The US Supreme Court is hearing the case School Board of New York City vs. Tom F. At issue is whether a student, with an Individualized Educational Program (Special Ed student), can attend and the parents be reimbursed for, a private education if the family hasn't first tried a public education alternative.
Lower courts have agreed that Tom F should be reimbursed for his son's private school education. In fact, the NY School District's staff also agreed for the first two years of the boy's education. Then they developed an IEP and recommended a public school, with a 15 to 1 student to teacher ratio. The private school has a 10 to 1 ratio; a hearing officer agreed with the parents that the private school was the best placement. A lower court also agreed with the parents.
You can read more about this at: http://www.pbs.org/newshour/extra/features/july-dec07/scotus_10-08.html