Medicaid rule change increases school funding

A state expert on school finance breathed a sigh of relief Tuesday afternoon.

Because of the state’s budget crisis, Kansas school districts have cut $300 million in the last year, leading to layoffs and cuts to services and programs.

And in the past week, the Kansas State Department of Education had warned school districts about another potential cut of $8.5 million in statewide special education funding due to changes in Medicaid reimbursements.

But apparently those changes will mean an increase — not a decrease — in funding.

After receiving more information from the Kansas Health Policy Authority, a state education official said Tuesday evening that the changes appear to give schools a net overall increase of $5 million to $10 million in funds.

“I don’t think this is going to be an issue at all,” said Dale Dennis, Kansas’ deputy education commissioner.

At issue is Medicaid funding for attendant care services, or ACS, which is assistance for students who have a physical disability.

On Tuesday, the KHPA — which coordinates the statewide health policy agenda — said in a statement that federal officials changed how they interpreted regulations for attendant care services.

But the KHPA statement also said overall changes to Medicaid will still include “a net, overall increase in funding” to schools.

Had the regulation change brought a decrease in funding, Lawrence school officials estimated the district could have lost $800,000.