June 8, 2004 |
2004-R-0470 | |
FEDERAL AND STATE SPECIAL EDUCATION FUNDING | ||
| ||
By: Judith Lohman, Chief Analyst | ||
You asked how much federal funding Connecticut receives for special education, who gets it, and if there is any information on future federal special education funding for the state. You also asked for information on the status of the law concerning state payments for high-cost special education placements.
SUMMARY
In FY 2004, Connecticut received an estimated $ 126. 5 million in federal funding for special education. The largest share of this funding, a grant of almost $ 117 million, supports special education programs and services to children in grades K-12 attending public school. Federal law requires the state to distribute most of the money from this grant to local school districts based on the number of students in each district receiving special education and related services.
Congress is currently in the process of reauthorizing the federal special education law and revising federal funding levels for federal FY 2005, which begins October 1, 2004. Under all the federal proposals (the president’s budget and the House and Senate bills), Connecticut would receive more funding in FY 2005 that it did in FY 2004. Final funding levels are still to be determined.
In addition to federal special education funding, the state funds two special education grants. Both reimburse local districts for special education-related costs. One grant pays the full cost of special education for state-placed children who have no identifiable home district. The other, known as the “excess cost” grant, pays any student’s special education costs that exceed five times his school district’s average per-pupil expenditure for the preceding year. The state was scheduled begin paying all costs exceeding 4. 5 times average per-pupil expenditures starting July 1, 2002, but the General Assembly has twice put off the effective date of the change. It is now scheduled to take effect on July 1, 2005.
In addition, because of budget constraints, the state did not fully fund the excess cost grant for FY 2003. Thus, for that year, school districts did not receive full reimbursement for special education costs exceeding five times their average per pupil expenditures.
FEDERAL FUNDING
Funding Levels
The federal government provides three special education grants to states under the Individuals With Disabilities Education Act (IDEA). The largest of the three is called “IDEA Part B. ” This grant supports special education programs provided by states and local school districts for children in grades K-12. Two smaller grants support preschool programs (those for children aged 3 to 5 in Connecticut) and programs for infants and families (the so-called Birth-to-Three Program).
Table 1 below shows actual federal funding levels to Connecticut for all three grants for FYs 2001 through 2003 and the estimated levels for FY 2004.
Table 1: Federal Special Education Funding to Connecticut
FYs 2001-2004
Grant |
2001 (actual) |
2002 (actual) |
2003 (actual) |
2004 (estimated) |
Special Education - Grants to States (IDEA Part B) |
$ 76,114,202 |
$ 89,245,788 |
$ 103,861,437 |
$ 116,976,890 |
Special Education – Preschool grants |
5,009,888 |
5,009,888 |
4,980,763 |
4,983,470 |
Grants for Infants and Families |
4,083,368 |
4,478,645 |
4,663,593 |
4,584,842 |
Total |
$ 85,207,458 |
$ 98,734,321 |
$ 113,505,793 |
$ 126,545,202 |
Source: U. S. Department of Education
Distribution
IDEA Part B grants are distributed according to a formula specified by the federal government. Grants are currently determined based on the amounts each state received for FY 1999 and the relative numbers of children in their general populations and in poverty in the age ranges for which they mandate services. Most of the funds must be distributed to local education agencies directly serving children. States may retain part of the money for state-level activities, including administration and support of, and direct services to, children with disabilities.
In FY 2003, the latest year for which final figures are available, Connecticut distributed $ 72,142,143 in federal grant funds to local school districts (see Table 2, attached). The state allocated almost $ 2 million of the federal funds to programs for children receiving special education in the state vocational-technical schools and in the school systems run by the departments of Corrections and Children and Families.
Future Federal Funding
When Congress enacted the federal special education law in 1975, it promised to fund 40% of the average per-pupil expenditure for educating children with disabilities (“full funding”). But federal funding has always fallen short of this goal, reaching only 20% in FY 2004.
Congress is currently considering bills to reauthorize the IDEA. The Senate and House have passed differing versions, which must be reconciled in a conference committee. Both versions would authorize significant additional funding for special education. President Bush’s proposed budget would also increase special education funding.
A May 25, 2004 issue brief from Federal Funds Information for States (FFIS) summarizes the differences in the House and Senate proposals and estimates IDEA Part B funding for each state under the various proposals (copy enclosed). Table 3 shows Connecticut’s estimated FY 2005 funding under each one as well as the state’s share in FY 2004 and its share under the president’s budget. It also shows how much Connecticut would receive under “full” funding (i. e. , at 40% of average per-pupil cost).
Table 3: Connecticut Federal Special Education Funding
FY 2004 Enacted |
$ 116,977,000 |
FY 2005 - President’s Budget |
127,743,000 |
FY 2005 - House |
156,669,000 |
FY 2005 - Senate |
142,634,000 |
FY 2005 – “Full Funding” |
240,206,000 |
Source: Federal Funds Information for States
STATE SPECIAL EDUCATION EXCESS COST GRANT
By law, the state pays the entire cost of providing special education and related services for any student that exceeds five times the school district’s average per-pupil expenditure for the preceding year. For example, if a district spent an average of $ 9,000 to educate each student, it would be responsible for paying the first $ 45,000 of special education costs for any of its students and the state would pay any costs above that amount (“excess costs”).
In 2001, the General Assembly enacted a law to lower the special education excess cost threshold from five to 4. 5 times a district’s average per-pupil expenditure for the preceding year. Using the example above, the change would have reduced the local contribution from $ 45,000 to $ 40,500 (PA 01-2, June Special Session).
The increase in the state’s contribution was to take effect on July 1, 2002. But in 2002, the legislature postponed the effective date to July 1, 2003 (PA 02-7, May 9 Special Session). And in 2003, it (1) put off the increase in the state’s excess cost contribution to July 1, 2005 and (2) required a proportional reduction in the state excess cost grant in FYs 2003, 2004, and 2005 if total grants to all towns exceed the amounts appropriated (PA 03-1 and PA 03-6, June 30 Special Session).
The grant cap and funding rescissions reduced state special education excess cost grants by 16. 3 % in FY 2003, according to the state Department of Education. Table 2 shows each school district’s total special education spending and the state and federal special education grants each received in FY 2003.
Table 2: Special Education Spending and State and Federal Special Education Grants
FY 2002-03
DISTRICT |
Total Special Education Expenditures |
Federal IDEA Part B Grant |
State Special Education Grants | ||
Excess Cost |
State Placement |
Total State | |||
Andover |
$ 653,709 |
$ 22,846 |
$ 38,428 |
$ 0 |
$ 38,428 |
Ansonia |
4,376,150 |
271,000 |
57,554 |
240,324 |
297,878 |
Ashford |
1,369,933 |
84,348 |
62,988 |
28,404 |
91,392 |
Avon |
4,986,210 |
312,311 |
114,640 |
52,828 |
167,468 |
Barkhamsted |
662,568 |
0 |
48,332 |
0 |
48,332 |
Berlin |
5,223,556 |
388,418 |
55,475 |
108,996 |
164,471 |
Bethany |
831,228 |
64,934 |
4,694 |
0 |
4,694 |
Bethel |
6,702,372 |
417,890 |
181,763 |
250,550 |
432,313 |
Bloomfield |
4,915,942 |
427,957 |
56,404 |
258,929 |
315,333 |
Bolton |
1,795,038 |
108,372 |
91,254 |
105,173 |
196,427 |
Bozrah |
787,375 |
48,944 |
15,000 |
71,629 |
86,629 |
Branford |
6,771,929 |
528,504 |
194,880 |
88,555 |
283,435 |
Bridgeport |
39,766,760 |
3,836,831 |
1,467,798 |
1,939,895 |
3,407,693 |
Bristol |
14,498,969 |
1,219,002 |
385,978 |
749,353 |
1,135,331 |
Brookfield |
4,187,930 |
331,059 |
169,205 |
27,080 |
196,285 |
Brooklyn |
2,191,267 |
172,503 |
36,900 |
186,570 |
223,470 |
Canaan |
378,234 |
0 |
97,362 |
0 |
97,362 |
Canterbury |
2,090,153 |
93,679 |
29,169 |
49,990 |
79,159 |
Canton |
2,468,731 |
141,350 |
14,445 |
40,103 |
54,548 |
Chaplin |
535,226 |
0 |
0 |
43,869 |
43,869 |
Cheshire |
9,890,391 |
556,552 |
191,507 |
33,181 |
224,688 |
Chester |
683,929 |
0 |
34,982 |
0 |
34,982 |
Clinton |
4,426,974 |
298,904 |
29,840 |
143,722 |
173,562 |
Colchester |
5,771,854 |
355,285 |
307,327 |
152,284 |
459,611 |
Colebrook |
209,271 |
0 |
0 |
0 |
0 |
Columbia |
1,462,687 |
108,969 |
72,129 |
12,406 |
84,535 |
Cornwall |
268,247 |
0 |
0 |
0 |
0 |
Coventry |
3,332,849 |
244,265 |
83,109 |
153,566 |
236,675 |
Cromwell |
2,837,329 |
160,000 |
69,325 |
86,394 |
155,719 |
Danbury |
15,687,555 |
1,283,885 |
206,104 |
403,669 |
609,773 |
Darien |
9,096,973 |
250,000 |
933,311 |
33,710 |
967,021 |
Deep River |
1,003,320 |
0 |
59,245 |
0 |
59,245 |
Derby |
3,286,189 |
230,744 |
190,151 |
144,794 |
334,945 |
Eastford |
702,474 |
42,071 |
27,713 |
0 |
27,713 |
-Continued-
DISTRICT |
Total Special Education Expenditures |
Federal IDEA Part B Grant |
State Special Education Grants | ||
Excess Cost |
State Placement |
Total State | |||
East Granby |
1,743,496 |
0 |
91,497 |
22,046 |
113,543 |
East Haddam |
2,766,623 |
133,523 |
108,970 |
138,112 |
247,082 |
East Hampton |
4,689,130 |
242,637 |
110,019 |
129,292 |
239,311 |
East Hartford |
14,138,701 |
999,952 |
32,002 |
662,866 |
694,868 |
East Haven |
6,910,317 |
370,475 |
137,755 |
312,108 |
449,863 |
East Lyme |
6,012,398 |
241,560 |
478,383 |
9,945 |
488,328 |
Easton |
1,839,109 |
84,295 |
27,247 |
0 |
27,247 |
East Windsor |
2,507,734 |
172,741 |
200,843 |
186,118 |
386,961 |
Ellington |
3,942,109 |
93,000 |
56,637 |
136,562 |
193,199 |
Enfield |
11,114,156 |
774,395 |
308,514 |
417,509 |
726,023 |
Essex |
1,235,950 |
0 |
26,847 |
0 |
26,847 |
Fairfield |
20,929,465 |
1,290,828 |
708,677 |
9,251 |
717,928 |
Farmington |
5,174,629 |
461,481 |
141,427 |
75,805 |
217,232 |
Franklin |
532,625 |
39,797 |
19,826 |
19,696 |
39,522 |
Glastonbury |
11,144,182 |
673,069 |
733,138 |
79,798 |
812,936 |
Granby |
3,093,276 |
218,292 |
7,479 |
11,532 |
19,011 |
Greenwich |
28,258,935 |
861,043 |
1,389,533 |
146,749 |
1,536,282 |
Griswold |
4,539,013 |
298,549 |
88,648 |
226,621 |
315,269 |
Groton |
13,302,777 |
863,390 |
356,089 |
253,066 |
609,155 |
Guilford |
7,979,226 |
369,000 |
187,236 |
182,962 |
370,198 |
Hamden |
17,888,932 |
612,000 |
190,291 |
530,256 |
720,547 |
Hampton |
1,851,270 |
0 |
0 |
0 |
0 |
Hartford |
65,930,518 |
5,461,208 |
551,935 |
3,249,124 |
3,801,059 |
Hartland |
533,871 |
0 |
0 |
17,345 |
17,345 |
Hebron |
1,565,192 |
87,271 |
0 |
0 |
0 |
Kent |
575,505 |
0 |
43,022 |
0 |
43,022 |
Killingly |
5,671,810 |
333,071 |
314,613 |
372,802 |
687,415 |
Lebanon |
2,110,808 |
177,558 |
41,594 |
18,864 |
60,458 |
Ledyard |
6,316,857 |
225,000 |
238,729 |
213,354 |
452,083 |
Lisbon |
1,335,746 |
86,531 |
3,448 |
0 |
3,448 |
Litchfield |
1,858,810 |
168,325 |
44,206 |
6,655 |
50,861 |
Madison |
6,071,661 |
537,149 |
371,633 |
36,886 |
408,519 |
Manchester |
15,959,320 |
1,064,764 |
147,659 |
704,600 |
852,259 |
Mansfield |
2,967,690 |
187,212 |
28,522 |
26,684 |
55,206 |
Marlborough |
984,240 |
103,615 |
17,644 |
0 |
17,644 |
Meriden |
20,141,439 |
1,283,775 |
387,193 |
744,724 |
1,131,917 |
Middletown |
11,657,661 |
1,076,000 |
422,027 |
293,232 |
715,259 |
-Continued-
DISTRICT |
Total Special Education Expenditures |
Federal IDEA Part B Grant |
State Special Education Grants | ||
Excess Cost |
State Placement |
Total State | |||
Milford |
13,715,655 |
1,202,676 |
89,947 |
202,784 |
292,731 |
Monroe |
5,704,005 |
492,955 |
40,960 |
88,573 |
129,533 |
Montville |
5,833,836 |
400,000 |
128,167 |
141,419 |
269,586 |
Naugatuck |
9,422,803 |
770,434 |
301,241 |
350,872 |
652,113 |
New Britain |
28,514,906 |
2,676,693 |
305,450 |
957,529 |
1,262,979 |
New Canaan |
7,516,142 |
404,462 |
444,130 |
72,271 |
516,401 |
New Fairfield |
4,739,321 |
308,358 |
94,035 |
52,559 |
146,594 |
New Hartford |
1,601,947 |
67,306 |
87,481 |
41,970 |
129,451 |
New Haven |
46,330,756 |
3,333,611 |
80,003 |
2,067,786 |
2,147,789 |
Newington |
6,461,172 |
384,776 |
247,456 |
103,409 |
350,865 |
New London |
11,936,753 |
533,978 |
142,501 |
402,407 |
544,908 |
New Milford |
9,116,680 |
268,925 |
511,418 |
181,812 |
693,230 |
Newtown |
7,777,677 |
531,616 |
616,293 |
186,664 |
802,957 |
Norfolk |
350,832 |
0 |
9,102 |
24,021 |
33,123 |
North Branford |
4,059,227 |
258,462 |
138,477 |
48,809 |
187,286 |
North Canaan |
512,678 |
0 |
0 |
0 |
0 |
North Haven |
6,499,761 |
326,287 |
220,943 |
185,841 |
406,784 |
North Stonington |
1,948,759 |
105,981 |
106,484 |
28,060 |
134,544 |
Norwalk |
23,462,054 |
708,159 |
612,970 |
401,659 |
1,014,629 |
Norwich |
13,091,230 |
736,328 |
683,147 |
475,441 |
1,158,588 |
Old Saybrook |
2,627,090 |
191,301 |
79,412 |
109,981 |
189,393 |
Orange |
2,337,660 |
181,512 |
174,499 |
0 |
174,499 |
Oxford |
3,103,651 |
192,002 |
205,423 |
0 |
205,423 |
Plainfield |
5,777,047 |
386,438 |
171,458 |
209,863 |
381,321 |
Plainville |
5,345,958 |
115,000 |
234,962 |
488,333 |
723,295 |
Plymouth |
4,475,290 |
229,123 |
212,077 |
75,056 |
287,133 |
Pomfret |
1,523,225 |
97,429 |
167,078 |
56,520 |
223,598 |
Portland |
2,878,669 |
165,632 |
77,169 |
62,165 |
139,334 |
Preston |
2,315,739 |
121,509 |
26,895 |
31,810 |
58,705 |
Putnam |
2,750,844 |
241,816 |
101,288 |
139,972 |
241,260 |
Redding |
2,792,127 |
109,312 |
116,586 |
18,904 |
135,490 |
Ridgefield |
8,890,825 |
561,307 |
417,716 |
0 |
417,716 |
Rocky Hill |
4,096,942 |
305,011 |
111,263 |
81,961 |
193,224 |
Salem |
1,601,285 |
69,000 |
87,154 |
28,489 |
115,643 |
Salisbury |
624,327 |
0 |
0 |
0 |
0 |
Scotland |
431,207 |
0 |
0 |
35,624 |
35,624 |
-Continued-
DISTRICT |
Total Special Education Expenditures |
Federal IDEA Part B Grant |
State Special Education Grants | ||
Excess Cost |
State Placement |
Total State | |||
Seymour |
3,907,413 |
422 | |||