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June 29, 2006 • Vol. XXIX • No. 44

Federal Budget, Medicaid At Issue

The U.S. House of Representatives and the Senate have passed separate versions of the federal budget. Both versions contain major cuts to Title I, a major component of No Child Left Behind, and the Individuals with Disabilities Education Act, the federal special education law.

The federal budget is a year-long process scheduled to be completed by October, but typically it is extended through December.

Many New Jersey school board members plan to schedule meetings with their congressmen in August and September to advocate for increased funding and to address other federal education issues.

To participate or to learn more about federal advocacy, call the NJSBA Governmental Relations Department toll free at (888) 886-5722, ext. 5238.

School-based Medicaid Cuts As part of President Bush’s fiscal year 2007 budget, he is proposing administrative action that would prohibit federal reimbursement for IDEA-related school administration and transportation costs for children with disabilities. While the timing of this possible action is unknown, the Centers for Medicare and Medicaid Services could begin initiating the change this summer.

Under the Medicare Catastrophic Coverage Act of 1988, school districts can receive Medicaid money for health services that they deliver to Medicaid-eligible children with disabilities for diagnostic, preventive, and rehabilitative services as well as transportation to those services. Nixing the reimbursement would substantially increase the financial burden on local school districts to cover Medicaid-related costs.

For more information, contact Chrisanne Gayl, National School Boards Association director of federal programs, at (703) 838-6763, or by e-mail at cgayl@nsba.org.