Explanation and Instruction for Calculating Tuition

Determining tuition is a straightforward calculation based on data taken almost entirely from readily available financial and membership records. The purpose of tuition is to recover an amount representing revenues lost because the student receiving services is not a resident. Tuition may be charged only for services delivered and for the times the student was enrolled.

There are two types of data required to complete the tuition calculation. Sources of the required financial and membership data are primarily the district’s Annual Financial Report (PI 1505) and the Special Education Financial Report (PI 1505-SE). Additional data sources include the district’s Summer School Report (PI 1804) for summer school ADM and district membership records in special education programs.

Examples of financial data required and their sources are as follows:

Total General Fund Expenditures 10E 000 000 000 Annual Report

Payment for Services Local, Source 10R 000 000 240 Annual Report

Cost of Special Ed Program exp. 27E 152 000 000 011 & 019 Special Ed Financial Report

Examples of membership data required and their sources are as follows:

Total Resident ADM PCW 420 036 001 Annual Report

Total Non-resident ADM PCW 420 036 002 Annual Report

Resident Summer School ADM PCW 410 010 001 Third Friday Membership Report

Non-resident Summer School ADM PCW 410 010 002 Third Friday Membership Report

Pages one through three will lead you through the tuition calculation. It takes into account whether the student is "regular or special education." In the calculation you will deduct costs for general services not delivered such as general fund transportation if it was not provided and equalization aid if the student was counted for membership and state tuition aid. At the end of page three you will have calculated the total tuition for any given student. This number will also serve as the per student amount of any sized group of identically served students.

Pages 4-state and 4-standard further summarize costs found in the previous three pages. Page five serves as the "invoice" for billing purposes.

Types of Data Determined in Pages One Through Three:

1. General cost (general fund plus debt service) per student per day.
2. General Fund instruction plus transfer to special education. This is the instructional portion of fund 10.
3. General fixed cost. Fixed costs are costs that support instruction in the general and debt service funds and are to be charged to all students equally without regard as to whether the student is regular or special education. Examples of fixed costs are electricity, heat, central supervision and maintenance. The form determines the general fund fixed cost by subtracting the cost of instruction in the general fund and the amount transferred to Fund 27 from the total cost of the general fund.
4. Special education program cost. This is taken directly from the special education financial report, projects 011 and 019.
5. Special education (Fund 27) fixed cost. This is determined by totaling the cost of specific Fund 27 expenditures such as social work and supervision.
6. Supplemental Costs to the special education program. These are costs incurred in the delivery of special education instruction that come from functions other than the special education program function in #4 (above). The key to determining what is a supplemental cost is whether the service it provides is shared equally by all of the students in the specific special education program. An example of this is the cost of aides assigned to the program rather than to individual students. The cost of aides will be found among the total in 27E 159 100 000 011 and 019. Costs such as speech/language, OT, and PT are not considered supplemental unless they are provided equally to all students in the particular special education function.
7. Special allocable costs. These are costs that can be attributed to an individual student such as individual OT or PT services. Speech/language or special transportation are also examples of costs typically billed as allocable. Intuitively it should be obvious that allocable cost is not restricted to individual students, more than one student may share an aide. In this instance the cost of the aide would then be prorated over the various students served.

Of course not all students will incur all of the above types of costs. Regular (non-special education) students would incur costs for (1) general fund instruction; (2) the transfer to Fund 27 as well as (3) general fixed costs. The total billing may or may not include (4) transportation. It is also possible that this student could have (5) special allocable costs. No costs from Fund 27 would be attributed to this student under typical situations.

Special education student tuition is based on (1) general education fixed costs, (2) Fund 27 program and (3) fixed costs, as well as, possibly, (4) supplemental and (5) allocable costs.

Organization of Worksheets:

Pages one through three provide the basic calculation of tuition.

Page four-state, PI 1524F is the tuition claim form to be used only when claiming state tuition. It summarizes data from pages one through three and prepares the data for billing.

Page four-standard, PI 1524 FF is the alternative to page four-state and is used only when tuition is to be billed to any person or agency other than the state. Page four-standard also summarizes data from pages one through three and prepares the data for billing.

Page five is the standard tuition claim that will be presented to all persons or agencies responsible for payment. Page five acts in a manner similar to an invoice. Page five is a total of general tuition, special tuition, and special allocable costs. It also lists any deduction for transportation and general aids if appropriate.

The Tuition Calculation Procedure in Greater Detail:

Page 1, lines 1 through 30 serve to determine the net cost of the general and debt service funds to be used in the tuition calculation. Data called for in lines 1 through 30 are to be found in the district’s Annual Report. Line 30, which represents the net cost of Fund 10 and Fund 30, is similar but not necessarily identical to the shared cost used in the calculation of equalization aid.

Lines 31 through 37 determine the total ADM of the district residents and non-residents. The major component of this calculation is found in the district’s Annual Report. The summer school piece of this calculation is found in the district’s summer school report. Summer school numbers on the summer school membership report are in full time equivalents and must be multiplied by 180 to convert them to ADM.

Final tuition is expressed as an amount per student, per day. The cost/student/day is determined by dividing the net cost on line 30 by the total number of days students were enrolled (Aggregate Days Membership — ADM), line 37. The total ADM includes both resident and non-resident students.

Lines 38 through 41 are used to arrive at the cost of general transportation already included in the net cost in line 30 per student/day. This is important because a district can only charge tuition for services provided. If general transportation is not provided it must be subtracted out at the appropriate time in the calculation.

Line 42 is the amount of regular (non-special education) tuition per student per day.

Note: If this tuition calculation is for a regular education student lines 48 through 68 dealing with special education may be ignored.

Line 43 calculates the amount of general aid (including equalization and supplemental aid) paid by the state to the district on a per student/day basis. In instances where a particular student has been counted for membership this amount per day will be deducted from the amount billed. Claiming a tuition student for membership only occurs in certain instances in which state tuition is being claimed. It you’re not doing a state tuition claim the student should not be counted and you may ignore line 43.

Lines 44 through 46 determine the cost of general instruction and the Fund 27 transfer from general fund. If the tuition being calculated is for a special education student this amount will be deducted and replaced by the cost of the student’s special education instruction. If a student’s program is composed of both special education instruction and regular instruction components, each portion of the student’s programs will contribute a prorated portion to the final amount.

Line 47 is the cost of the general program operational fixed cost. This amount per student/day is determined by subtracting general instruction and Fund 27 transfer from the total regular tuition per day.

Lines 48 through 53 calculate the total of fixed cost in Fund 27. The functions listed are Fund 27 services available to all in special education without regard for the program they are in. For this reason the total costs are charged off to all students in the special education program. Like all fixed costs, Fund 27 fixed costs are charged on the basis of availability rather than actual delivery.

Lines 48 through 55 set the per student/day amount of fixed cost and Fund 27 deductions. To calculate this section you must determine the FTE ADM of all students in special education functions not just those in the particular function in question. The ADM is found in district attendance and membership records.

Lines 56 through 68 are concerned with the resulting calculation of a special education student’s per day instructional program cost. The amount on line 68 is made up of the per day rate for the special education function, the Fund 27 fixed cost and the regular education fixed cost.

Standard Tuition Claim Forms — Page Four-Standard and Page Four-State

Completing Page Four-Standard Claim PI-1524 FF (Not To Be Used For State Tuition Claims)

PI-1524-FF is to be used in instances where the tuition being billed is not a claim for state tuition. You will provide page 4-standard to the agencies or individuals to be billed.

Begin PI-1524-FF by listing the function number of the special education program (if the student[s] were in special education) in line FF1.

Line FF2, the special (education) rate is taken from line 68.

Line FF3 is taken from line 42 on page three and is the daily rate of the regular education program.

On Lines FF4 and FF5 enter the percentages of the student's program in Special Education and in regular education (if mainstreamed).

FF6 shows the composite rate per day in Special Education. FF7 shows the composite rate per day in regular education.

FF8 and FF9 are reminders of the rates per day of general transportation and general aid. Be sure to enter zero for transportation if general transportation was not provided and zero for general aid if the student was not counted for membership. Instances of counting the student are very rare.

Tuition Register

In lines one through 68 tuition was calculated. The amount calculated could apply to one or more than one student, providing all of the students in question received identical instructional services. The tuition register on page four is critical in determining who and how many students are to be billed for in this calculation. On the tuition register list each student and the required data for each. Enter in Column F the number of days each was enrolled. The total of days enrolled drives the table titled, "Summary of This Page" located near the bottom of page four-standard.

On the summary table mentioned above it is necessary to show in line FF10 the number of students counted for membership and the number not counted.

In line FF11 enter the total days enrolled for those counted and not counted. These numbers are taken from the tuition register.

Line FF12 is the total of special tuition to be billed. Line FF12 is derived by multiplying days enrolled, line FF11, by the daily rate of special education, and line FF6.

Line FF13 is the total of regular tuition. It is derived by multiplying days enrolled, line FF11, by the rate of regular tuition, line FF7.

Lines FF14 and FF15 are for any deductions that might result for transportation or general membership aid counting as mentioned numerous times before. To calculate the transportation deduct, multiply days enrolled by line 41 from the calculation pages. Enter only if regular transportation was not provided. To calculate the aid membership deduction multiply the days enrolled by line 43 from the calculation pages. Enter only in the rare instance in which a standard tuition student was counted for membership.

Line FF16 is the total of the column. Line FF16 is obtained by adding lines FF12 and FF13 and subtracting lines F14 and F15.

Note: Unlike previous tuition forms, it is not necessary to show fixed costs on the standard tuition claim because those costs are already factored into lines FF2 and FF3. Also note that special allocable costs are not shown on this page. They will be totaled separately and added in the appropriate line on page five.

Completing the Standard Tuition Claim, The "Invoice"

The top half of this page is used to identify the Claimee (agency or person being billed) and the agency sending the claim. The period of service, either regular school year or summer school must be designated.

The critical portion of page four-standard and page 4—state is the "Summary of Claim" table on the bottom half of the page. In this table the district will bring all charged services together and present the total for one or more students to the Claimee for payment. This page will be presented to the agency, school district or individual being billed. In the case of state tuition claims, the page is presented to DPI.

Entries on line one consist of:

Column A, the total number of students on the page four register.

Column B, the total number of days enrolled, from the page four register.

Column C, the total of special tuition from page four.

Column D, the total of regular tuition from page four.

Column E, the total of columns C & D.

On line two enter the total of special allocable cost from the worksheets or from SAC calculation tables.

Line three is used to show the deductions for general transportation and/or general state aid if applicable.

Line four allows for entry of any pre-payments. The prepayments will be deducted from the total currently being billed.

Line five totals the previous lines and subtracts out deductions and the amount previously paid. Line five, column E is the amount the districts expect to receive in payment for service provided.

Notes on Various Types of Student Programs

The methods and variation for delivery of educational services have exploded in recent years. The old concept of self-contained classes in special education for example is no longer the rule. Additionally the list of alternatives that a district may provide services has grown considerably. This list includes, among others, use of district staff, 66.30, CESA programs, county facilities, and tuitioning students to other districts or out of state. No set tuition formula can hope to fit all the variations neatly. Calculating tuition therefore may require ingenuity on the part of the agency billing the costs. Following are some examples of service delivery and how it may relate to tuition calculation.

1. Multi categorical. The multi categorical function, 27E 158 000 000 project codes 011 and 019 allows for the inclusion in one function instructional services that may previously have had to be separated each in its own function. This provides an alternative to school districts in how services will be delivered. A district may still provide services in the established functions for those programs or the district may combine them into the multi categorical function.

Example: A district does combine LD and ED in a multi categorical function. A member of this class is a tuition student diagnosed as ED. Tuition for this student’s instructional services is based on the cost of the multi categorical function not a cost apportioned to LD or ED. Indeed there is little basis for such division of expenditures. This lack of distinction applies only to financial aspects.

2. Phantom Students. With the advent of open enrollment there is a greater possibility that a district may be responsible for providing services for a student who never sets foot in their district.

Example: The CESA in district A hosts a very unique full time program housed in its facility or a "neutral" site. District B is in a different CESA. A student in District B wishes to attend the program in district A’s CESA and so transfers to District A through open enrollment and is placed in the CESA program. The student may never actually attend a class in District A but the district is responsible for paying the CESA cost. District A will be made "whole" by billing district B for tuition.

How does district A calculate the tuition? Since the district provides no services, there is no basis for charging beyond the cost billed by the CESA. In this case the district can ignore page one through four and bill district B by sending only page five along with a letter explaining what the billed amount was for. This procedure would be the same if the service were provided by means of a 66.30 or other "third party" rather than the CESA. It is a state tuition claim, page four-state must also be completed and submitted to DPI.

3. Services Provided Through a Third Party With Some Services Provided By The District

In situations where the district provides special education instruction through the CESA, 66.30 with another district or some other third party as well as providing services through district staff or facilities tuition is billed similar to the phantom student. If services provided by the district consist only of special allocable costs such as special transportation or an aide, the district may ignore pages one through four and bill the sending district, District B, as above. Special allocable costs can be added directly to page five. Again a letter explaining the breakdown of costs including the special allocable cost must accompany the page five invoice. If a state tuition claim, page four-state must also be completed and submitted to DPI.

4. Services Provided Through a Third Party With Some Regular Education Services By The District.

Example: A district wants to bill another district for a student who receives special education services through a CESA program half of the day. The student receives regular education services through the receiving district the other half of the day. To calculate tuition in this situation the district would have to calculate the regular education component using pages one through three. The district would then assume the special education portion to be the costs billed by the CESA. Any reference to special education in pages one through three could be ignored and the amount charged by the CESA placed directly on page four-state or page four-standard. The regular education portion will be carried forward from the first three pages onto page four or five and then to page five. Any allocable costs can be determined separately and added to page 6. As above, a letter of explanation must accompany the page five invoice.

5. Full Inclusion

Full Inclusion students may be treated as though they are in regular education full time with an additional cost for special education services. This would entail the charging off of regular education charges as though there were special education instruction. In addition to this cost would be special education and general fixed cost.

Notes on Calculating Supplemental and Special Allocable Cost

If the cost of a supplemental or allocable cost is known, simply use the known amount as the supplemental or allocable cost to be added to page five. An example of a known allocable cost is the cost of a "one on one" aide. If the cost of an OT service per "treatment" is known, the full cost can be obtained by multiplying the per treatment cost by the number of treatments.

In other cases it may be necessary to prorate the total cost based on the percentage of cost that can be attributed to the individual student.

For questions about this information, contact dpifin@dpi.wi.gov (608) 267-9114

Last updated on 2/25/2008 12:04:50 PM