Garden State Coalition of Schools/GSCS                                                             11-30-07

SPECIAL EDUCATION AID SHOULD REMAIN A CATEGORICAL AID in NEW FUNDING PLAN -  Q&A

A recommendation in the new funding formula proposes revising the way special education aid is calculated and distributed among school districts. The state will convert a portion of special education aid from a ‘categorical’ type of state aid - which is granted per student directly dependent on the individual’s disability -  to a wealth-equalized type of state aid for special education student - which is calculated based on the states’ determination of the property and income wealth of the school district’s municipality.

                Funding for Special Education is a critical component of any new school funding formula.  The following Q&A provides answers to some of the most frequently asked questions on the subject.

Q: Why is state funding for Special Education important?

A: Special Education programs and services are essential for the educational success of our students.  They are also state mandated.  Special Education costs  obligate local taxpayers in every district.

Q: What is categorical aid for Special Education?

A: Right now state Special Education funding is “categorical” or separate from other education aid.  Categorical aid for Special Education follows the child, while most other aid is distributed according to wealth-determined formulas.

Q: What’s wrong with creating a comprehensive “wealth equalized” education formula that includes Special Education Aid?

A: If Special Education aid is included in a “wealth equalized” formula, the aid will no longer follow the child; it will be distributed according to the perceived wealth of the community or school districts.  For many New Jersey school districts, categorical aid for Special Education constitutes the majority of the aid received from the state.  Under a wealth equalized formula those districts would receive substantially less aid.

Q: Why is that a problem?  Aren’t those districts wealthy enough to afford Special Education programs and services?

A: Mandated Special Education programs and services are expensive because they are labor and time intensive and require specially trained personnel.  With tight, state-imposed caps on spending and fund balances (surplus), all districts, regardless of wealth, need help with Special Education costs.  A wealth equalized funding formula would deprive districts of most of this aid, forcing them to make deep cuts in regular education programs in order to pay for state-mandated Special Education programs and services.  These kinds of cuts diminish overall educational quality and divide communities.

Q: Would wealth equalization have an effect on Special Education programs?

A: A wealth equalized formula, which would distribute Special Education aid based on the perceived wealth of school districts, would mean that some districts would receive substantially more aid than others.  This situation could potentially create varying program standards among districts.  Those receiving large amounts of aid would have an incentive to over classify Special Education students.  Districts receiving only small amounts of Special Education aid might under classify Special Education Students due to lack of resources.  Under classification could also result in higher litigation costs.

                Maintaining categorical aid for Special Education helps New Jersey’s most vulnerable students, prevents divisive community battles over limited educational resources and relieves overburdened local taxpayers.  “Equalization” of Special Education state aid could create further inequity in special education program standards across districts, as well as promote disincentives to classifying students.