Superintendent Rainwater's Letter to Wisconsin's Daily Papers

Special Education Funding Needs Comprehensive Review

By Art Rainwater, Superintendent
Madison Public Schools

The approval of a $47 million increase for special education in the 1999-01 biennial budget was welcome relief for school districts. However, despite the hefty increase, local districts will still only be reimbursed for about 34 percent of the costs for the mandated programs and services. Several key questions still remain about funding special education and the Legislature needs to seriously consider an overhaul of special education financing.

In May of 1999 the non-partisan Legislative Audit Bureau (LAB) released a report detailing special education costs in Wisconsin. Its analysis clearly indicated that special education is severely underfunded by both the state and federal governments. In the 1970's Congress authorized reimbursing states at 40 percent of program costs. Last year the federal government's outlay to Wisconsin was less than 5 percent.

Prior to passage of the budget last October, state statutes required districts to be reimbursed for 63 percent of costs - for the 1997-98 school year the reimbursement rate was 31 percent. (The state budget eliminated the 63 percent reimbursement rate from statutes.) Combined, the state and federal reimbursement shortfall to districts in Wisconsin amounted to $502.5 million, according to the LAB report.

The audit also showed the tremendous growth in special education enrollment statewide between 1992-1998. In large part, the nearly 20 percent increase is due to expansion of special education criteria by the state and federal governments that opened the door to increased enrollment. About 12.5 percent of Wisconsin's students are in special education programs, slightly below the national average of 12.7 percent.

The audit stated that, "some disability and needs criteria are based on student performance and personal judgment, rather than on a clinical diagnosis," speculating that districts over-identify students for special education in hopes of receiving more financial aid. This serious allegation must be addressed. If it is happening, it must stop. But anecdotes and conjecture will not remedy the problem, if it indeed exists.

A news release issued by the governor's office the week the state budget was signed said, "While special education is a federal mandate underfunded by Washington, the governor is agreeing to additional state money to help local school districts meet the needs of these students."

The original federal special education laws crafted in the 1970's were modeled after Wisconsin's. In fact, the state has always been a pioneer in the special education arena. Both houses of the Wisconsin Legislature voted to federalize Wisconsin's special education laws (1997 Senate Bill 384) in 1998. The measure passed both houses on a voice vote - generally reserved for agreed upon bills - and was signed by the governor.

Special education expenses affect all students. Mandated programs are the first draw when school budgets are developed. State-imposed revenue limits restrict the amount of revenue school districts are allowed to raise from taxpayers. So regular education students have textbooks with outdated information, routine maintenance is forestalled to save money and extracurriculars are cut.

In even-numbered years, the non-partisan Legislative Council conducts in-depth research on select issues to prepare legislation for the session commencing after the fall elections. Committees are comprised of legislators and public members. Special education funding is ripe for overhaul and the issues should be review by a special Legislative Council study.

Over-identification of special education students, funding high cost-low incidence students (autism) and determining the state's role in funding these mandated programs and services are just a of few of the issues that need scrutiny. Our goal must be to develop a genuine federal-state-local partnership. This funding dilemma must be resolved -- for the sake of all of Wisconsin's children.