From the Capitol – Common Ground September 2011
The state’s non-partisan Office of Legislative Services (OLS) has issued a report calling for changes in New Jersey’s special education funding system.
When the School Funding Reform Act (SFRA) was enacted, it dramatically changed the way in which state special education aid gets distributed to local districts. The old formula provided aid based on the number of children identified in each district, and the intensity of the services needed by each child. The new formula provides state aid based on the average percentage of students classified statewide, and a statewide average of excess cost. It does not consider the number of children with disabilities in a particular district or the nature of their disability. As a result of this change, some districts received a windfall in special education aid, while others took dramatic cuts.
OLS recommends that the actual classification rate in a local district, not the statewide census average, be used for state aid purposes. “Actual funding needs for special education programs may not be adequately provided under the current formula,” OLS wrote. “Many districts will continue to be over or underfunded at that state level as long as the average classification rate is utilized.” OLS has called on the New Jersey Department of Education (NJDOE) to seek legislation allowing for actual classification rates to be used.
In a response letter, the department “respectfully disagrees,” citing that the policy decision to change the formula was upheld by the courts in 2009.
SFRA also requires the NJDOE to commission an independent funding study to examine the adequacy of the special education funding provisions of the law. The state has yet to issue the findings of the study, which were to have been provided to the legislature more than a year ago.
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