####### July 9, 2003

Honorable Michael J. Davis

Superintendent of Public Instruction

New Mexico Department of Education

Education Building

300 Don Gasper

Santa Fe, NM 87501-2786

Dear Superintendent Davis:

This is to inform you that we have conditionally approved New Mexico's
Eligibility Document Submission for Federal Fiscal Year (FFY) 2003 under
Part B of the Individuals with Disabilities Education Act (IDEA). Our
determination that you are eligible for a conditional approval is based
on our receipt of the following documents submitted by the New Mexico
Department of Education (NMDE) to the U.S. Department of Education,
Office of Special Education Programs (OSEP):

1.  The Part B Eligibility Document Submission for FFY 2003 including
    the Eligibility Documents submitted May 26, 2000, and subsequent
    revisions to those Eligibility Documents and the Submission
    Statement submitted May 12, 2003; and

2.  The July 3, 2003 letter from New Mexico to OSEP, in which New Mexico
    assures that as soon as possible, but no later than July 1, 2004,
    New Mexico will complete all of the changes set forth in the July 3,
    2003 issues chart including: 34 CFR §§300.142(a)(3), 300.142(e)(1),
    300.142(e)(2)(i), 300.142(e)(2)(ii), and 300.142(g).

3.  The July 3, 2003 letter from New Mexico to OSEP, in which New Mexico
    assures that as soon as possible, but no later than July 1, 2004,
    the State will provide documentation showing that the proposed
    changes to the state regulations to address the requirements of 34
    CFR §§300.505(a)(1), 300.138, 300.142(a)(3), 300.142(b)(2),
    300.142(e)(2)(iii), 300.142(f), and 300.144 were published in the
    New Mexico Register and have taken effect.

> In the July 3, 2003 letter, New Mexico also assures that it will take
> steps to ensure that, throughout the period of this grant award, all
> public agencies in the State that provide special education and
> related services to children with disabilities will operate their
> programs in a manner fully consistent with Part B. New Mexico further
> assures that it will provide OSEP with a copy of a memorandum
> notifying all public agencies of the changes that impact on public
> agencies' provision of special education and related services that
> OSEP requires as a result of its review of the State's eligibility
> documents.

Please note that as part of your Eligibility Document Submission for FFY
2003, your State has made an assurance, under 34 CFR §80.11(c), that it
will comply with all applicable Federal statutes and regulations in
effect with respect to the periods for which it receives grant funding.
Any changes made by the State, after OSEP approval, to information that
is a part of a State's eligibility documentation, must meet the public
participation requirements of the IDEA and must be approved by OSEP
before implementation.

Enclosed are grant awards for funds currently available under the
Department of Education FFY 2003 Appropriations Act for the Part B
Section 611 (Grants to States) and Section 619 (Preschool Grants)
programs. These funds are for use primarily in school year 2003-2004 and
are available for obligation by States from July 1, 2003 through
September 30, 2005.

The amount in your award for Section 619 represents the full amount of
funds to which you are entitled. However, the amount shown in your award
for the Section 611 program is only part of the total funds that will be
awarded to you for FFY 2003. Of the \$8,874,397,536 appropriated for
Section 611 in FFY 2003, \$3,202,397,536 is available for awards on July
1, 2003, and \$5,672,000,000 will be available on October 1, 2003.

The funding formula for the Section 611 program is the same as was
implemented for FFY 2000. Subject to certain maximum and minimum funding
requirements, State allocations are based on the amount that each State
received from FFY 1999 funds, the general population in the age range
for which each State ensures a free appropriate public education (FAPE)
to all children with disabilities, and the number of children living in
poverty in the age range for which each State ensures FAPE to all
children with disabilities.

Enclosure A provides a short description of how Section 611 funds were
allocated and how those funds can be used. In addition, Table I in
Enclosure A shows funding levels for distribution of Section 611 funds.

Enclosure B provides a short description of how Section 619 funds were
allocated and how those funds can be used. In addition, Table II in
Enclosure B shows State-by-State funding levels for distribution of
Section 619 funds.

These awards are based on submission of a complete eligibility document
package, a signed assurance statement regarding resolution of issues
identified in OSEP's review of that eligibility document package, and
implementation of the provisions of the Individuals with Disabilities
Education Act. The complete eligibility document package and assurances
must be made available for public inspection.

We appreciate your ongoing commitment to the provision of quality
educational services to children with disabilities.

> Sincerely,

/s/Patricia J. Guard

###### Stephanie S. Lee

> Director
>
> Office of Special Education Programs

Enclosures

cc: Sam Howarth