Duncan Denies S.C.'s Request for Hearing on Loss of Ed Money

The U.S. Education Department denied South Carolina's request to further appeal a $36 million penalty for not spending enough on special education during the economic downturn, meaning the cut could continue indefinitely.

U.S. Secretary of Education Arne Duncan dismissed the case in a six-page order sent to state officials.

South Carolina schools chief Mick Zais said Monday he's left with no choice but to pursue solutions through the courts and Congress.