2001-2003 State Budget Brief:
Fair Reimbursement for Special Education Costs

Background

Supporters of public education are seeking a fair level of reimbursement for state-mandated special education programs as part of the 2001-2003 state budget. School administrators, educators, parents and local school board members have joined to tell stories about how the lack of funding for special education programs is harming the quality of education in their communities. Individuals from various backgrounds appeared as panels at each of the Joint Finance public hearings on the state budget and are now visiting with legislators to seek fair state reimbursements for special education programs.

State and federal government mandate that schools provide access to special education for all children in need of services, but provide woefully inadequate funding to administer these programs at the local level. This means schools often divert funds from regular education programs to special education programs. The result is often a lack of funds to adequately provide a good education for anyone. The Legislature should help districts make sure that all children, no matter what their needs, receive a top quality education.

The Wisconsin Education Association Council is part of an Education Community Coalition supporting fair reimbursement for special education costs. Other groups in the coalition include: the Wisconsin PTA; the School Administrators Alliance; the Wisconsin Federation of Teachers; the Institute for Wisconsin's Future; the Wisconsin Coalition for Advocacy; and representatives from the Janesville, Madison and Milwaukee school districts.

WEAC Position on Fair Reimbursement of Special Education Costs

The current level of state reimbursement to school districts for special education programs is approximately 35%. If no additional funds are added to special education categorical aids in the 2001-2003 state budget, the level of state reimbursement will drop to approximately 32%.

WEAC is seeking the following level of support from the state for special education funding:

  • A state reimbursement rate of 40% for local special education costs. The net impact of funding under the state's 2/3 commitment would be $40 million in FY02 and $55 million in FY03.
  • Adoption of the Department of Public Instruction budget request for a "low-incidence high-cost reimbursement aid plan in special education. The request would provide statutory language to specify that if a school district, county, CESA or charter school operator incurs special education costs for a pupil that equal or exceed three times the statewide average special education cost per pupil, DPI would provide supplemental aid for those costs beginning in the 2002-03 school year.
  • Provide that the supplemental aid for low-incidence high-cost reimbursements be equal to 90% of the amount by which the cost of providing special education and additional costs (defined as nursing service and assistive technology) to an individual child who exceeds three times the statewide average per pupil cost after the deduction of categorical and federal aid. DPI estimates that this provision would cost $26.1 million in 2002-03.
  • Allow school districts to get reimbursement for pupils who qualify under the low-incidence high-cost aid in the 2001-2002 school year if funding is available.

Talking Points

  • Rising costs in special education are beyond the control of school districts. The alarming trend has only been made worse by revenue caps. Aids received for special education fall outside the revenue caps. When the state reduces these aids, it forces school districts to allocate dollars from general education programs that fall under the revenue caps to fund mandated special education programs. This harms the quality of education in our communities.
  • State reimbursement for special education costs will actually drop to approximately 32% by the end of the 2002-2003 school year. The federal government promises a 40% reimbursement level, yet the actual rate is closer to 12%. The state should provide a reimbursement rate of 40% to local school districts for special education programs. This will strike a fair balance between state and local government who must be partners in guaranteeing that all children receive access to a great education. With this level of reimbursement, school districts will be able to place all children in classrooms that work.
  • Providing all children with access to a great school must be the top priority for our government. In some rare low-incidence high-cost cases, a child in need of special education services can cost many times the statewide average to educate. A low-incidence high-cost relief aid plan should be approved to help in these situations, which can be devastating to schools under revenue caps.

For additional information

Please feel free to contact Bob Burke, WEAC Legislative Coordinator, at 800-362-8034 ext. 254 or by e-mail at burkeb@weac.org for additional information about this budget brief.

Posted May 14, 2001