Districts who submitted a SHARS cost report recently received FFY 2022 cost report settlements. HHSC is reporting districts will have 30 days to respond. TASBO is reporting a possible 50% reduction in funding statewide due to HHSC exhausting its federal appeal options on the findings that the random moment time study (RMTS) were not coded correctly; HHSC has now re-coded certain RMTS moments and recalculated the statewide percentage to determine the fiscal impact for the FFY 2022 cost reports. Rep. James Frank, Chair of the Human Services Committee, sent out a letter last week and stated that Texas ISDs “were expending Medicaid dollars towards services that were educational in nature, not medical, and therefore are not reimbursable.” Frank continues that as a result schools will be left with a large deficit for certain SHARS services. This financial shortfall will continue according to Frank who notes in his letter that, “the federal government is NOT going to continue paying as they have in the past.”
