1. (a)

   1. (1) Eligible students with disabilities under the Individuals with Disabilities Education Act who are receiving special education and related services in an approved school-based day treatment program in accordance with their IEPs may be counted on the December 1 child count to generate federal special education funds.
   2. (2) The student or students must have an IEP and be receiving special education and related services on December 1.

2. (b)

   1. (1) Federal funds that a district receives under Part B of the Individuals with Disabilities Education Act may be used to implement any or all of the day treatment program.
   2. (2) This includes not only the district’s child count funds, but also any sliver funds under Part B that a district may receive.

3. (c)

   1. (1) State funding for education is based on an amount per student referred to as the base local revenue per student.
   2. (2) These dollars incorporate previous funding for special education.
   3. (3) Thus, for a district to establish a day treatment program, it will need to restructure its state/local expenditures for special education and related services.

4. (d)

   1. (1) In accordance with 6 CAR § 130-1706, districts may include a limited number of students who are not eligible under the Individuals with Disabilities Education Act, but who have been properly diagnosed with emotional disturbance and who need school-based day treatment services.
   2. (2) These students may not be counted in the December 1 child count for federal funds.

5. (e)

   1. (1) A school district that is enrolled as a Medicaid provider for speech therapy, physical therapy, occupational therapy, and targeted case management may bill Medicaid for the provision of these services to Medicaid-eligible students who are in the day treatment program.
   2. (2) If the district chooses not to enroll as the provider, it may seek an enrolled provider for these services, which would then bill Medicaid.

6. (f)

   1. (1) The mental health providers working with the district in the provision of services in the day treatment program may be eligible to bill Medicaid for certain mental health services.
   2. (2) The district and the mental health provider should work together to determine the extent of billing that is available.

7. (g)

   1. (1) In some cases, special education and related services provided to a student in the day treatment program may be so costly as to qualify for reimbursement under the category of “catastrophic occurrences”.
   2. (2) See 6 CAR § 130-2201 et seq., for details.

Codification Notes: The Individuals with Disabilities Education Act is codified at 20 U.S.C. § 1400 et seq. "IEP" means individualized education program.