In Canada, there is a recent trend toward non-categorization of services of students with emotional and behavioural disabilities (EBD). Yet in Alberta, the coding of students with EBD provides opportunities to diagnose students' learning difficulties but is hindered in this process, in large part, by being tied into special needs funding. Current coding and subsequent funding practices favour a medical model approach that provides opportunity to over- and misidentify students for higher funding levels. Though this is likely done with good intentions to get services otherwise denied, it may have led to a perverse situation of the practice of "coding for dollars" for these students. In this article we discuss the Alberta EBD coding and funding model using administrative data as well as conclusion remarks from a seminar participated in by different stakeholders. Recommendations for policy changes will be addressed. (Contains 1 figure.)