NC Education Code · NC Policy Manual

NC 1502-3 Use of Amounts

Plain English summary

This regulation governs how LEAs must use Part B IDEA funds, requiring that such funds only pay for excess costs of special education and related services, and that they supplement rather than supplant existing State, local, and other Federal funds. LEAs must demonstrate they have spent a minimum average amount on children with disabilities before drawing on Part B funds, calculated per the excess costs definition in NC 1500-2.16, excluding capital outlay and debt service. Special provisions apply for ages 3-5 and 18-21 where no funds exist for nondisabled peers, and for jointly established LEA eligibility.

Key requirements

  • Amounts provided to the LEA under Part B of the IDEA must be expended in accordance with the applicable provisions of this part
  • Must be used only to pay the excess costs of providing special education and related services to children with disabilities
  • 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 IDEA to pay for all of the costs directly attributable to the education of a child with a disability
  • 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 IDEA are used
  • That amount may not include capital outlay or debt service
  • If two or more LEAs jointly establish eligibility in accordance with NC 1502-18 the minimum average amount is the average of the combined minimum average amounts determined in accordance with the definition of excess costs in those agencies for elementary or secondary school students

Affected parties

  • Local Education Agencies (LEAs)
  • Children with disabilities
  • Special education administrators
  • LEA financial officers
  • Jointly established LEA consortia

Official source

https://www.dpi.nc.gov/documents/publications/catalog/ec144-policies-governing-services/open#page=51