Governor Christie has approved the state budget for New Jersey for the 2014 fiscal year, which began on July 1. The budget includes two changes that affect special education funding. First, the amount of categorical aid for special education that districts will receive from the state increased by $408, to $15,337 per student. This amount is intended to cover the average excess cost for special education and related services.
The second change increased the threshold for “extraordinary costs” aid by $5,000. “Extraordinary costs” aid provided to districts to help offset costs for individual students whose special education needs are so intensive that the cost to provide services exceeds $45,000. The new higher threshold will reduce the number of students eligible for this aid, and marks the first time in the history of the School Funding Reform Act of 2008 (SFRA) that the threshold has been increased.
In January the legislature, through concurrent resolutions (SCR-134 and ACR-172), notified the governor of its objections to some of the changes to SFRA because they are not based on research or data. Among the changes mentioned in concurrent resolution is the proposed increase in the threshold for extraordinary costs. The legislature objected to this recommendation “because it appears to be motivated by a desire to reduce the state’s obligation without regard to the potential fiscal implications for school districts.”
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