NC Education Code · NC Policy Manual
NC 1506-1.3 State-Level Activities
Plain English summary
This regulation governs how North Carolina and its LEAs may reserve and use state-level IDEA Part B funds, including caps on state administration reserves, allowable uses for other state-level activities, and an optional high cost fund to assist LEAs in educating high-need children with disabilities. The high cost fund has specific eligibility, planning, disbursement, and prohibition requirements, including a 90-day plan development deadline and a 30-day public notice requirement before the school year. Funds may not be used for legal fees, Medicaid-reimbursable costs, or to cap spending on any individual child's education.
Key requirements
- Each State may reserve for each fiscal year not more than the maximum amount the State was eligible to reserve for State administration under section 611 of the IDEA for fiscal year 2004 or $800,000 (adjusted in accordance with paragraph (a)(2) of this section), whichever is greater.
- Each outlying area may reserve for each fiscal year not more than five percent of the amount the outlying area received under § 300.701(a) for the fiscal year or $35,000, whichever is greater.
- Prior to expenditure of funds under paragraph (a) of this section, the State must certify to the Secretary that the arrangements to establish responsibility for services pursuant to section 612(a)(12)(A) of the IDEA are current.
- Some portion of the funds reserved under paragraph (b)(1) of this section must be used to carry out monitoring, enforcement, and complaint investigation; and to establish and implement the mediation process required by section 615(e) of the IDEA, including providing for the costs of mediators and support personnel.
- The State must not use any of the funds the State reserves pursuant to paragraph (c)(1)(i) of this section, which are solely for disbursement to LEAs, for costs associated with establishing, supporting, and otherwise administering the fund.
- The State must not use more than 5 percent of the funds the State reserves pursuant to paragraph (c)(1)(i) of this section for each fiscal year to support innovative and effective ways of cost sharing among consortia of LEAs.
- The SEA must develop, not later than 90 days after the State reserves funds under paragraph (c)(1)(i) of this section, annually review, and amend as necessary, the State plan for the high cost fund.
- The State must make its final State plan available to the public not less than 30 days before the beginning of the school year, including dissemination of such information on the State Web site.
- The costs associated with educating a high need child with a disability are only those costs associated with providing direct special education and related services to the child that are identified in that child's IEP, including the cost of room and board for a residential placement determined necessary, consistent with NC 1501-3.1, to implement a child's IEP.
- The disbursements under paragraph (c)(4) of this section must not be used to support legal fees, court costs, or other costs associated with a cause of action brought on behalf of a child with a disability to ensure FAPE for such child.
- Nothing in paragraph (c) of this section limits or conditions the right of a child with a disability who is assisted under Part B of the IDEA to receive FAPE pursuant to section 612(a)(1) of the IDEA in the least restrictive environment pursuant to section 612(a)(5) of the IDEA.
- Nothing in paragraph (c) of this section authorizes an SEA or LEA to establish a limit on what may be spent on the education of a child with a disability.
- Disbursements provided under paragraph (c) of this section must not be used to pay costs that otherwise would be reimbursed as medical assistance for a child with a disability under the State Medicaid program under Title XIX of the Social Security Act.
- Funds reserved under paragraph (c)(1)(i) of this section from the appropriation for any fiscal year, but not expended pursuant to paragraph (c)(4) of this section before the beginning of their last year of availability for obligation, must be allocated to LEAs in the same manner as other funds from the appropriation for that fiscal year are allocated to LEAs during their final year of availability.
- The State may use funds the State reserves under paragraphs (a) and (b) of this section without regard to the prohibition on commingling of funds in NC 1501-12.5(b) and the prohibition on supplanting other funds in NC 1501-12.5(c).
Affected parties
- State Education Agency (SEA)
- Local Education Agencies (LEAs)
- Charter schools that are LEAs
- Consortia of LEAs
- Children with disabilities
- High-need children with disabilities
- Outlying areas
- Special education and regular education teachers