Expert briefs Ways & Means on special-education funding in potential shift to foundation formula

Professor Tammy Colby, principal researcher at the American Institutes for Research, briefed the Ways & Means committee on the design choices and implementation risks of funding special education within a proposed statewide foundation formula.

Colby told the panel that “Special education services are authorized essentially by federal law, the Individuals with Disabilities Education Act,” and that the law creates an entitlement for eligible students whose needs are specified in individualized education programs, or IEPs.

Nut graf: Colby laid out the trade-offs lawmakers will face if Vermont moves from the current census-block grant model to a weighted foundation formula: how the state defines the formula’s base will change what weights must be to cover IEP-related costs; data gaps limit precise weight-setting; and the state must guard against incentives that push students unnecessarily into IEPs or more restrictive placements. She also flagged rapid growth in Vermont’s extraordinary-cost reimbursements as a question lawmakers should investigate before adopting a new funding structure.

Most important points

- Federal framework and constraints: Colby said federal law (IDEA) makes special-education services an entitlement and imposes conditions that states must follow when they accept federal funds, including maintaining at least the same level of State financial support year to year (maintenance of financial support). She emphasized that a state funding mechanism cannot create…