Illinois ex rel. Illinois Department of Public Aid v. Bowen

808 F.2d 571, 36 Educ. L. Rep. 1128
CourtCourt of Appeals for the Seventh Circuit
DecidedDecember 17, 1986
DocketNo. 85-2818
StatusPublished
Cited by1 cases

This text of 808 F.2d 571 (Illinois ex rel. Illinois Department of Public Aid v. Bowen) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois ex rel. Illinois Department of Public Aid v. Bowen, 808 F.2d 571, 36 Educ. L. Rep. 1128 (7th Cir. 1986).

Opinion

COFFEY, Circuit Judge.

The plaintiff-appellant, the State of Illinois (“plaintiff” or “Illinois”), appeals from the district court’s decision granting summary judgment in favor of the defendant, Otis R. Bowen,1 Secretary of the United States Department of Health and Human Services (“HHS”), whose department denied the plaintiff reimbursement for monies expended in the plaintiff’s special education programs under Title XX of the Social Security Act, 42 U.S.C. §§ 1397-1397Í. We affirm.

I.

The facts of this case are not in dispute. The State of Illinois has, at least since 1963, provided special educational services to eligible handicapped children. Under the direction of the Illinois Office of Education (“IOE”), local school districts are directed to identify those children in need of special education. Although other state [573]*573agencies may subsequently become involved in the treatment and education of the handicapped students, the IOE has the overall supervisory responsibility for the educational programs offered by any state agency. During the period of time relevant to this action, the Illinois Department of Children and Family Services (“DCFS”) operated three residential schools for the education of handicapped children.2

The State of Illinois filed claims for participation under Title XX for educational services ($6,311,908) and for room and board ($2,792,804) in connection with the operation of the three residential schools during the period from the Title XX program’s inception October 1, 1975 through March 30, 1980. After an audit was performed by the HHS for this time period, an HHS regional administrator initially disallowed all the claimed expenses. After the HHS Grant Appeals Board (“Board”)3 affirmed the disallowance on July 29, 1983, the decision became the Secretary’s.4 The district court granted the Secretary’s motion for summary judgment and dismissed the action with prejudice upon the State’s request of judicial review of the Secretary’s disallowance. State of Illinois v. Heckler, 616 F.Supp. 620 (N.D.Ill.1985).

The State of Illinois raises two primary issues on appeal: (1) whether the educational program costs claims for the three residential schools were proper expenditures under Title XX arguing that the programs for the handicapped students were neither “generally available” in the local school districts nor operated by a state educational agency; and (2) whether the room and board expenses were proper claims under Title XX since the education of the handicapped students at the three schools constituted a “new placement” every academic year.5

II.

A motion for summary judgment should be granted only when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). An appellate court should reverse a grant of summary judgment upon the showing of a dispute over a material fact, however the [574]*574plaintiff must “allude to specific facts which raise a genuine issue for trial.” Linhart v. Glatfelter, 771 F.2d 1004, 1008 (7th Cir.1985). In reviewing a grant of summary judgment, an appellate court must view the record and the inferences drawn therefrom in the light most favorable to the party opposing the motion. United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962).

a. The disallowance of educational program costs.

Title XX of the Social Security Act (“Act”), 42 U.S.C. §§ 1397-1397Í, as amended and as pertinent during the audit period, provided for federal payments to the states for certain social services. We believe the district court in analyzing the legislative purpose of the Act gave a proper assessment of Congressional intent:

“When Congress passed Title XX it clearly intended to supplement, rather than to replace, state funding of social services. Act § 1397b required states receiving Title XX funds to continue funding social services at prior levels. Title XX was structured to allow states to extend their services further than before, and Act § 1397a reads like a congressional judgment that its supplemental resources were better spent on services in nonexistent or limited state supply than on services already generally available.”

616 F.Supp. at 624.

The parties agree that § 1397a(a)(l) of the Social Security Act, which was applicable during the relevant audit period, would ordinarily provide Title XX funding for the $6,311,908 in expenses in educational costs claimed by the State of Illinois. Section 1397a(a)(l) provided Title XX funding for a variety of services including:

services designed to meet the special needs of children, ... [and] the physically handicapped.

The then applicable § 1397a(a)(10) compelled the Secretary to disallow reimbursement for the claimed expenses:

No payment may be made under this section with respect to any expenditure for the provision of any educational service which the State makes generally available to its residents without cost and without regard to their income.

(Emphasis added). During the time period in question, the Secretary’s corresponding regulation stated (45 C.F.R. § 228.43):6

FFP [Federal Financial Participation] is not available for any educational service made generally available through any State or local educational agency to residents of the state without cost and without regard to their income. To the extent a fee is imposed on any resident, FFP is available only for such fee.

(Emphasis added).

Whether or not the Illinois Department of Public Aid is entitled to reimbursement depends on the interpretation given to the phrase “generally available.” Illinois argues that the Secretary misinterpreted the Social Security Act and its implementing regulations in construing what constitutes “generally available.” The language of § 1397a(a)(10) of the Social Security Act provides that funding will not be available for “any educational service which the State makes generally available to its residents.” The United States Supreme Court has stated that absent a clear indication of legislative intent to the contrary, the language of the statute in question controls its construction. Ford Motor Credit Co. v. Cenance, 452 U.S. 155, 158 n. 3, 101 S.Ct. 2239, 2241 n. 3, 68 L.Ed.2d 744 (1981). See also 2A Sutherland Statutory Construction Secs. 45.02, 46.01 (4th ed. 1984).

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Related

State of Illinois v. Bowen
808 F.2d 571 (Seventh Circuit, 1986)

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Bluebook (online)
808 F.2d 571, 36 Educ. L. Rep. 1128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-ex-rel-illinois-department-of-public-aid-v-bowen-ca7-1986.