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Coalition for Children

Increase Funding for Special Education Fact Sheet

Position
Re-instate the annual special education growth factor into the k-12 funding formula and fund it accordingly.

Background Information
Minnesota’s funding commitment to educate students with disabilities has historically been strong. However, there is increasing concern that too much of the cost to educate students with disabilities are borne by local school districts. In the early 1990’s a concerted effort was made to increase the state’s share of special education costs by implementing a growth factor into the funding formula. In 2003 the growth factor was repealed thus causing the “cross subsidy” to increase. For FY 2004 the adjusted net cross subsidy is estimated to be $377 million. To make the funding system more equitable and relieve stress on local districts, the state should pay a higher percentage of special education costs.

Reasons to Support

  • Providing a high quality education to all children is important for Minnesota. Changing demographics will require businesses to tap into students and adults with disabilities to address future workforce needs.
  • While providing a quality education to some students with disabilities may be considered expensive, the alternatives are far more expensive.
  • Shifting more costs to educate students with disabilities to local school districts is a contributing factor to the financial stress faced by many districts.
  • Communities are becoming unnecessarily divided when families who have children with disabilities are blamed for the cost of educating their children by school officials and others.
  • Implementing local levy options for special education might be helpful in some local districts but many communities aren’t able to pass a levy for this purpose. Some might be able to pass a separate levy but the net effect is minimal.
  • States and localities don’t have the ability to limit their special education programs to the funding available, and are required to ensure that every student receives a free and appropriate public education.

This document was prepared using private funding.

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