281—98.21 (257) At-risk program, alternative program or alternative school, and potential or returning dropout prevention program—modified supplemental amount. A modified supplemental amount is available through a school district-initiated request to the school budget review committee pursuant to Iowa Code section 257.38 as amended by 2015 Iowa Acts, House File 658; section 257.39; and sections 257.40 and 257.41 as amended by 2015 Iowa Acts, House File 658. This amount must account for no more than 75 percent of the school district’s total at-risk program, alternative program or alternative school, and potential or returning dropout budget. The school district must also provide a local match from the school district’s regular program district cost, and the local match portion must be a minimum of 25 percent of the total program budget. In addition, school districts may receive donations and grants, and the school district may contribute more local school district resources toward the program. The 75 percent portion, local match, previous year carryforward, and all donations and grants shall be accounted for as categorical funding.
	   98.21(1) Purpose of categorical funding. The purpose of the modified supplemental amount is to provide funding to meet the needs of identified students for costs in excess of the amount received under rule 281—98.18(257) pursuant to Iowa Code section 257.11(4) as amended by 2015 Iowa Acts, House File 658. The funding shall be used only for expenditures that are directly related to the district’s approved program plan established pursuant to Iowa Code sections 257.38 through 257.41.
	      a.    	 Returning dropouts are resident pupils who have been enrolled in a school district in any of grades 7 through 12 who withdrew from school for a reason other than transfer to another school or school district and who subsequently reenrolled in a public school in the school district.
	      b.    	 Potential dropouts are resident pupils who are enrolled in a school district who demonstrate poor school adjustment as indicated by two or more of the following:
	       (1)  	 High rate of absenteeism, truancy, or frequent tardiness.
	       (2)  	 Limited or no extracurricular participation or lack of identification with school, including but not limited to expressed feelings of not belonging.
	       (3)  	 Poor grades, including but not limited to failing in one or more school subjects or grade levels.
	       (4)  	 Low achievement scores in reading or mathematics which reflect achievement at two years or more below grade level.
	       (5)  	 Children in grades kindergarten through 3 who meet the definition of at-risk children adopted by the department of education.
	   98.21(2) Appropriate uses of categorical funding. Appropriate uses of the funding for an approved program include, but are not limited to:
	      a.    	 Salary and benefits for instructional staff, instructional support staff, and school-based youth services staff dedicated to providing services directly and exclusively to the identified students participating in the approved program beyond the services provided by the school district to students who are not identified as at risk or as potential or returning dropouts. However, if the staff person works part-time with students who are participating in the approved program and has another unrelated staff assignment, only the portion of the staff person’s time that is related to the program may be charged to the program funding.
For purposes of this paragraph, an alternative setting may be necessary to provide for a program which is offered at a location off school grounds and which is intended to serve student needs by improving relationships and connections to school, decreasing truancy and tardiness, providing opportunities for course credit recovery, or helping students identified as at risk to accelerate through multiple grade levels of achievement within a shortened time frame.
	      b.    	 Professional development for all teachers and staff working with identified students under an approved program.
	      c.    	 Research-based resources, materials, software, supplies, equipment, and purchased services that meet all of the following criteria:
	       (1)  	 Meet the needs of K through grade 12 identified students,
	       (2)  	 Are beyond those provided by the regular school program,
	       (3)  	 Are necessary to provide the services listed in the school district’s approved at-risk or returning dropout and dropout prevention program plan, and
	       (4)  	 Will remain with the K through grade 12 at-risk program, alternative program or alternative school, or returning dropout and dropout prevention program.
	      d.    	 Transportation provided by the school district exclusively to transport identified students to an alternative school or alternative program located in and provided by another Iowa school district.
	      e.    	 The portion of the maximum tuition allowed by Iowa Code section 282.24 that corresponds to the portion exclusively providing direct additional instruction and services to an identified group of students above the costs of instruction of pupils in a regular curriculum.
	      f.    	 School-level administrator assigned exclusively to an off-site alternative school or alternative program within the district. If the principal is administering the school or program part-time, the portion of time that is exclusively and directly related to the program may be charged to the program funding, but the portion of time that is related to other purposes shall not.
	      g.    	 Instructional costs necessary to address the behavior of a child during instructional time when those services are not otherwise provided to students who do not require special education and when the costs exceed the costs of instruction of pupils in a regular curriculum, the costs exceed the maximum tuition rate prescribed in Iowa Code section 282.24, the child has not been placed in a facility operated by the state, and all of the following apply:
	       (1)  	 The child does not require special education.
	       (2)  	 The child is not placed by the department of human services or a court in a residential or day treatment program where the treatment necessary to address the student’s behavior was included in the contract with the placement agency.
	       (3)  	 The child is not placed in a hospital unit, health care facility, psychiatric medical institution for children or other treatment facility where the cost of treatment necessary to address the student’s behavior is covered by insurance or Medicaid.
	       (4)  	 The board of directors of the district of residence has determined that the child is likely to inflict self-harm or likely to harm another student.
	      h.    	 Up to 5 percent of the total amount that a school district receives as formula supplementary weighting pursuant to Iowa Code section 257.11(4)“a” as amended by 2015 Iowa Acts, House File 658, or as a modified supplemental amount received under Iowa Code section 257.41 may be used in the budget year for purposes of providing districtwide or buildingwide at-risk and dropout prevention programming targeted to nonidentified students.
	   98.21(3) Inappropriate uses of categorical funding. Inappropriate uses of the modified supplemental amount program funding include, but are not limited to, indirect costs or use charges, operational or maintenance costs, capital expenditures other than equipment, student transportation other than as allowed in subrule 98.21(2), administrative costs other than those allowed in subrule 98.21(2), expenses related to the routine duties of a school nurse, general support for a school guidance counselor including any activities performed with identified students that are also provided to all students, or any other expenditures not directly related to providing the approved program beyond the scope of the regular classroom.
[ARC 8054B, IAB 8/26/09, effective 9/30/09; ARC 9267B, IAB 12/15/10, effective 1/19/11; ARC 0518C, IAB 12/12/12, effective 1/16/13; ARC 1967C, IAB 4/15/15, effective 5/20/15; ARC 2310C, IAB 12/9/15, effective 1/13/16]