SPECIAL EDUCATION FUNDING ACROSS THE STATES

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1 SPECIAL EDUCATION FUNDING ACROSS THE STATES August 21, 2018 Emily Parker

2 What we do We believe in the power of learning from experience and we know informed policymakers create better education policy.

3 Federal Context

4 Individuals with Disabilities Education Act (IDEA) Since 1975, Special education funding has been largely dictated by federal government policy Different from any other student subgroup that states/districts educate

5 What is IDEA? A free, appropriate public education for all children with disabilities Services to each student with disabilities must be based on their individualized education program A student s education services must be provided, to the maximum extent appropriate, in the least restrictive environment Services must be provided regardless of cost to the Local Education Authority

6 Myths about IDEA The federal government does not require states to fund special education programs If a state does choose to provide special education funding to districts, then it must maintain funding at or above the previous year s funding amount or risk reductions in their IDEA Part B grants Federal Law: 34 CFR (a)(3)

7 Myths about IDEA States are allowed to make changes to special education funding Revenue sources Special education funding formulas The total amount of funding cannot decrease

8 50-State Overview

9 State Special Education Funding Currently all states provide districts with some additional special education funding However, no state (except Wyoming) currently fully funds special education

10 State Special Education Models 1. Multiple Student Weights (16 states) 2. Single Student Weight (11 states) 3. Census-Based (5 states) 4. Resource-Allocation Model (8 states) 5. Reimbursement (5 states) 6. Categorical Grant (2 states) 7. High-Cost Students Only (2 states)

11 Special Education Funding Models WA OR NV CA ID UT MT WY CO ND SD NE KS MN WI IA MO IL MI IN KY OH WV PA VA NY NC MD VT NH NJ DE ME MA RI CT Washington D.C. AZ NM OK AR MS TN AL GA SC Multiple Student Weights Single Student Weight AK TX LA FL Census-Based Resource-Allocation Reimbursement Block Grant HI High-Cost Students Only

12 State Examples

13 Single student weight or dollar amount 11 states use a single weight or dollar amount to fund special education Under this method, all special education students are treated the same, regardless of the actual cost or resources required New York: a student who requires special education receives a weight of 2.41 (McKinney's Education Law 3602) North Dakota: special education students receive a weight of (NDCC, )

14 Multiple student weights 16 states provide multiple student weights, based on the severity of disability, resources required, or specific disability New Mexico: provides four weights, ranging from 1.7 to 3.0, based on the severity (N. M. S. A. 1978, ) Texas: provides weights, ranging from 1.1 to 5.0, based on where the student is educated and the resources required (V.T.C.A., Education Code ). South Carolina: provides ten different weights based on the student s disability (Code ).

15 Census-based allocation 5 states assume that all districts in the state, regardless of their actual student composition, have the same percentage of special education students. Alabama assumes that five percent of students receive special education services and weights that five percent at 2.5 (Ala.Code ) In Idaho, districts receive special education funding at a rate of six percent of a district s total K 6 enrollment and 5.5 percent of a district s total 7 12 enrollment. Idaho then uses a resource-based allocation to distribute resources to districts (I.C )

16 Resource-based allocation 8 states primarily use a resource-based allocation to fund students in special education Under a resource-allocation model, states distribute resources (like teachers, aids, specialists and technology) instead of dollars, based on the number of students identified as special education. Delaware has a higher teacher to student ratio for special education students (8.4) than it does for general education students (20) (14 Del.C. 1703) Similarly, Illinois distributes teachers, aids, and psychologists based on the number of identified special education students (105 ILCS 5/ )

17 Reimbursement 5 states use cost reimbursement methods to support special education. The state generally defines eligible cost categories and the percentage of these costs that will be reimbursed by the state. Wyoming is the only state that reimburses 100 percent of the cost of educating special education students (W.S ) Michigan also reimburses districts for qualified special education expenses, but caps the reimbursement at 75 percent of the cost (M.C.L.A )

18 Categorical Grant 2 states use block grant distributions that are based on state allocations and can vary based on availability of funds. Utah uses a block grant distribution funding mechanism where the amount allocated is based on averages of the prior five years, with a growth factor (U.C.A A-17a-111)

19 Funding for high-cost students Because of the range of the cost of educating students who require special education, the state will often step in to lessen the burden on districts by providing additional funding for very high cost students. This funding mechanism is often layered on top of other funding mechanisms (e.g. New Hampshire, Massachusetts, and Maine). However, in 2 states Connecticut and Arkansas state funding is exclusively for very high-cost students.

20 Questions? Emily Parker Policy Analyst

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