July 3, 2006

Honorable Antonia C. Novello

Commissioner

New York Department of Health

Corning Tower, Room 1408

Empire State Plaza

Albany, New York 12237

Dear Commissioner Novello:

This is to inform you that we have conditionally approved New York's
Application, including policies, procedures, methods, descriptions, and
assurances, for Federal Fiscal Year (FFY) 2006 under Part C 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 Part C Application for FFY 2006, including the policies,
procedures, methods, descriptions, assurances, certifications, and
submission statement submitted by the New York Department of Health to
the U.S. Department of Education, Office of Special Education Programs
(OSEP), on April 7, 2006 in which it assures that it will:

1.  Operate consistent with the Part C requirements of PL 108-446 and
    its applicable regulations in 34 CFR Part 303;

2.  Ensure that the Statewide system of early intervention services
    required by Part C and its implementing regulations is in effect
    throughout the FFY 2006 grant period; and

3.  Make such changes to, and submit for OSEP's approval, existing
    policies, procedures, methods, and descriptions as are necessary to
    bring those policies, procedures, methods and descriptions into
    compliance with the requirements of Part C of the IDEA, as amended,
    as soon as possible, and not later than the earlier of the date
    indicated by the State in Section II of its application or June
    30, 2007. Section II of the State's application (which is
    incorporated by reference and enclosed with this grant letter)
    identifies the IDEA statutory sections for which the State needs to
    amend policies, procedures, methods and descriptions and the
    timelines by which the State will amend any policies, procedures,
    methods and descriptions in order to comply with Part C of the IDEA.
    Within Section II, the State has included the date by which it
    expects to complete necessary changes associated with any policies,
    procedures, methods and descriptions that are not yet in compliance
    with the requirements of Part C of the IDEA, as amended.

Enclosed is the State's grant award for funds currently available under
the Department of Education FFY 2006 Appropriations Act for the Part C
program. These funds are for use primarily in the fiscal year 2006-2007
and are available for obligation by States from July 1, 2006 through
September 30, 2008. Barbara McTague's May 25, 2006 letter to OSEP
resolved the application issue identified in OSEP's March 2, 2006 letter
responding to New York's Part C State Performance Plan (SPP). OSEP
appreciates the State's clarification and resolution of this SPP issue
related to the timeliness of due process hearing request resolutions.

The enclosed grant award for FFY 2006 is made with the continued
understanding that this Office may, from time to time, require
clarification of information within your application, if necessary.
These inquiries are needed to allow us to appropriately carry out our
administrative responsibilities related to Part C.

Please note that as part of your State's Application for FFY 2006, 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 FFY 2006 grant period. Any changes made by the State to
its FFY 2006 Application or to its Part C policies, after OSEP's
approval, must meet the applicable public participation requirements in
Part C of the IDEA and may also need to be submitted to OSEP for
approval prior to implementation.

## Section IV.B of the FFY 2006 application for Part C funds requested updated information about each State's restricted indirect cost rate. Your agency indicated it has a final restricted indirect cost rate of 7.2% approved by your agency's cognizant agency that expired on 3/31/2006 and the agency is in the process of negotiating a new restricted indirect cost rate that will be in effect for the period. In Section IV.B of the Application, the State lead agency indicated it will continue to bill the Part C FFY 2006 grant based on this previously approved restricted indirect cost rate until a final restricted indirect cost rate is approved for FFY 2006, which may result in an adjustment of the final audited expenditures allowed to the Part C FFY 2006 grant funds. When a final restricted indirect cost rate is approved for FFY 2006, please forward to our Indirect Cost Unit: (1) a copy of the final rate agreement, and (2) details of adjustments made to GAPS liquidations from the provisional or prior billing rate after approval of the final rate.

Section 604 of the IDEA provides that "\[a\] State shall not be immune
under the eleventh amendment to the Constitution of the United States
from suit in Federal court for a violation of this Act." Section 606
provides that each recipient of assistance under IDEA make positive
efforts to employ and advance in employment qualified individuals with
disabilities. Therefore, by accepting this grant a State is expressly
agreeing as a condition of IDEA funding to a waiver of Eleventh
Amendment immunity and to ensuring that positive efforts are made to
employ and advance employment of qualified individuals with
disabilities.

We appreciate your ongoing commitment to the provision of quality early
intervention services to infants and toddlers with disabilities and
their families.

> Sincerely,
>
> /s/ Alexa Posny
>
> Alexa Posny, Ph.D.
>
> Director

Office of Special Education Programs

##### Enclosures

##### Enclosure A

cc: Barbara L. McTague

Acting Director

Early Intervention Program