An Update on the Provision of Educationally-Related

1
Transition of the AB 3632 Program

• An Update on the Provision of Educationally-Relate
  d
• Mental Health Services

2
History of the AB 3632 Program
3
Federal IDEA

• Federal Individuals with Disabilities Education
  Act (IDEA) any state receiving federal
  educational funding must ensure that all students
  receive a free and appropriate public education
  (FAPE).
• Students with disabilities are entitled to
  receive all services necessary to allow them to
  benefit from public education.
• For students with mental-health-related
  disabilities, the services to which they are
  entitled often include educationally-related
  mental health services.

4
AB 3632

• Prior to 1984, school districts were responsible
  for provision of all services under the IDEA,
  including mental health services.
• In 1984, the state legislature enacted AB 3632,
  which mandated that counties provide IDEA-related
  mental health services to students.
• Because this was a new and unfunded mandate, a
  county filed a test claim with the Commission
  on State Mandates.
• The Commission held that counties were entitled
  reimbursement by the State for any costs incurred
  in providing these services.

5
AB 3632 (contd)

• Over the past decade, the state consistently
  failed to comply with its obligation to reimburse
  counties for costs incurred in complying with
  this and other state mandates.
• In 2004, California voters passed Proposition 1A,
  which amended the state constitution to require
  that the state either fully reimburse local
  governments for mandated costs, or suspend the
  mandate.
• Since the passage of Prop 1A, the state has
  reimbursed local governments for all mandated
  programs except the AB 3632 program.
• For this program alone, the State owes counties
  over 400 million for past years mandate claims.

6
Suspension of the AB 3632 Mandate

• In the FY 2010-11 state budget, the Legislature
  appropriated approximately 133 million to pay
  counties for costs related to the AB 3632
  program.
• On October 8, 2010, then-Governor Schwarzenegger
  vetoed this appropriation and declared the AB
  3632 mandate suspended.
• Several lawsuits resulted from this veto.

7
AB 3632 Lawsuits

• Counties sued the state seeking a declaratory
  judgment that the mandate had been suspended by
  the states the failure to appropriate funds to
  reimburse counties. The counties prevailed.
• The California School Boards Association also
  filed a lawsuit against the state challenging the
  Governors authority to suspend the AB 3632
  mandate. The state prevailed.
• The bottom line Both courts held that the
  mandate pursuant to which counties were required
  to provide educationally-related mental health
  services had been suspended.

8
Permanent Repeal of AB 3632

• Through the FY 2011-12 State budget, the
  Legislature permanently repealed the law
  mandating that counties provide mental health
  services to special education students.
• Local Education Agencies are now responsible for
  provision of and payment for mental health and
  residential services provided under the IDEA.

9
Legislative Action Related to AB 3632

• AB 114 permanently repealed the AB 3632 mandate
• Existing federal and remaining state laws make
  LEAs responsible for complying with the federal
  IDEA.
• SB 87 allocated 98.6 M in one-time MHSA-funds
  (from AB 100) to counties to provide IDEA-related
  mental health services in fiscal year 2011-2012.
• LEAs must contract with counties to access these
  funds.

10
Legislative Action Related to AB 3632

• SB 87 provides LEAs with federal IDEA funds and
  Prop 98 state funds to provide mental health and
  out-of-home residential services for emotionally
  disturbed pupils.
• SB 87 allocates 800,000 in federal IDEA funds to
  California Department of Education to assist
  SELPAs/LEAs with transitional activities
• Minimize disruption, identify best practices,
  strengthen linkages between mental health and
  education, create work groups on accountability
  and outcomes, involve public stakeholder process.

11
What Does this Mean for Counties?

• The permanent repeal of the AB 3632 mandate has
  removed one of counties major annual funding
  struggles with the State.
• Counties are still owed over 400 million for
  past years mandate claims for this program
  alone.
• Counties must work with districts to transition
  provision of educationally-related mental health
  services to special education students.

12
What Does this Mean for Counties?

• Many counties will likely continue to provide
  these services under contracts with school
  districts because
• Counties possess necessary expertise and
  infrastructure to provide these services.
• Counties can draw down Medi-Cal and other funds
  to offset the costs associated with provision of
  these services.

13
What Does this Mean for Counties?

• County mental health departments continue to be
  responsible for providing mental health services
  to EPSDT (Medi-Cal) beneficiaries.
• County mental health departments will receive a
  share of MHSA funds in 2011-12 on a one-time
  basis, and schools may contract with counties to
  use funds to provide educationally-related mental
  health services.
• Any additional role a county mental health
  department plays in providing educationally-relate
  d mental health services will be undertaken
  pursuant to contractual agreements with local
  school districts.

14
Students Rights to Services

• Students rights under the IDEA have not changed.
  Students still have the right to receive
  educationally-related mental health services
  where such services are included in their
  Individualized Education Plan (IEP).
• The California Department of Education and Local
  Education Agencies are responsible for ensuring
  provision of all services to which students are
  entitled under the IDEA.
• LEAs can work with county mental health
  departments to provide IEP-related services to
  students. Alternatively, they can provide the
  services themselves, or contract with other
  mental health providers.

15
What is happening in Santa Clara County?

• Fiscal Year 2010-2011
• In the wake of the veto, many counties
  unilaterally terminated services. We continued
  providing them.
• Now that it is clear school districts are
  responsible for reimbursing counties for costs
  incurred providing these services during FY
  10-11, the MHD is in the process of billing
  school districts for these costs.
• Before billing districts, the County offsets its
  costs by any available revenues (e.g. Medi-Cal
  reimbursements).
• Funds the SELPAs received from the state under SB
  70 will cover the majority of the Countys costs
  for FY 10-11.

16
What is happening in Santa Clara County?

• Fiscal Year 2011-2012
• The MHD entered into a Master Agreement with all
  but one school district in the County under which
  districts can refer students to the MHD for
  provision of IEP-related mental health services.
• We are hopeful that the AB 100 funds will cover
  all unreimbursed expenses for FY 11-12.
• Future years
• The MHD hopes to collaborate with school
  districts to create a system that works well for
  all parties involved.
• Our shared goal is that all students are provided
  with high-quality, cost-effective
  educationally-related mental health services.