October 25, 2007

Honorable Lynn Spampinato

Virgin Islands Department of Education

Office of the Commissioner

1834 Kongens Gade

St. Thomas, U.S. Virgin Islands 00802-6746

Dear Commissioner Spampinato:

This is to inform you that your State's application for Federal Fiscal
Year (FFY) 2007 funds, under Part B of the Individuals with Disabilities
Education Act (Part B), can be approved. Our approval is based on review
of your application submitted by the Virgin Islands Department of
Education (VIDE) to the U.S. Department of Education, Office of Special
Education Programs (OSEP), on June 6, 2007 and resubmitted on June 28,
2007, August 31, 2007, September 29, 2007 and October 3, 2007, including
assurances provided in Section II which are incorporated by reference to
this letter as noted in Enclosure A. OSEP also notes that the
application was not made available for public comment and review until
June 11, 2007. On August 27, 2007, OSEP received notice from VIDE that
the public comment period ended on August 11, 2007. Enclosed is the
grant award for funds currently available under the Department of
Education FFY 2007 Appropriations Act for the Part B Section 611 (Grants
to States) program. These funds are for use primarily in school year
2007-2008 and are available for obligation by States from July 1, 2007
through September 30, 2009.

The Virgin Islands' FFY 2006 IDEA Part B grant awards were released
subject to new Department-wide Special Conditions identified in the
Department's September 27, 2006 letter to the Virgin Islands regarding
the use of a third-party fiduciary. The Department-wide Special
Conditions were imposed upon certain Department FFY 2006 and 2007 grants
to the Virgin Islands and were also applicable to grant funds previously
awarded by the Department to the Virgin Islands that were still
available for obligation or liquidation as of September 27, 2006. The
Virgin Islands FFY 2007 IDEA Part B grant awards are being released
subject to the Department-wide Special Conditions regarding use of a
third-party fiduciary identified in the Department's June 26, 2007
letter and the reasons for imposing these Special Conditions are
described in Enclosure D to this letter.

In addition, the Virgin Islands' FFY 2006 IDEA Part B grant awards were
released subject to the program-specific Special Conditions imposed
under Part B, as described in Enclosure C of the Department's April 30,
2007 letter releasing those grant awards. The FFY 2006 program-specific
Special Conditions imposed under Part B on the Virgin Islands' FFY 2006
Part B grant awards required that by June 1, 2007, VIDE demonstrate
compliance with the requirements related to: children with disabilities
transitioning from Part C to Part B; reporting on the participation and
performance of children with disabilities on Territorywide assessments
with and without accommodations and on alternate assessments; and the
administration of districtwide assessments. VIDE did not meet these
Special Conditions. Specific summaries and analyses of VIDE's
submissions under the FFY 2006 Special Conditions are set out in
Enclosure C.

The Virgin Islands must administer these awards both in keeping with the
applicable provisions of Federal law and regulations and with the
Special Conditions attached to this grant award document. Acceptance by
Virgin Islands of this grant award constitutes an agreement by the
Virgin Islands to comply with these Special Conditions.

Please note that as part of your application for FFY 2007, your
Territory has made an assurance, in 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 Territory, after OSEP approval, to information that
is a part of a Territory's application, must meet the public
participation requirements in 34 CFR §300.165.

Under the Section 611 formula, 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. At the level of the decrease in
the appropriation for the Preschool Grant program compared to that for
prior years, each State is first allocated the amount it received for
FFY 1997. The remaining funds are allocated based on the relative amount
of the increase in funding that the State received between FFYs 1997 and
2006, as compared to the total of such increases for all States.
Enclosure B provides a short description of how Section 611 funds were
allocated and how those funds can be used. In addition, Table I in
Enclosure B shows funding levels for distribution of Section 611 funds
and the parameters for within-State allocations.

Section 611(e)(1)(C) of the IDEA provides that \"\[p\]rior to
expenditure of funds under this paragraph \[section 611(e)(1) concerning
funds for State administration\], the State shall certify to the
Secretary that the arrangements to establish responsibility for services
pursuant to section 612(a)(12)(A) are current.\" We read this provision
to mean that if a State does not have interagency agreements or other
arrangements in place to establish responsibility for the provision of
services, the State may not expend funds available to the State under
section 611(e)(1) \[State administration funds\] until the State has
these agreements or arrangements in place.

Under section 608(a)(2) of the IDEA, each State that receives funds
under Part B is required to inform in writing local educational agencies
located in the State of any State-imposed rule, regulation, or policy
that is not required by IDEA or Federal regulations. A State may use the
same list of State-imposed rules, regulations and policies that it was
required to submit to the Department in Section IV of its Part B
application for this purpose.

The enclosed grant award for FFY 2007 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 B.

Section 606 provides that each recipient of assistance under IDEA make
positive efforts to employ and advance in employment qualified
individuals with disabilities in programs assisted under the IDEA.
Therefore, by accepting this grant a State is expressly agreeing as a
condition of IDEA funding to ensuring that positive efforts are made to
employ and advance employment of qualified individuals with disabilities
in programs assisted under the IDEA.

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

> Sincerely,

###### 

###### /s/ Patricia J. Guard

###### Patricia J. Guard

> Acting Director

Office of Special Education Programs

Enclosures

######### Enclosure A

Enclosure B

> Enclosure C
>
> Enclosure D

cc: Carrie Johns