Download AB 3632 Presentation by Deputy County counsel, Greta Hansen

Transition of the AB 3632 Program
An Update on the Provision of
Educationally-Related
Mental Health Services
History of the AB 3632 Program
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.
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.
AB 3632 (cont’d)




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.
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.
AB 3632 Lawsuits



Counties sued the state seeking a declaratory judgment
that the mandate had been suspended by the state’s
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 Governor’s
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.
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.
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.
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.
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.
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.
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-related mental health
services will be undertaken pursuant to contractual
agreements with local school districts.
Students’ Rights to Services



Students’ rights under the IDEA have not changed.
Students still have the right to receive educationallyrelated 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.
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 County’s costs for FY 10-11.

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 highquality, cost-effective educationally-related mental health
services.
