School officials are concerned that the decision by the state to cut federal funding will have a negative impact on their capacity to attract and keep essential staff members who work with students with disabilities.
Texas is currently reclaiming over $607 million annually in federal funding for special education services. This decision is causing concern among local school district officials who predict that it will further strain the budgets allocated for students with disabilities.
In the past year, the Texas Health and Human Services Commission, responsible for overseeing the program at the state level, has implemented stringent restrictions on the services that school districts can seek federal reimbursement for. These changes have resulted in a significant reduction of $607 million in annual funding that school districts usually rely on through SHARS, as estimated by the health agency.
School district officials and special education advocates express their confusion and concern over the lack of communication regarding the reasons behind these significant changes.
In a 2017 federal audit report, it was discovered that Texas had been billing for services that were not allowed under the SHARS program. As a result, the state was required to repay nearly $19 million, which is only a small portion of the $607 million that has been left unclaimed. Furthermore, the report emphasized the need for the Texas health commission to ensure compliance with federal guidelines.
In a ruling last year, federal appeals officers found that Texas failed to dispute investigators’ findings that the state billed for services that were not allowed. The ruling further criticizes the state for attempting to submit evidence after the deadline had already passed.
Federal officials reject the idea that Texas is being compelled to implement specific modifications to the SHARS program. The Centers for Medicare & Medicaid Services emphasized that as long as states adhere to “broad federal parameters,” they have the freedom to make decisions regarding their programs.
Karlyn Keller, division director of Student Solutions and School Medicaid Services for the Texas Association of School Boards, emphasized the critical importance of considering the well-being of our most vulnerable children. She stressed that it is imperative not to overlook the needs of these children, especially when it comes to funding. Keller expressed concern about the substantial reductions in funding, highlighting the detrimental impact it can have on the services that these children rely on.
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The Texas Education Agency predicts that the reduction in SHARS funding will result in a significant deficit of approximately $1.7 billion per year. This deficit represents the difference between the special education expenses incurred by school districts and the revenue obtained from federal and state funding.
Students with disabilities account for just under 10% of the student population in the Shiner school district, which has a total of 700 students. Recent modifications to the SHARS program indicate that the rural school district, situated to the east of San Antonio, may suffer a loss of over $79,000, as reported by data from the state health agency.
According to Superintendent Alex Remschel, the reduction in SHARS funding will have a long-term impact on the Shiner school district’s capacity to attract and retain personnel who are dedicated to providing one-on-one, small group special education services that their students require. Currently, the district has three special education teachers and several aides who assist them in the classroom. Additionally, the district collaborates with eight other districts to share special education resources through a cooperative program. Unfortunately, this cooperative had to utilize its fund balance this year to compensate for the financial shortfall caused by the SHARS cuts.
Remschel expressed her concern about the decision-makers not fully understanding the impact their choices have on children. She believes that the dollar amount represents more than just money; it represents the faces of kids who are affected by these decisions. This lack of empathy from decision-makers deeply saddens her.
Jason Appelt, the executive director of the special education cooperative in the Shiner school district, is raising concerns about Texas’ choice to not fully utilize the funds provided by the federal government. The special education cooperative comprises nine rural districts, serving approximately 900 students.
According to Appelt, the cooperative used to receive approximately $1 million in SHARS funding in previous years. However, this amount has been reduced by half. It is worth noting that the SHARS revenue accounted for almost 20% of the cooperative’s budget.
According to Coffey, the health commission has been making it increasingly challenging for participants to engage in the program in recent years due to constant changes and adjustments. As a result, staff members, who are already burdened with heavy workloads, are faced with the additional burden of increased documentation and paperwork. Coffey also expressed concern that the agency lacks a clear understanding of the requirements it is placing on school districts.
On October 1, the state health agency made significant changes to the billing process for personal care services offered to students in a group setting, such as bathing, dressing, and feeding. This new approach requires school districts to provide detailed documentation of the precise time and manner in which they assist students, which poses challenges as instructors are often occupied with attending to multiple children simultaneously. Districts argue that complying with this requirement is impractical given the nature of their work.
Coffey expressed his concern about the change, questioning the underlying purpose behind it. He wondered why the change was being made and how it would contribute to the goal of the Health and Human Services Commission, which is to ensure timely and efficient delivery of funding and services to students in need.
According to Kami Finger, the assistant superintendent for school support and special services at the Lubbock school district, the continuous cuts and modifications to the SHARS program in Texas suggest a “cultural issue.” Instead of maximizing the reimbursement funds that are available to the state, the state health agency is giving in to fear due to the federal audit.
According to Finger, whose district is facing a loss of over $5.4 million due to funding cuts, the fear of not doing things correctly from the start is hindering them. This fear, combined with the financial challenges, is putting district administrators in a difficult position where they have to make tough decisions about which programs and services to strategically abandon.
The federal audit, which took place from October 2010 to September 2011, focused on the Austin and Dallas school districts. It found that overbilling had occurred due to Texas not consistently adhering to its policies and procedures to ensure the accuracy and support of claimed costs for direct medical services.
Federal officials issued an appeal decision last October, stating that Texas had numerous opportunities to present evidence disputing the earlier findings of investigators but failed to do so within the given timeframe.
MSB School Services is a trusted vendor that offers consulting and support to approximately half of the school districts participating in the Texas SHARS program. Furthermore, they have successfully collaborated with schools in various states to effectively administer this program.
Tabbatha Callaway, CEO of MSB School Services, acknowledges that there were issues with the program as highlighted in the audit. However, she points out that she has not received any documentation from the state indicating that Texas had to implement such severe funding cuts. According to Callaway, the health commission has done an impressive job of portraying the situation as difficult and complex.
According to her, the Texas school districts have the necessary documentation that could have assisted the state in addressing the audit. However, she mentioned that the commission has not made any efforts to collaborate with the school districts.
Callaway expressed his frustration with the lack of communication from the opposing party, stating, “We’ve made numerous attempts to meet with them and engage in dialogue to gain a better understanding of the situation, but unfortunately, we haven’t been successful in making any meaningful progress.” Despite the challenges, Callaway remains hopeful and emphasizes the importance of exploring potential solutions to recover the lost funds.
The state health agency stated that it is collaborating with state education officials to ensure that school districts are knowledgeable about SHARS. They hold annual meetings and training sessions to promote awareness. To address the need for more transparency and support, the agency has established a Medicaid resource and training team specifically for districts participating in SHARS.
Many school district officials are currently reevaluating their decision to participate in the program, given the significant changes that have already been implemented. Additionally, some rural school districts, which did not receive substantial funding from SHARS, have decided to withdraw from the program. Keller of the Texas Association of School Boards highlighted these developments.
According to Keller, relying on these programs for funding and then having them disappear can leave individuals in a difficult situation. He explains that some individuals choose not to participate in such programs because they prefer to have a clear understanding of their funding situation rather than taking a risk and potentially being left without sufficient funds.
Legislative intervention has been a topic of much debate and discussion in recent years. Lawmakers have been grappling with the question of how much government regulation is necessary to protect the interests of the public. While some argue that too much regulation stifles innovation and economic growth, others believe that without government intervention, certain industries would run amok and exploit consumers.
