Elementary School Counseling Program Gets Funding Boost!

As one of its last official acts, the 106^th Congress finally passed on December 15, 2000, a consolidated appropriations bill for FY 2001 (H.R. 4577). The bill includes a $10 million increase in the Elementary School Counseling Demonstration Program -- to $30 million for the current fiscal year (which officially began on October 1, 2000). Many thanks to all of you who worked so long and so hard to make this happen.

As of today, the U.S. Department of Education has not made any decisions on how they will proceed with this year's grant program. Theoretically, the $30 million would permit all current grantees to receive a second year of funding and provide an opportunity for approximately 20 additional schools to receive new grants. The Department could choose to re-open the program for new applications or could simply choose to fund the next highest ranking applications from last year's competition. You may recall that close to 600 applications were received and only 58 awards could be made. No decision is expected until next year. If new applications are solicited, applications could be available sometime in May. The program is administered by the Department's Office of Safe and Drug-Free Schools.

SAFE SCHOOLS/HEALTHY STUDENTS

Another grant program that can be used to fund school social work services also got an increase -- the Safe Schools/Healthy Students program. The consolidated appropriations bill provides $222 million for the program -- $75 million more than last year. Information on both these grant programs and others can be found on the Safe and Drug-Free Schools website -- www.ed.gov/offices/OESE/SDFS/grants.html.

OVERALL FUNDING

Overall, funding for education totals $44.5 billion -- an increase of $6.5 billion or 18 percent over FY 2000 -- the largest annual increase in the history of the Department.

Other specific appropriations of particular interest include:

• Title I Grants -- $8.6 billion - $600 million or 8 percent over last year.
• Special Education -- $7.4 billion - $1.4 billion or 23 percent over 2000, increasing the federal contribution from 12 percent in 2000 to 15 percent in 2001 -- the highest in the history of IDEA.
• 21^st Century Community Learning Centers -- $846 million - $393 more than 2000, nearly doubling the program.

Presumptive Eligibility. Schools have been added to the list of entities qualified to make Medicaid presumptive eligibility determinations for children. Under Medicaid presumptive eligibility rules, States have been allowed to temporarily enroll children whose family income appears to be below Medicaid income standards, until a final formal determination of eligibility is made. In addition to elementary and secondary schools, other new qualified entities include all agencies that determine eligibility for Medicaid or the State Children's Health Insurance program; organizations providing emergency food and shelter under the Stewart B. McKinney Homeless Assistance Program; agencies that determine eligibility for assistance under any federal public or assisted housing program; and other entities the State determines, if approved by the Secretary of HHS.

Administrative Claiming. HCFA has proposed guidelines regarding the administrative claims process for schools requesting reimbursement for Medicaid related services. The bill expresses concern that these guidelines are being developed without adequate input from interested parties and will significantly alter the administrative claiming program making it more difficult for schools to provide services to poor and disabled children. HCFA is expected to consult with school practitioners and other groups to draft guidance for Medicaid allowable costs under the administrative claiming section of the School Based Services program. HCFA is also urged to process pending State applications and to continue to review reimbursement procedures until new guidelines are published. The Administrator is also expected to be prepared to testify on this issue at the fiscal year 2002 appropriations hearing.