Tex. Educ. Agency v. U.S. Dep't of Educ.

908 F.3d 127
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 7, 2018
DocketNo. 18-60500
StatusPublished
Cited by8 cases

This text of 908 F.3d 127 (Tex. Educ. Agency v. U.S. Dep't of Educ.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tex. Educ. Agency v. U.S. Dep't of Educ., 908 F.3d 127 (5th Cir. 2018).

Opinion

JERRY E. SMITH, Circuit Judge:

*130Under the Individuals with Disabilities Education Act ("IDEA"), a state may receive federal funding for special education, provided it complies with statutory requirements. One such condition-known as the "maintenance of state financial support" ("MFS") clause-prohibits a state from reducing the amount of state financial support made available for special education and related services below the amount for the previous fiscal year. See 20 U.S.C. § 1412(a)(18)(A). If the state reduces the amount of its financial support, the Secretary of Education may withhold federal funding by a corresponding amount. See id. § 1412(a)(18)(B).

In fiscal year 2012, Texas made available roughly $33.3 million less for special education and related services than it did during fiscal year 2011. Accordingly, the Department of Education issued a proposed determination that Texas was ineligible for $33.3 million of future grants because of the shortfall in both aggregate and per capita state funding. The state asserted that it had complied with the MFS requirement because funding under a weighted-student model had remained constant. Texas further maintained that the MFS provision violated the Constitution's Spending Clause in that it failed to provide clear notice that a state could not decrease its aggregate or per capita appropriations. The Secretary ultimately rejected both arguments. Because the weighted-student model contravenes the plain meaning of the MFS clause, we deny the state's petition for review.

I.

Part B of the IDEA, id. § 1400 et seq. , authorizes the Secretary to extend federal grants to assist states in providing special education and related services for children with disabilities. "Congress enacted IDEA in 1970 to ensure that 'all children with disabilities are provided a free appropriate public education which emphasizes special education and related services designed to meet their unique needs [and] to assure that the rights of [such] children and their parents or guardians are protected.' "1

To qualify for these grants, a state must submit a "plan that provides assurances to the Secretary that the State has in effect policies and procedures to ensure that the State meets each" of the twenty-five stipulated conditions. Id. § 1412(a). Among these is the MFS clause, which Congress added in the 1997 Amendments.2 The MFS requirement forbids a state from "reduc[ing] the amount of State financial support for special education and related services for children with disabilities, or otherwise made available because of the excess costs of educating those children, below the amount of that support for the preceding fiscal year." Id. § 1412(a)(18)(A). See also 34 C.F.R. § 300.163. If a state does not comply, then the Secretary "shall reduce the allocation of funds" to the state "by the same amount by which the State fails to meet the requirement." 20 U.S.C. § 1412(a)(18)(B). Alternatively, the Secretary may waive the MFS condition if she *131finds that a state provided clear and convincing evidence that all children with disabilities have available to them a free appropriate public education. See id. § 1412(a)(18)(C)(ii) ; see also 34 C.F.R. § 300.164.

In its 2013 application for IDEA Part B funds, Texas reported a shortfall of $377,284,114 between the state funding appropriated for special education in fiscal years 2012 and 2011. Texas noted that the reduction had resulted from decreases in enrollment and in the level of services required by individual children with disabilities. The Department warned Texas that it was at risk of having its funds reduced the following fiscal year and informed Texas it could satisfy the MFS requirement by showing that the total amount of state funding was no less than that of the previous fiscal year (aggregate method) or that the funding per individual child was at least equal to the previous fiscal year's (per capita method). Applying the per capita method, the Department determined that Texas's shortfall was only $33,302,428. The Department notified Texas of the opportunity to seek a waiver of the MFS provision, but the state did not do so. Consequently, the Department issued a proposed determination that Texas was ineligible for the corresponding $33.3 million in future grants.

In response, Texas maintained that it had fully complied with the MFS clause through its faithful application of the weighted-student model. Under that approach, an "individualized education program" team assesses the special education needs of each student with a disability. Funds are then allocated according to the number of hours and the types of special education services received by a full-time equivalent student in average daily attendance. The amount of state funding can therefore fluctuate yearly depending on the number of enrolled students and their unique instructional arrangements. For instance, if a student requires daily tutoring sessions in one year but only biweekly sessions in another, his school would receive less funding to account for the change in special education needs.

The weighted-student model has existed in its current form since 1995. Because Texas did not alter its core statutory mechanism for funding special education in 2012, the state asserted that it had not reduced the funds made available for disabled children. According to Texas, what had changed in 2012 was not the support for special education, but rather the special education needs of children with disabilities. Finally, Texas posited that the MFS requirement exceeded Congress's spending power by failing to provide clear notice that reductions in aggregate and per capita funding were forbidden.

On May 23, 2018, the administrative law judge ("ALJ") determined that the weighted-student model contradicted the plain language of the MFS provision, which required states to maintain the same level of allocations from year to year.

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908 F.3d 127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tex-educ-agency-v-us-dept-of-educ-ca5-2018.