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Note:  This document has been delivered to the Office of the Federal Register but has not yet been scheduled for publication.  The official version of this document is the document that is published in the Federal Register.

public insurance and benefits and private insurance.

Changes: We have removed proposed §303.520(b)(1)(iv) and

added new §303.520(c).

Proceeds or funds from public insurance or benefits or from

private insurance (§303.520(c), redesignated §303.520(d))

Comment: Some commenters requested clarification on

proposed §303.520(c)(3), which provided that States could

exclude from the calculation of State and local

expenditures under proposed §303.225 (prohibition against

supplanting), the State portion of funds from a Federal public benefits program such as Medicaid. Some commenters objected to the provision because they viewed it as administratively burdensome and stated it would create significant challenges with data collection and reporting.

Discussion: As discussed in the Analysis of Comments and

Changes section accompanying §303.225, since the

publication of the IDEA Part C NPRM in May 2007, Part C State lead agencies have raised a number of issues regarding the MOE provisions in the Part C regulations

(which implement Part C’s supplement not supplant

requirements). Therefore, we are removing proposed

§303.520(c)(3) and intend to issue an NPRM addressing MOE

requirements under Part C of the Act.

Changes: We have removed proposed paragraph (c)(3) and