Financing Special Education in New Jersey Sponsored by the New Jersey School Boards Association By Mari Molenaar, Ed.D. and Michael Luciano

Funding Recommendations Fully fund $1.9 billion in excess costs Provide $171 million more in aid now Set a single state funding rate No extraneous factors in aid (e.g., poverty)

Educational Recommendations Invest in Professional Development –General Ed. Teacher Training on Special Ed. –Intervention and Referral Services –Multi-Sensory Phonics Based Reading –Instructional Aides Training

Analysis of Data NJ Department of Education –2005 Audit Summary –Application for State School Aid –Annual Data Reports from OSEP Survey of Districts - 51% return rate 34 District Visits 24 Exemplary programs identified

Findings Special education programs costs in NJ are over $3.3 billion per year SE per pupil costs are $16,081 GE per pupil costs are $10,077 SE costs 1.6 times GE student Source: 2005 Audit Summary

Cost Drivers Tuition for out-of-district schools Transportation to out-of-district schools Federal and State mandates Preschool autism programs Related Services increases –(speech, counseling, occupational and physical therapy) Resource programs (in-class; pullout)

Separate School Tuition Rates TypeAverage Tuition2006 Enrollment Public*$32,000-33,800 7,282 Private$44,00012,800 Educational Services Commissions Special Services School Districts Regional Day Schools * Public Separate School TypesSources: Telephone survey of public separate schools, Annual Data Report and Approved private school tuition rates

Staffing Trends : 7 students to each SE staff member 2005: 5 students to each SE staff member Special ed. preschool teachers doubled Resource teachers up 70% Related services up 25% –(speech, counseling, occupational and physical therapy) Source: Annual Data Reports to NJ Office of Special Ed. Programs

Shared Services Transportation and scheduling Coordination among programs Allocation of costs among districts Impediments to further sharing: Transportation Child Study Team services Related service providers Classes for low incidence disabilities Professional development Current Shared Services:

Revenue Sources 4% 28% 2% 9% 57% SE Share of GE Aid SE Aid Extraordinary Fed IDEA Local Taxes Not Shown: Medicaid Reimbursement 0.03% Source: 2005 Audit Summary

Trends in Funding Tiers Tier I Related Services Tier II Mild Disabilities Tier III Moderate Disabilities Tier IV Severe Disabilities, Intensive Services Per Pupil Aid 2004 $305$3,260$5,975$13,037 Students ,086108,90558,33431,556 Change in Students %-4.1%+47.5%+65.9%

YearApplications (in millions) Appropriations (in millions) Percent Funded 2002$56$1426% 2003$82$1518% 2004$110$5247% 2005$143$5236% 2006$175$5230% 2007$223$5223% Aid for Extraordinary Costs Source: Application for State School Aid

Source: Office of Special Education Programs Federal Funding Formula Base: IDEA Aid from Census: Enrollment of all students Poverty: Number of students receiving free or low cost lunched

Comparison of Poverty Rates Special Ed. vs. General Ed. Special Ed. Poverty Rate: 23.7% General Ed. Poverty Rate: 20.1% Difference: 3.6%

Funding Issues State aid funds only 34% of SE expenditures State aid was frozen at $978 million for 4 years Transportation aid was frozen for 7 years Federal covers only 9% of SE expenditures Local property taxes pay 57% of SE costs

District Visits Perspective of the Directors of Special Services

Exemplary Programs Alternative Education AutisticHSPA Prep LRE-InclusionLiteracy Multiply Disabled Preschool Disabled Professional Development Support

Financing Special Education in New Jersey Mari Molenaar, Ed.D. and Michael Luciano