Hutto ISD will not seek reimbursement for health and medical services provided to students through a federal program, as the district looks for new ways to reduce expenditures in its budget.
The move comes as Chief Financial Officer Caleb Steed highlights how little the district receives in return on the investment of hiring a firm to bill the state for providing services through the School Health and Related Services program.
What you need to know
The district's board of trustees voted not to execute a contract with a third-party venue in a Feb. 26 board meeting.
The district will continue to provide services to students, Steed said, but it will not pursue the expense of hiring a firm to bill for reimbursement.
What they're saying
Steed said that in previous years the district could receive up to $2 million in reimbursement through the SHARS program. However, in the last financial year, he said that ROI dropped to just $200,000.
"Our budgeted goal was try to get back to $300,000—nowhere near the million that we should be getting to have an effective ROI," Steed said.
How we got here
In recent years, the SHARS program has caused some volatility in budget planning for Texas school districts. After losing a yearslong appeal, the Texas Health and Human Services Commission notified districts in 2024 that their funding through this program would be reduced as a result.
In the 2021-22 financial year, Texas schools had an over $300 million retroactive reduction in funding for services provided to students. The audit and subsequent reduction in funds were due to a coding error for services provided, a representative of HHSC said at the time.
About the program
The SHARS program allows schools to seek reimbursement for services provided to students eligible for Medicaid with the consent of their guardians. According to the Texas Education Agency, these services include:
- Audiology services
- Counseling
- Nursing services
- Occupational therapy
- Personal care services
- Physical therapy
- Physician services
- Psychological services, including assessments
- Speech therapy
- Specialized transportation as defined by the Health and Human Services Commission
