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Monday, October 1, 2012

Sequestration affect on IDEA funding




From an e-mail from the Utah State Office of education on the affect of sequestration on Special Ed funding.

Latest news on the sequestration:

·        The White House issued a notice on Friday that companies working under government contracts don’t have to provide notice of potential layoff because the sequestration is still “uncertain”. Normally, this notice is required 60 days prior to layoff, which coincidentally is right before the election. http://www.whitehouse.gov/sites/default/files/omb/memoranda/2012/m-12-19.pdf

·        The White House also issued a report last week that describes in more detail the cuts for each department (see attached). This report lists estimated percentages, but does not have any information about how each specific federal agency will handle the assigned cuts. For us, this means that we don’t know how much of the cut will be taken at OSEP and how much will be passed on to States.  
      
     We also don’t know if this cut will change the minimum and maximum amounts that are included in the IDEA formula. This report was prepared by the current administration and includes a fair amount of finger pointing. 
      
     You’ll find the Department of Education on page 60, and OSERS on page 61. The reduction for OSEP is estimated at 8,.2%, or just over $1 billion. There is also a $2 million reduction to the American Printing House for the Blind, which provides specialized instructional materials for Utah students with visual impairment.

·        Both parties agree that the sequestration poses a threat to national economic growth. They are unable to agree on how to resolve the sequestration (new taxes vs program cuts). Because of their inability to work together, sequestration is still a very real possibility.

·        There is still no move to change or adjust the expectation that LEAs meet the MOE and Excess Costs requirements for state and local funds.