Section 7.404 - Cost Sharing(1)Public School Special Education Placements. The Department will not fully fund, nor cost share, public school special education placements. However, where the Department places a child in a residential educational facility because no adequate community-based residential program exists for the child, but the LEA has an adequate community-based educational program for the child, the Department shall bear the full cost of both the educational and care/support components of the residential placement. This regulation in no way limits the right of the Department to test the adequacy of the proposed community-based educational program through the due process hearing procedure of the special education statutes and regulations, or to arrange for the provision of the proposed community-based educational program near the child's residential facility.(2)Private Residential School Special Education Placements. If a child's IEP specifies that a private day school program (prototype 502.5) is necessary to meet the child's special education needs and the Department determines that the child should be placed in community residential care for non-educational reasons, then the Department shall share the cost of the placement with the local educational agency. Where a child with a 502.5 prototype is placed in a residential school facility, the Department and the LEA will share the cost of the placement equally, if the facility has no Day Rate established by the Massachusetts Rate Setting Commission. Where the Rate Setting Commission has established both Day and Residential Rates for the facility, the LEA shall pay the Day Rate and the Department will pay the difference between the Day Rate and the full Residential Rate. The Department will not enter into a cost sharing agreement at a rate other than that established by the Massachusetts Rate Setting Commission or at a percentage that differs from 50%/50% for placements where no Day Rate is established, unless more than two agencies are involved in sharing the placement cost.
(3)Other Specific Education Placements. If a child's prototype is 502.6, 502.7, 502.8, 502.9, or 502.11, M.G.L. c. 71B requires the responsible LEA to fully fund the placement. Therefore, the Department will not pay for or cost share 502.6 - 502.11 placements. In addition, the Department will not provide substitute care to any child in need of special education whose individualized education plan (IEP) specifies that a residential school program is necessary to meet the educational goals and objectives of the IEP (i.e., the IEP bears a 502.6 prototype).