School board takes aim at flaws in UV’s non-resident tuition rates

The Unadilla Valley School Board is pondering changes to its non-residential tuition policy after a state audit found the district's rates are outside of state guidelines. (Photo by Shawn Magrath)

NEW BERLIN – The Unadilla Valley Central School District is making policy changes for the way it handles non-resident tuition (NRT) rates for special education students after a recent audit found it was out of line with the state regulations.

An audit conducted by the New York State Comptroller's Office revealed that for four of the last five school years, UV overcharged other contracting school districts for nonresidential students who receive special education services and it failed to adhere to the state’s NRT rate cap.

Consequently, UV overcharged seven school districts by a total of $183,250 since 2018.

Unadilla Valley Superintendent Brenton Taylor, who assumed district leadership in 2021, said auditors’ chief concern is one that preceded his role; the board had approved an NRT rate prior to his tenure as superintendent. He said the board is now pondering ways to stay under New York’s maximum allowable NRT rates.

“This is something that we wanted looked into when we met with the auditor because it was something that was done in the past, so we didn't have all the knowledge we needed,” said Taylor. He pointed out that the UV board, years ago, negotiated with contracting school districts to set a fair NRT rate consistent with the costs of educating non-resident students and was below the DCMO BOCES rate. The district also provided a tuition plan to contracting districts that outlined savings for them.

For the 2018-2019 through 2021-2022 school years, the district’s NRT flat rate was $25,000 per student (prorated for students who attended for less than a full school year). However, the state requires two separate rates: one for kindergarten through grade six, and another for grades 7-12. School districts must use the state’s NRT rates unless they’re approved by the state education department (SED) to charge a higher amount.

The audit report found UV’s NRT rate exceeded the state’s max allowable rate during each of those school years, except 2020-2021. The school board says it was unaware of State Ed’s maximum allowable NRT rate and that the district couldn’t exceed it unless approved by the state.

The comptroller’s office said if UV can’t stay under the state’s max NRT rate, it must “consult with SED to obtain the guidelines for calculating a higher tuition rate to determine whether the district can support a higher rate with its accounting records.”

That’s just what UV is now doing, said Taylor.

“We’re submitting this fall for a rate to be approved by State Ed,” he said. “Right now, we’re going to use the state rate; but our hope is that before the end of September, we’ll have an approved rate with State Ed that we and other districts believe will be more reasonable that has a savings to our communities and a savings to our districts.”

As it looks to change its NRT rates, the UV school board is considering factors like teacher-to-student ratio for special education students, and the costs of salaries and benefits for teachers and aides.

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