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 sections 257.38 through 257.41. 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, amounts designated from the flexibility account as described in rule 281—98.27(257,298A), 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). The funding shall be used only for expenditures that are directly related to the district’s board-adopted 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 a board-adopted program include, but are not limited to:
	a. 	Salary and benefits for staff, including but not limited to instructional staff, instructional support staff, administrative staff, and guidance counselors; salary and benefits or contract payments for psychologists licensed under Iowa Code chapter 154B, licensed independent social workers or master social workers under Iowa Code chapter 154C, licensed mental health counselors under Iowa Code chapter 154D; and salaries and benefits for school-based youth services staff dedicated to providing services directly and exclusively to the identified students participating in the adopted 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 or on a contract basis with students who are participating in the approved program and has another unrelated staff assignment, only the portion of the person’s time that is related to the program or with such students may be charged to the program funding. The school district shall have the authority to designate in its adopted program plan the portion of the person’s time and related salary and benefits or contract payment amount dedicated to this purpose.
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 staff identified in paragraph 98.21(2)“a” working with identified students under an adopted 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 adopted 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 outside a student’s regular attendance center, located in and provided by another Iowa school district, or an extended school year program.
	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. 	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.
	g. 	Costs incurred for a program intended to address high rates of absenteeism, truancy, or frequent tardiness.
	h. 	Amounts that a school district receives as formula supplementary weighting pursuant to Iowa Code section 257.11(4)“a” 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, buildingwide, or grade-specific at-risk and dropout prevention programming targeted to nonidentified students.
	i. 	School security personnel costs.
	j. 	Any purpose determined by the board of directors that directly benefits students participating in the adopted program.
	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, expenses related to the routine duties and activities performed by a staff member under paragraph 98.21(2)“a” with identified students that are also provided to all students, or any other expenditures not directly related to providing the board-adopted 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; ARC 3632C, IAB 2/14/18, effective 3/21/18; ARC 4298C, IAB 2/13/19, effective 3/20/19; ARC 4813C, IAB 12/18/19, effective 1/22/20]