rates. For purposes of this subparagraph, "approved providers"
shall mean private residential or non-residential schools for the
education of students with disabilities that are located within the
state, special act school districts, and programs approved pursuant to
section forty-four hundred ten of this article that are subject to
tuition rate reconciliation.
(iii) The approved surplus percentage shall be as follows: eleven
percent for the two thousand twenty-two--two thousand twenty-three
through two thousand twenty-four--two thousand twenty-five school years,
eight percent for the two thousand twenty-five--two thousand twenty-six
school year, five percent for the two thousand twenty-six--two thousand
twenty-seven school year, and two percent for the two thousand
twenty-seven--two thousand twenty-eight school year and annually
thereafter.
(iv) Funds authorized to be retained under this paragraph may be
expended only pursuant to an authorization of the governing board of the
school, school district or program approved pursuant to section
forty-four hundred ten of this article, for a purpose expressly
authorized as part of the approved tuition methodology for the year in
which the funds are to be expended, provided that funds may be expended
to pay prior year outstanding debts. Any school, school district, or
program approved pursuant to section forty-four hundred ten of this
article that retains funds pursuant to this paragraph shall be required
to annually report a statement of the total balance of any such retained
funds, the amount, if any, retained in the prior school year, the
amount, if any, dispersed in the prior school year, and any additional
information requested by the department as part of the financial reports
that are required to be annually submitted to the department.
5. The commissioner shall annually determine the tuition rate and the
commissioner of social services shall annually determine the maintenance
rate for special services or programs provided during the months of July
and August for children with handicapping conditions entitled to attend
public schools without the payment of tuition pursuant to section
thirty-two hundred two of this chapter. The commissioner of education
shall annually determine the tuition rate, maintenance rate and the
medical services rate, if applicable, for such children attending the

New York state school for the blind or the New York state school for the
deaf during the months of July and August. Such rates shall be
determined in conformance with the reimbursement methodologies
established pursuant to subdivision four of this section and shall be
subject to the approval of the division of the budget. Rates shall be
determined for all special services or programs as defined in section
forty-four hundred one of this chapter and offered during July and
August.
6. Tuition and maintenance rates established pursuant to this section,
once certified by the director of the budget, shall be used in all
contracts for the provision of programs and services for which such
rates were established, provided, however, that the commissioner shall
prorate the amount to be paid for an individual pupil enrolled for a
period of time which is less than the full period of time approved for
such program or services.