July 2, 2007

Honorable Susan T. Zelman

Superintendent of Public Instruction

Ohio Department of Education

25 South Front Street, Mail Stop 70

Columbus, Ohio 43215-4183

Dear Superintendent Zelman:

This is to inform you that we have conditionally approved Ohio's
application for Federal Fiscal Year (FFY) 2007 under Part B of the
Individuals with Disabilities Education Act (IDEA). Our conditional
approval is based on review of your application submitted by the Ohio
Department of Education to the U.S. Department of Education, Office of
Special Education Programs (OSEP), on May 4, 2007, including assurances
provided in Section II, and incorporated by reference to this letter as
noted in Enclosure A. In addition, the State provided specific
assurances that it will:

1.  Operate consistent with the applicable Part B regulations; and

2.  Make such changes to existing policies and procedures as are
    necessary to bring those policies and procedures into compliance
    with the requirements of Part B of the IDEA, as amended, as soon as
    possible, and not later than June 30, 2008. Section II of the
    State's application identifies the IDEA statutory sections for which
    the State needs to amend policies and procedures and the timelines
    by which the State will amend its policies and procedures in order
    to comply with Part B of the IDEA. Within Section II, the State has
    included the date by which it expects to complete necessary changes
    associated with any policies and procedures that are not yet in
    compliance with the requirements of Part B of the IDEA, as amended.

Enclosed are grant awards for funds currently available under the
Department of Education FFY 2007 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 2007-2008 and
are available for obligation by States from July 1, 2007 through
September 30, 2009.

Ohio's FFY 2007 IDEA Part B grant awards are being released subject to
[FFY 2007 Special Conditions]{.underline}, pursuant to the Department's
authority in 34 CFR §80.12, as set forth in Enclosure D of this letter.
The Department's determination that the State's FFY 2007 IDEA Part B
grant awards are being released subject to FFY 2007 Special Conditions
is based on the State's failure to ensure that a free appropriate public
education (FAPE) is available to each child with a disability entering
the Part B program by the child's third birthday, including ensuring
that an individualized education program (IEP) or, if appropriate, an
individualized family service plan (IFSP) is in effect by the child's
third birthday, as required by 34 CFR §300.124. The reasons for doing so
and the specific conditions are detailed in the enclosure. Ohio must
administer these awards both in keeping with the applicable provisions
of Federal law and regulations and the [Special Conditions]{.underline}
attached to the grant award document. Acceptance by Ohio of these grant
awards constitutes an agreement by the State to comply with the [Special
Conditions]{.underline}.

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

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 2007. Of the \$10,782,961,000 appropriated for
Section 611 in FFY 2007, \$5,358,761,000 is available for awards on July
1, 2007, and \$5,424,200,000 will be available on October 1, 2007.

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. Table II in Enclosure B
shows your State-specific information for within-State distribution of
611 funds based on your State's application. If you disagree with the
information in Enclosure B Table II, notify your State contact
immediately.

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

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: State Director