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U.S. Department of Education: Promoting Educational Excellence for all Americans

Excess costs (Sec. 300.16)

Comment: One commenter stated that an example on calculating excess costs would be a helpful addition to the regulations.

Discussion: We agree with the commenter and will include an example of calculating excess costs in Appendix A to Part 300--Excess Costs Calculation. In developing the example, we noted that while the requirements in Sec. 300.202 exclude debt service and capital outlay in the calculation of excess costs, the definition of excess costs in Sec. 300.16 does not mention this exclusion. We believe it is important to include this exclusion in the definition of excess costs and will add language in Sec. 300.16 to make this clear and consistent with the requirements in Sec. 300.202.

Changes: We have revised Sec. 300.16(b) to clarify that the calculation of excess costs may not include capital outlay or debt service. We have also added Appendix A to Part 300--Excess Costs Calculation that provides an example and an explanation of how to calculate excess costs under the Act. A reference to Appendix A has been added in Sec. 300.16(b).