Long Term Care & Treatment Programs (LTCT)

“Long Term Care & Treatment” programs are intended for
the treatment of children with mental health and/or
behavioral issues.
There are 47 programs in Oregon that are recognized and
funded by ODE consisting of both day treatment and
residential sites.
These sites vary greatly by size and number of students
served, ranging from 8 students served, up to 92 students
An average of 878 children have been served thus far in
these 47 sites during the 2013-14 school year.
Many factors go into placement and treatment decisions
and these factors determine a student’s length of stay in
these programs.
Children may be placed in these programs from a few
weeks to over a year.
Children can be placed in these programs by a public
agency, a private entity, or a parent.
ODE is responsible for the payment of costs of educating
students in LTCT programs.
“Educational services” paid for by ODE do not include
transportation, care, treatment, or medical expenses.
The school district in which the LTCT site resides is
responsible for providing educational services to
students placed in these sites.
Currently ODE contracts with 26 districts or ESDs to
provide educational services at the 47 separate LTCT
Funding for the 2013-14 school year was based upon a
monthly estimate of 1,150 students, thus far we have
served an average of 878 students per month.
The current LTCT funding formula is found in
OAR 581-015-2572 and defined in 1(b) as:
 (Service level factors) x [(the contracting district's NOE
in year one) x (state agency slots for year one) + (the
contracting district’s NOE in year two) x (state agency
slots for year two)] = total state funding contract
 Funds are then distributed based upon the estimated
count of students per contractor.
Explanation of formula:
 Service Level Factors:
 1.75 for day treatment sites
 2.0 for residential treatment sites
 NOE (Net Operating Expense): is a dollar amount
calculated per district based upon regional and other
unique cost factors determined by ODE.
 Slots: The estimated number of students in
In the 2009-11 biennium LTCT contractors
were budgeted $37,060,060.
 They invoiced ODE for $35,599,031
 In the 2011-13 biennium LTCT contractors
were budgeted $34,246,414
 They invoiced ODE for $32,562,610
For the 2013-15 biennium LTCT funds to support education
services in LTCT sites came from the following sources:
 General Fund
 State School Funds
 Federal Funds (Title I-D & IDEA)
 Total allocated funding for the 2013-15 biennium was
Following the current LTCT funding formula (including
federal funds), per child funding for the 2013-14 school
year was:
 $13,687 per year for a day treatment student.
 $15,642 per year for a residential treatment
In comparison, using the current SSF formula (not
including Federal Funds), per child funding for the
2013-14 school year was:
 $6,521 per regular student per year
 $13,042 per special education student (avg. x 2) per
Up to and including the 2013-14 school year, monthly
student counts were reported to ODE by the LTCT
contractors. ODE then calculated the estimated student
counts per site by taking the highest monthly
attendance count, the average monthly attendance
count, and calculating the median between these two
This median number was then used as the estimated
student count for calculating contract amounts for each
contractor per site.
This calculation method led to an overestimation of
student counts by adjusting the average count upwards
based on the highest count.
Starting with the 2014-15 school year, and moving
forward, the following will be used to calculate student
 Each LTCT site will be required to track daily
attendance and report these counts to ODE
 ODE will then use the daily attendance counts to
calculate actual annual average attendance and that
number will be used for calculating contract
amounts for each contractor per site.
 This count method relies solely on the actual
attendance counts per month and will therefore be
a more accurate method of estimating counts.
HB 5201 directed ODE to inform the School Funding Task
Force what were the “actual costs of providing adequate
and comparable education services” under the LTCT
ODE chose to approach this question from the
perspective of identifying an adequate service level
necessary to serve this population and then extrapolate
costs from this information.
ODE defines adequate service levels as one certified teacher
and two instructional assistants (IA’s) for every 8-10 LTCT
students. For populations of 10-15 students, one teacher and
three IA’s. For populations of 16-20 students, two teachers
and four IA’s, etc.
These ratios were determined based upon general practices
currently used in the field and commonly considered to be
This ratio can then be used to calculate the minimum funding
needed to achieve this level of support for each LTCT site
based upon the slot counts (students served).
Additionally, funding for administrative services, special
education services, and supplies would be factored in as well.
Applying Adequate Service Level to a specific
 In 2013-14 the Ashland SD was funded on an estimated 15
students in day treatment programs and 31 students in
residential programs.
 Applying the Adequate Service Level principle we obtain the
 For Day Treatment 15 students = 1 Teacher and 3 IA’s
 For Residential 31 students = 3 Teachers and 6 IA’s
 For an adequate staffing level of 4 Teachers and 9 IA’s
 Using the state average for teacher and IA salaries, Ashland
would need estimated funding of:
 $350,608 ($87,652 x 4 T’s) plus
 $428,634 ($47,626 x 9 IA’s) totaling
 $779,242 in funding for one year, or
 $1,558,484 in funding for a biennium, plus
 $155,848 for administrative and SPED service charges for
total estimated funding of
 $1,714,332 needed for the biennium to achieve an
adequate service level.
 In the 2013-15 biennium Ashland SD was contracted to
receive $1,307,367 in LTCT funding.
HB 5201 also directed ODE to present
“various options for allocating and
distributing funding” to LTCT programs
“in an equitable manner to maximize
the amount that is used for direct
educational services to these students.”
Maintain current funding sources
Maintain current funding levels
Maintain current funding formula
Currently, day treatment students are funded at a 1.75
service factor, while residential students are funded at a 2.0
service factor.
These service factors were based upon an assumption that
day treatment students do not require the same level of
support as residential students. ODE believes this
assumption is incorrect.
Change the 1.75 service factor for day treatment funding
and increase it to a 2.0 service factor so that it is consistent
with residential funding.
 This would balance funding for the day treatment
population of children who are in general, nearly
identical to the residential population.
 This could be done relatively quickly because it would
only require a language change in department rule.
The separate General Fund appropriation for LTCT would be
All LTCT funding would come from the SSF.
The formula would use funding per ADMw times the number of
weighted students in LTCT programs, instead of Net Operating
Expenditures per ADM.
To maintain current LTCT funding levels, an estimated weight of
2.4 would need to be implemented for LTCT students.
If the weight is not increased, LTCT funding would see a 20% drop
from current levels.
 LTCT programs would be funded like other Oregon educational
 When funding increases for education, funding would increase for
 This would also eliminate ODE as the “middle man” and provide
the funding dollars directly to the school district responsible for
providing the educational services at each LTCT site.
Provide the level of LTCT funding needed to assure
that all LTCT sites could achieve ODE’s defined
level of adequate service.
Preliminary calculations suggest this would require
an additional $16,000,000 in LTCT funding per
Mitch Kruska, Director, Educational Programs
Phone: 503-947-5634
Email: [email protected]
Brian Reeder, Assistant Superintendent of Policy
and Analysis
Phone: 503-947-5670
Email: [email protected]

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