The Arc of Texas Provides Input on School Health and Related Services Funding

Verbal Testimony on HB 500

Good afternoon, Chair Bonnen and members of the committee. My name is Sabrina Gonzalez Saucedo, and I am the Director of Public Policy and Advocacy for The Arc of Texas. Thank you for the opportunity to testify in support of HB 500.

My comments today will be specific to the inclusion of funding for the School Health and Related Services, or SHARS, program in the bill. As this committee has previously discussed, SHARS is a Medicaid program that helps school districts cover the cost of providing health and related services—like speech therapy, nursing services and more—to students with disabilities currently eligible for Medicaid. Recently, due to federal audit findings, Texas school districts have faced significant recoupments, or “clawbacks,” of previously received SHARS reimbursements, creating unexpected financial strain.

We deeply appreciate the inclusion of $934.5 million in HB 500 to help mitigate this burden. This funding will provide critical relief to districts struggling with these unexpected costs and ensure students continue receiving the services they need.

To strengthen the language currently in HB 500, we recommend providing additional guidance or guardrails on how TEA is to distribute these funds. At a minimum, we suggest specifying that TEA collaborate with HHSC in developing its plan for the distribution of these funds, given that SHARS is jointly administered by both agencies. This coordination will help ensure the funding is allocated effectively and reaches the districts most impacted.

Thank you again for your time and commitment to supporting students with disabilities. I’m happy to answer any questions.