Special Education Extraordinary Cost Pool for NPS/LCI and Mental Health Services

Funding Description

As part of the Special Education Assembly Bill (AB) 602 formula, the Extraordinary Cost Pool (ECP) program reimburses special education local plan areas (SELPAs) for extraordinary costs of single placements in nonpublic, nonsectarian schools (NPS) and special education-related services for pupils residing in licensed children's institutions (LCI). This program also reimburses necessary small SELPAs defined in California Education Code (EC) Section 56212, for extraordinary costs associated with educationally related mental health services, including out-of-home residential services. Costs of placements and services for single students in excess of the annual threshold amount will be reimbursed, subject to available funds.

Eligibility

Eligible Applicants	Local educational agencies
Required Eligibility Criteria	SELPAs that have extraordinary cost of single placements in NPS and related services in LCI and necessary small SELPAs that have extraordinary costs associated with mental health services are eligible.
Other Eligibility Considerations	Not applicable
Eligible Grade Level(s)	Not applicable
Eligible Age Level(s)	Not applicable

Funding

Legal Authority	California Education Code Section 56836.21; Budget Item 6100-161-0001(1)(16)
Source / Type	State / Apportionment
State Fiscal Year	2024-25
SACS Resource / Revenue Codes	6500 / 8311
Total Available	$20,000,000
Recipient Amount	See allocation formula
Match Requirement	No
Allocation Formula	Costs for a single placement in excess of the applicable threshold amount will be eligible for reimbursement. Funds shall first be available to fully reimburse extraordinary costs associated with educationally related mental health services, including out-of-home residential services for necessary small SELPAs (NSS), as defined in EC Section 56212. The threshold amount for 2024-25 for NSS is the lesser of $98,992.16 or one percent of the SELPA's net entitlement for the 2019-20 fiscal year. For NSS ECP for Mental Health (NSS ECPMH) funding details, refer to NSS ECPMH web page. Remaining funds shall be available for reimbursements for placements in NPS, pursuant to EC Section 56836.21, and pupils residing in LCIs. The threshold amount for 2024-25 for SELPAs that are not considered NSS as defined in EC Section 56836.21 is $98,992.16. This is equal to the 2023-24 threshold plus the 2024-25 cost-of-living adjustment of 1.07 percent. If the total reimbursable amount exceeds the current year appropriation, all claims will be prorated. For ECP funding details, refer to the ECP web page.

Important Dates

Date Application Available	Unavailable
Due Date	October 31, 2025
Expected Notification Date	February 20, 2026

Additional Information

Application	Principal Apportionment Data Collection [http://www.cde.ca.gov/fg/sf/pa/]
Background	Unavailable
Fiscal	Unavailable
Other	Funding for Extraordinary Cost Pool claims are allocated at the Annual Certification of the Principal Apportionment, which is certified by February 20th in the following fiscal year (with that year's First Principal Apportionment certification).

Contacts

Program	Principal Apportionment Section, 916-324-4541, pase@cde.ca.gov
Fiscal	Principal Apportionment Section, 916-324-4541, pase@cde.ca.gov
Division	School Fiscal Services Division, 916-324-4541