State Categorical Special Education Aid FAQ

Special Education Frequently Asked Questions

Eligible Aid Expenditures and Reporting

Can an agency directly claim contracted services provided by CESAs?

The DPI is updating its guidance related to and processes for providing this aid to allow reporting of payments to CESA (Object 386) as aid eligible for certain functions. Beginning with the fiscal year 2025-2026 annual report, LEAs will include the costs for certain functions as Aid-Eligible Costs (Project 011). The 2026-2027 aid payments will be paid directly to the LEAs and will not flow through the CESAs. An updated Fund 27 matrix for 2025-2026 will be released shortly and posted to the WUFAR Overview webpage. 

It is important that LEAs review the payments to CESA (Object 386) coded to Project 019 and identify and reclass eligible costs to Project 011. Eligible costs include charges for contracted staff members eligible for categorical aid.  Please review the new and revised specific guidance related to contracted services. Payments for conferences, professional development offerings, materials, and supplies, etc. are not eligible for categorical aid and should not be included in the reclassification. LEAs will have to complete an addendum as part of their 2025-2026 Annual Report which will document the LEA’s understanding of the requirements and verify that only eligible costs are included.

Fund 27 Accounts for Payment to CESA (Object 386) have been added to Project Code 011 (Aid-Eligible Costs).  Payments from LEAs to CESAs for contracted special education staff can be coded to Project Code 011 to be eligible for Special Education Categorical Aid.  (link to School Finance Bulletin 1076) 

Are Worker’s Compensation costs aid eligible?

No, Worker’s Compensations expenditures are not aid eligible.

What are the rules for receiving Special Education State Categorical Aid for substitute teachers?

A short-term substitute may hold any valid DPI (Department of Public Instruction) license and may be employed or contracted to teach any subject at any grade level, but for no more than 45 consecutive days in the same teaching assignment. (Formerly 20 consecutive days, changed to 45 under 6/2016 revision)

A long-term substitute must be a licensed teacher or a licensed substitute teacher and employed or contracted only in the subject and grade level in which the teacher is licensed. A long-term substitute is budgeted in the same manner as a permanent teacher. 

An emergency license or permit may be granted to a long-term substitute.

Pupil Services Personnel Eligibility Reimbursement Percentage Cap Validation

What expenditures should I include on the Pupil Services Personnel Eligibility (formerly WI Act 221) reporting for healthcare professionals?

Only the salaries and benefits for professional level social workers, guidance counselors, registered nurses and psychologists should be included in the addendum.

Should I include only Fund 27 salaries and benefits for Pupil Services Personnel Eligibility staff (formerly WI Act 221) WISEdata Finance?

No, the addendum should reflect the salaries and benefits of professional level positions across ALL funds.

Can I include para-professional or non-licensed support staff, such as secretaries or aides, in those functions on the Pupil Services Personnel Eligibility (formerly WI Act 221) data?

No, only the salaries and benefits of those licensed professional positions should be included in the addendum.

I have exceeded the maximum allowable for Pupil Services Personnel Eligibility (formerly WI Act 221). How do I resolve this issue?

Review the numbers entered on the Pupil Services Personnel Eligibility (formerly WI Act 221) Addendum to make sure it is accurate. The amount reported should be the total salary and benefits across all funds, not just the Fund 27 portion. If those numbers are correct, you will need to reduce the amount recorded in project 011.

How do I resolve the Pupil Services Personnel Eligibility (formerly WI Act 221) validation if the numbers are correct?

The amount recorded in project 011 will need to be reduced to the maximum allowable. If these charges are justifiable as special education expenditures, then they would stay in Fund 27 and you would move the amount over the maximum allowable out of project 011 and into project 019. If the amount over the maximum is not special education related, the proper way is to move those expenditures to fund 10. With either option, be aware that your Maintenance of Effort (MOE) for the IDEA flow-thru grant could be impacted.

a) What do I do if I have underreported my project 011 aid eligible expenditures for one of the Pupil Services Personnel Eligibility (formerly WI Act 221) functions and I would like to increase my 011 expenditures to receive categorical aid on my full maximum allowable amount, but I do not have enough expenditures in Fund 27?

Since you do not have enough expenditure in Fund 27, you would have to adjust your Fund 27 transfer.

SPED Reporting: In Fund 10, you will increase function 411000, object 827 and decrease the existing account with your expenditures. In Fund 27, you will increase your transfer in function 411000, source 110 and increase your expenditure on the appropriate Pupil Services Personnel Eligibility (formerly WI Act 221) function.

Annual Report: Increase the expenditure on the appropriate Pupil Services Personnel Eligibility (formerly WI Act 221) function.

b) What do I do if I have over-reported project 011 expenditures for one of the Pupil Services Personnel Eligibility (formerly WI Act 221) functions and I would like to decrease Fund 27 expenditures for that function and move the amount back to fund 10?

Since you have too much expenditure in Fund 27, you will have to adjust your Fund 27 transfer. In fund 10, you will decrease function 411000, object 827 and increase the account you want your expenditure in. For Fund 27, you will decrease your transfer in, function 411000, source 110 and decrease your expenditure in the appropriate Pupil Services Personnel Eligibility (formerly WI Act 221) function. Annual Report: Decrease the expenditure from the appropriate Pupil Services Personnel Eligibility (formerly WI Act 221) function.