Report 2019-108 Recommendation 12 Responses

Report 2019-108: Sacramento City Unified School District: Because It Has Failed to Proactively Address Its Financial Challenges, It May Soon Face Insolvency (Release Date: December 2019)

Recommendation #12 To: Sacramento City Unified School District

To prevent a similar fiscal crisis in the future, Sacramento Unified should do the following by July 2020:

Adopt a policy that guides staff on steps they should take to ensure that special education expenditures are cost-effective. The policy should include consideration of options for offering services, including those provided by district staff or by contracted providers.

Annual Follow-Up Agency Response From October 2022

The State Auditor expressed concern with the costs for the District's use of contracted services for students with special needs, especially residential placements. Federal and state law require services be provided to students with disabilities through the IEP process and students shall be placed in the least restrictive environment which enables them to make appropriate progress based on assessed needs. The SPED Department's changes include revising and adopting critical policies concerning how it provides services, including BP/AR 6159 governing the Individualized Education Process. Most specifically on point to this recommendation is BP 6159.2, adopted by the Board on December 16, 2021, addressing when non-public, non-sectarian schools and agencies may be used by the District to meet the needs of students consistent with the law. The policy specifically provides that:

"No district student shall be placed in a nonpublic, nonsectarian school or agency unless the student's individualized education program (IEP) team, which shall include the students parent(s)/guardians(s), has determined that an appropriate public education alternative does not exist and that the nonpublic, nonsectarian school or agency placement is appropriate for the student, in light of the students' unique circumstances," and that, "Within 15 days of any decision for an out-of-state placement, the student's IEP team shall submit to the Superintendent of Public Instruction a report with information about the services provided by the out-of-state program, the related costs, and the district's efforts to locate an appropriate public school or nonpublic nonsectarian school or agency within California. (Education Code 56365)"

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From October 2021

On February 18, 2021, the Budget Department brought to the Board the proposed revised Board Policy 3100 (Reserves and Use of One-Time Funds), which was approved. See https://www.scusd.edu/sites/main/files/file-attachments/7.3_item.pdf.

The Special Education Department is working on updating Board Policy and Administrative Regulation 3312 (Contracts) and plans to bring an updated version to the Board for its approval in the 2021-22 fiscal year.

Additionally, the Special Education Department is working with the Human Resources Department to update job descriptions to confirm alignment with current laws and regulations, best practices, and level of staffing needs within the District.

The department and staff responsible are Superintendent Aguilar and Dr. Sadie Hedegard Assistant Superintendent Special Education, Innovation, and Learning.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

1-Year Agency Response

The District's work with outside entities such as CCEE and retained experts to review its Special Education Department is continuing. The Special Education Department has begun the work on restructuring to meet the challenges the District faces in providing FAPE to its students with disabilities in an efficient manner.

The COVID-19 related school closures and distance learning has presented many additional challenges in this work, not the least of which is providing legally required assessments and services via distance learning exclusively while in-person services continue to be discussed with labor partners. The Department expects to continue its department-wide work to retool including updating policies related to provision of services in a cost-effective manner, including BP/AR 6159.2 which clarify that only when the district is unable to provide direct special education and/or related services to students with disabilities, the Governing Board may enter into a contract with a nonpublic, nonsectarian school or agency to meet a student's individualized education program (IEP) needs.

These policies will be evaluated together with the SPED department-wide reviews described in previous updates for a comprehensive SPED improvement plan that is expected to be presented to the Board in 2021.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

The District has several policies and procedures which are relevant to the utilization of cost-effective practices in special education. It is important to ensure that these policies remain compliant with the District's legal obligation to design special education programs in response to individual student need and not solely based on cost. In an effort to balance these goals, a complete review of the District's policies was completed and are reflected in the proposed changes to policies and regulations that the District is providing to the Auditor, including BP/AR 6159 and 6159.2 which clarify that only when the district is unable to provide direct special education and/or related services to students with disabilities, may it enter into a contract with a nonpublic, nonsectarian school or agency to meet the student's IEP needs. In AR 6159, language is added to reference the special education procedural manual which provides guidance to staff on the utilization of various cost-effective strategies. Language is also included regarding process to ensure due diligence for determining the necessity and regular evaluation of such placements. The District will also consider the addition of a Board Policy addressing Least Restrictive Environment, with the inclusion of language aimed at the utilization of cost-effective practices.

These updated policies will be evaluated together with the SPED department-wide reviews described at the 60 day update for a comprehensive SPED improvement plan that is expected to be presented to the Board in fall 2020.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

SPED Policy is currently being reviewed and developed to provide greater guidance on the consideration of cost friendly alternatives for providing FAPE to students, including regarding mental health resources available from outside entities and relating to residential placements.

The District is also currently undergoing a broader Special Education Department review with the assistance of CCEE, and anticipates additional outside experts also being utilized by the District in the coming months that will further evaluate the effectiveness and equity of the District's SPED services.

Currently there is a focus on the development and implementation of a strong multi-tiered system of support ("MTSS") which the District believes will strengthen classroom and site based teaching/learning and interventions for students whereby over time referrals for special education services can decrease due to student need being met prior to a referral for services.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2019-108

Agency responses received are posted verbatim.