By GARRY RAYNO, InDepthNH.org

CONCORD - Services for special education and disabled students in the Education Freedom Account program do not always connect directly to each student's specific needs.

"We do not audit that on a case by case basis," Matt Southerton, Director of Policy and Compliance for the Children's Scholarship Fund NH, which runs the program for the state, told the Education Freedom Account Oversight Committee Monday.

This school year, 890 of the 10,510 students in the program received state differential aid of $2,145 per student or nearly $2 million because they qualified for special education or disability services on top of the state adequacy aid grant of $4,625 each EFA student receives.

Committee chair Rep. Rick Ladd, R-Haverhill, raised concerns about both the qualification process for extra state aid and whether administrators track student progress the way public schools do with Individualized Education Plans.

He noted that students receive evaluations every year and a formal reevaluation every three years.

Southerton said parents in the EFA program receive unrestricted funds. He explained that staff identify the student, confirm service providers meet compliance standards, and verify that funds cover allowable services.

"We do not investigate on a case by case basis whether the actual service ties back to the student's disability," he said. "We are not in a position to determine whether or not it aligns with the requirements of an IEP."

Special education students who exit public schools for the EFA program give up all rights to special education services mandated by federal and state law.

To qualify for extra funds in the EFA program, a student may receive a formal evaluation from their school district or obtain certification of a disability from any medical provider in any state.

Ladd pointed out that states certify physicians differently and no specialist is required to confirm the disability.

"This gives me a heartache," he said. Somewhere in this country someone decides that a person in New Hampshire has an eligible disability, Ladd added.

There are 13 categories for disabilities in administrative rules, he noted, and he asked whether services come from medical professionals with proper credentials, noting that physical therapy requires a provider with a PhD.

"The IEP is matched to the student's goals and a contract document is signed with a service provider," Ladd said.

He expressed concern that no statute covers disabilities and that they appear only in rules.

Mark Manganiello, Finance Bureau Administrator for the Department of Education, said public schools follow a set process to qualify for special education services while the EFA program offers another pathway.

A spectrum of needs may require further study or varying levels of services, reviews, and oversight, Manganiello said.

The state Board of Education faced difficulty requiring school districts to complete the formal process for students who will not attend public schools, he said.

Rep. Peggy Balboni, D-Rye, noted an alternative process exists for independent evaluations but that option is not applied here.

This approach exceeds a simple disability designation because public school students with disabilities often do not receive special education services, she said.

"There is no money associated with it," she said. "There has to be a way to tighten this up a little bit," especially given rising special education costs.

Ladd said a real issue exists regarding the kinds of services students receive, not only in the EFA program but also when the state sends funds to school districts for special education where districts choose the services provided.

Ladd asked Southerton how the CSF decides which students continue from year to year.

Southerton said students must receive annual disability certification and submit medical data.

"Here we are accepting learning disability conditions without any kind of formality that the disability is being treated," Balboni said. "The parents waive all rights for special education, but they still get all the funding."

Ladd asked Southerton to supply the committee with the number of students in each of the 13 disability categories in the EFA program.

The committee also reviewed assessment options parents may choose for EFA students to demonstrate readiness for the next grade, including statewide tests, known national tests such as the California achievement test, or a certified teacher review of a portfolio.

Southerton said only 10 students in the last school year out of 5,765 took the state assessment tests.

He said 2,793 students submitted portfolios and 2,359 took 17 different national tests, with the California Achievement Test the most popular at 1,127 users.

Another topic was the percentage of funds the CSF keeps for administration, set at 10 percent of grants to parents.

Southerton said last year's cost came in just under 8 percent and the organization returns money to parents at year end if administrative costs fall below 10 percent.

Concerns also surfaced about recent efforts to open career and technical school programs to EFA students.

Southerton said the courses have always been open to EFA students but billing reached $10,000 to $11,000 per student, making participation impractical, so several bills passed this year to improve affordability and place EFA students on equal footing with those in sending schools.

Ladd noted the situation remains complicated because entry into career and technical schools is competitive and often requires multi-year attendance, limiting access for others.

Others observed that arrangements differ by district, with some charging EFA students and others not.

Ladd said the committee will revisit the issue but legislation may be needed.

The oversight committee will meet again after the summer break during July and August.

Garry Rayno may be reached at garry.rayno@yahoo.com.