Over $500 Million In NYC School Funds Left Unclaimed

Jan 3, 2012   //   by Chad   //   Latest News  //  No Comments

NEW YORK (CBSNewYork) — Hundreds of millions of dollars set aside to help fund city schools is simply sitting on the table unclaimed. School administrators say they don’t have the manpower to fill out the paperwork necessary to get it.

City school administrators are scrambling to explain why they haven’t bothered to claim more than $500 million they’re entitled to.

“This is sheer incompetence, it is disgusting and every parent in this city should be outraged,” Michael Mulgrew, president of the United Federation of Teachers, said.

The Department of Education hasn’t filed Medicaid reimbursement claims for services like physical, occupational and speech therapy since 2006.

As a result, the department has missed out on more than $500 million that taxpayers have been forced to foot the bill for.

The DOE blames the state for the screw up, saying it ordered an overhaul of the process several years ago and from 2005 to 2010 while that was in the works, barred the city from filing these types of claims.

But, while the DOE is allowed to file now retroactively, Mayor Bloomberg doubts the DOE will be able to recoup any of the money.

Read the whole story here.

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