ALBANY — The former head of a special-education company accused of bilking the city has avoided jail time by agreeing to pay back $418,000.

Morton Kramer also agreed Friday to serve five years’ probation as part of a plea deal in Manhattan Supreme Court.

Kramer headed the Long Island-based IncludED Educational Services, which had contracts with the city’s Department of Education and other school districts.

He admitted to misusing millions of dollars in public funds, including to employ 11 family members, lease Cadillacs, pay relatives’ tuition and pay a son’s living expenses in California.