District owes state $1.7 million

April 25, 2006

By JOEL DAVIDSON

Frontiersman

MAT-SU - After a meeting with state education officials Wednesday, the Mat-Su School District confirmed it expects to lose up to $4 million from previously projected special education funds next year.

In addition, the district also must pay back $1.69 million to the state for money it wrongly received this year.

The state claims Mat-Su accepted &#8220intensive education” funding for 69 students who didn't actually qualify under state law. Intensive funding is five times the amount for regular education students, which amounted to $24,595 per intensive-education student in fiscal year 2006.

Intensive funding is reserved for students with severe disabilities who require added supervision and assistance.

At a Mat-Su School Board meeting earlier this month, Assistant Director of Student Support Services Lucy Hope told board members that the funding dispute resulted from a disagreement with the state in terms of which students qualified for intensive financial aid.

The Mat-Su district claimed 306 students for the higher funding level this year. In February, though, the Department of Education and Early Development conducted an audit of special education in the Mat-Su to verify they were compliant with the special education application for state and federal financial aid. As a result of the audit, the state found 69 students who were not qualified for the higher funding allotment.

To receive intensive funding, students must meet seven different criteria. Missing even one category disqualifies the student. The state found two main areas where Mat-Su students received funding but did not qualify for them.

One category requires that students need and receive assistance in two or more self-help skills such as eating, toilet training, dressing or other independent-living skills.

The state disputed the district's claim that it needed to provide toiletry skills to a number of preschool students.

The state also denied the district's claim that certain students needed assistance with anger management skills. In addition, the state found the district was not providing continuous care for some students - a mandatory criterion to qualify for intensive funding.

&#8220We didn't see that one-on-one care throughout the day,” said DEED information officer Eric Fry.

As a result of DEED's interpretation of the law, the Mat-Su district estimates it will claim only half the number of students for intensive funding next year as it did in fiscal year 2006.

After a teleconference with State Commissioner of DEED Roger Sampson last week, Mat-Su's Chief School Administrator Bob Doyle told board members that the commissioner agreed with the Mat-Su district that they will see considerably less money coming in via special education.

&#8220He did concur that our projected loss for next year is $4 million dollars,” Doyle told the school board. &#8220That is an accurate figure.”

The district is exercising its right to appeal the decision, but barring a reversal by the state, the district will have to arrange repayment of the $1.69 million.

To minimize the financial impact on the district next year, the state is willing to work with the district on an incremental schedule.

&#8220We will ask for the money back in such a way that causes the least amount of harm,” Fry said. &#8220We could get it back through monthly payments next year.”

Contact Joel Davidson at 352-2266 or joel.davidson@ frontiersman.com.