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

2. 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)

3. 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

4. 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

5. 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

7. 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)

8. 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

9. Staffing Trends 1995-2005 1995: 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

10. 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:

11. 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

12. Trends in Funding Tiers 2000-2004 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 2004 163,086108,90558,33431,556 Change in Students 2000-2004 +26.3%-4.1%+47.5%+65.9%

13. 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

14. Source: Office of Special Education Programs Federal Funding Formula Base: IDEA Aid from 1996-1997 Census: Enrollment of all students Poverty: Number of students receiving free or low cost lunched

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

16. 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

17. District Visits Perspective of the Directors of Special Services

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

19. Financing Special Education in New Jersey www.njsba.org/specialeducation Mari Molenaar, Ed.D. and Michael Luciano