NEW YORK — City public schools lost $356 million during the past three years in federal Medicaid payments for special education services because city and state officials failed to properly apply for reimbursement, the Daily News has learned.
“Red tape and bureaucracy should not stand in the way of (the city) being reimbursed for the vast array of services provided,” city Controller Scott Stringer said in a report obtained by The News.
As a result, between 2012 and this year, the city Department of Education kept shifting funds originally slated for books, supplies and other general costs to pay for those special education services, Stringer said.
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