In a recent meeting of the Texas Education Agency (TEA) and the Health and Human Services Commission (HHSC), officials discussed significant changes in the state's Special Health and Related Services (SHARS) program, which provides Medicaid reimbursement for health-related services in schools. The meeting highlighted a dramatic increase in the number of students identified as needing special education services, with a 72% rise since the 2014-2015 school year, now totaling approximately 775,000 students.

Kristen McGuire from TEA noted that while the overall student population has grown by only 0.24% between the 2022-2023 and 2023-2024 school years, the identification of students requiring special education services surged by over 10%. This increase raises concerns about funding and resource allocation, particularly as many school districts reportedly do not reinvest SHARS reimbursements back into special education services.

The meeting also addressed the implications of a federal audit that has led to significant changes in SHARS funding. Trey Wood, CFO of HHSC, explained that the audit findings from 2013, which concluded in 2023, determined that certain services previously deemed reimbursable were classified as educational rather than medical. This reclassification has resulted in an estimated loss of $532 million in federal funds for Texas school districts, prompting concerns about the sustainability of the SHARS program.

Ricardo Garcia from HHSC outlined upcoming policy changes aimed at ensuring compliance with federal requirements, including stricter documentation for personal care services and the introduction of new provider qualifications. These changes, effective October 1, 2024, are intended to align Texas with federal standards but have raised alarms among educators about the increased administrative burden on schools.

Carlyn Keller from the Texas Association of School Boards expressed frustration over the lack of communication regarding these changes, emphasizing that many districts feel blindsided by the rapid implementation of new rules without adequate preparation or support. She highlighted the emotional and financial toll on schools, with some districts considering withdrawing from the SHARS program altogether due to uncertainty about funding.

The meeting concluded with calls for improved collaboration and transparency between state agencies and school districts to better navigate the complexities of special education funding and ensure that the needs of students with disabilities are met effectively. As Texas grapples with these challenges, the future of the SHARS program and its impact on special education services remains a critical concern for educators and policymakers alike.