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MCOE: some districts hiring special-education staff directly; composite billing clarified
Summary
Staff told the board that some districts are hiring special-education itinerant staff directly instead of contracting with MCOE; staff said MCOE uses a composite rate to bill districts and has provided earlier, more realistic cost estimates to reduce unexpected year-end bills.
Educational-services staff told the board they are seeing a trend of districts hiring special-education staff directly rather than contracting MCOE itinerant staff — a shift driven in part by cost comparisons and timing of fee revenue.
S1 explained that MCOE provides itinerant services (nurses, psychologists, speech-language pathologists, occupational therapists) and bills districts a composite rate that accounts for program costs, mileage and other overhead. "We give them a composite rate... so if they have a senior employee that costs more or a junior employee that costs less, it doesn't matter," S1 said, adding that staff have worked to deliver realistic early estimates so districts are not surprised by year-end reconciliations.
Those adjustments have led some districts to hire staff directly, meaning MCOE anticipates lower demand for some itinerant positions. Board members asked questions about the cost drivers; staff pointed to timing of fee payments, contract adjustments and capacity constraints at the regional center.
