Monday, 24 September 2007 23:43

Fed to Cut Special Ed Funding

The Bush administration has announced plans to stop reimbursing states for school-based Medicaid activities, including special education, a move that would cost California schools more than $100-million a year and the Amador County Office of Education about a quarter of the amount that they currently receive in reimbursements. The Amador County Office of Education, like other Districts statewide, is scrambling to figure out how to backfill transportation costs that are already encroaching on the Unified School District’s General Fund. The transportation programs must continue because federal law requires schools to provide special services for disabled students. "It’s bad, bad, bad” says Amador County Special Education Director Tammy Watson.

Watson states that the Federal government seems determined to place the financial burden of federally mandated special education programs back onto the states, which in turn pass them on to the districts. Watson does note, however, the reimbursements for speech, psychology, and other services will continue - it’s just the transportation component that is on the chopping block. The Amador County Office of Education receives about $85-thousand in reimbursement for various Medicaid services. The cut represents about 21-thousand dollars per year to the already strapped local office. Public comments on the rule change, published Sept. 7 in the Federal Register, are due by Nov. 7.

The cuts will take effect by the 2008-09 school year unless the administration changes its mind -- which is unlikely based on the administration's education track record. The rule change would not affect payments for direct medical services provided in schools to children who qualify for special assistance under the Individuals With Disabilities Education Act. Medicaid officials say the new regulations would reduce administrative fraud and waste and save the federal government $3.6 billion over five years.