POLICY LETTER: November 10, 2003 to Harmony Community School Executive Director David Nordyke

Dated November 10, 2003Mr. David NordykeExecutive DirectorHarmony Community School 1580 Summit RoadCincinnati, Ohio 45237Dear Mr. Nordyke:This is in response to your letter to the Office of Special Education Programs (OSEP) requesting a review of the Ohio Department of Education's (ODE's) policies and interpretation of Ohio law regarding allocation of State special education funds for community schools (Section 3314.08, Ohio Revised Code). In your letter you indicate that you disagree with the ODE's interpretation of the formula and allege that this interpretation does not permit a student with disabilities to receive full benefit of his or her basic aid amount and receive full benefit from the additional monies needed to fulfill the requirements of the [individualized education program, or] IEP; you also allege that the State's special education funding mechanism discourages the identification of students with disabilities in that the funding mechanism appears to penalize community schools for identifying such students. Based upon telephone conversations with Dale King of our office, it also is our understanding that your concerns are about State special education funds allocated to the Harmony Community School (a public charter school), and not the allocation of federal funds provided under Part B of the Individuals with Disabilities Education Act (IDEA).OSEP is aware of the Ohio Supreme Court's decisions in DeRolph v. State of Ohio, that impact the State's methods of funding public education. OSEP also is mindful of the fiscal difficulties currently facing States and local educational agencies (LEAs) in ensuring the education of all children, including children with disabilities. However, as long as the provisions of the IDEA are met, issues regarding a State's public school funding formula, including State funding of special education and related services, are matters to be resolved at the State level.We note that in OSEP's March 2001 report of its 1999 monitoring of the ODE, OSEP instructed ODE to review its funding mechanism to determine whether it results in placements that violate the requirement for the provision of services in the least restrictive environment (LRE) and to ensure that policies and procedures are developed to ensure compliance with the requirements of 34 CFR 300.550-556. Ohio's current special education funding formula indicates that State special education funds are distributed based on type of disability and not placement. Further, the State is subject to the requirements of, and has provided an assurance under, the maintenance of effort provisions of 34 CFR 300.154. The State is also responsible for ensuring that the requirements of 34 CFR 300.231, relating to maintenance of effort by LEAs, are met. It is our understanding thatTelephone: 216-522-4970FAX: 216-522-2573; TDD: 216-522-4944Email: OCR_Cleveland@ed.gov We hope this provides you with helpful information. If we can be of further assistance please do not hesitate to contact Mr. Dale King of the Office of Special Education Programs at (202) 260-1156.Sincerely,/s/ Patricia J. Guard forStephanie Smith LeeDirectorOffice of Special Education Programscc:Mike Armstrong, Director, Office of Exceptional ChildrenJohn Mills, Director, Finance and Management Services Page PAGE 3 Mr. David Nordyke