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March 24, 2000

House Budget Plan Includes $2 Billion More in IDEA Funding for Schools

Measure includes amendment that HCFA abolish or revise its proposal for new school-based Medicaid claiming procedures

The $1.8 trillion Republican budget plan narrowlyon the hill 1.jpg (187234 bytes) adopted early today by the U.S. House includes an additional $2 billion for funding special education programs in fiscal 2001.

That translates into an additional $267 per disabled child. The amount, however, is still far below the promised 40 percent federal funding share for the Individuals With Disabilities Education Act.

H.Con.Res.290
also includes an AASA-backed amendment to halt proposed changes in school Medicaid reimbursement rules from the Health Care Finance Administration (HCFA). The amendment says lawmakers believe HCFA should abolish or revise its proposal for new school-based claiming procedures. Experts in education and health care policy had estimated that the change would cause school districts to lose as much as 75 percent of their current reimbursement for medical services provided to disabled poor children.

Other education increases in the budget plan amount to about $200 million. The Republican plan would increase spending in education overall to $56.8 billion next year. Forty-five percent of the funding is for elementary, secondary and vocational education. Unlike the fiscal year 2000 budget resolution, H.Con.Res.290 does not separate education from training, employment, and Social Services.

"We're disappointed in the amount of increase for Title I, but we're very pleased with the increase in IDEA," said Bruce Hunter, AASA's director of public policy.

AASA's Federal Policy Legislation Committee voted to commend the budget committee for the increase in IDEA funding, Hunter said.

H.Con.Res.290 also states that Congress should provide schools with the flexibility to use any new monies that become available to fund IDEA. "The high cost of educating children with disabilities and the federal government’s failure to fully meet its obligation under the Individuals with Disabilities Education Act stretches limited state and local education funds, creating difficulty in providing a quality education to all students, including children with disabilities," the measure said.

The measure also calls for Congress, the U.S. Department of Education and local schools to work together to ensure that at least 95 percent of all federal appropriations are "spent for our children in their classrooms."

H.Con.Res.290 is a non-binding blueprint that sets the broad parameters for tax and spending bills. The compromise between House and Senate Republican leaders was approved 211 to 207. Because it is not law, the measure is not subject to veto. 

Natalie Carter Holmes, Editor

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