PLATTSBURGH -- Local school districts are keeping a closer eye on Medicaid reimbursements since New York state's announcement of millions in losses.

Actually, that estimate is much smaller when examining what each individual district lost.

School officials say they've already begun making the changes to ensure they don't miss out on that money in the future, though at the same time they are frustrated with the never-ending changes in the process.

"The ground rules have changed, and almost quarter to quarter, it becomes more stringent," said Peru Central School Superintendent A. Paul Scott. "The guidelines for districts to receive reimbursements for services provided have become more stringent, and the amount of funds available seem to be shrinking.

"That will be an ongoing challenge in the years ahead, especially during this economic downturn."

Weak internal controls and policies prevented eight school districts throughout northeastern New York from claiming at least $3.1 million in Medicaid reimbursable expenses, according to a news release from State Comptroller Thomas P. DiNapoli's office. As a result, the districts lost out on $1.54 million in revenue for the schools and state to share.

In Clinton, Essex and Franklin counties, the schools listed in the report are Peru, Plattsburgh, Salmon River and Saranac.

"School districts are struggling to fund educational programs with limited resources, and every nickel matters," DiNapoli said. "Medical reimbursements are an important revenue source for school districts and the state. The money is being spent, the services are being provided, and districts should go after the reimbursement."

The audit covered the period of July 2005 to June 2007. School districts and New York state are each entitled to 25 percent of such expenses from the federal government. By failing to claim the Medicaid expenses, districts collectively lost out on $770,000, with the state missing out on the same amount.

Reasons given by school districts for failing to claim the money included untimely identification of Medicaid-eligible students, difficulty obtaining proper documentation, irregularly claiming bills resulting in a backlog of claims and not reviewing denials to possibly resubmit for reimbursement.

"It had just been during the past couple years that the School Board and administration had been working on strengthening Medicaid reimbursement procedures," Scott said. "The time looked at was before the time period Peru Central moved ahead with some initiatives to strengthen Medicaid reimbursement."

Peru officials lost out on nearly $110,000.

"We are now in a position where we are much more likely to receive the amount of reimbursement we are eligible for," Scott said. "We are in the process of seeking the unclaimed reimbursements."

School districts may be able to get all or most of the money they failed to claim.

Plattsburgh City School could have collected another $33,805.