IT teacher and her students using laptop during computer class in high school.
The Rising Cost of Special Education: Maintaining FAPE Amid Budget Cuts and Teacher Shortages.
Special education services are a cornerstone of the American public education system, ensuring that students with disabilities receive the support they need to thrive. However, as the demand for these services grows, so does their cost—placing immense pressure on school budgets. Despite decades of promises, the federal government has failed to meet its funding commitments, leaving states and local districts to shoulder the financial burden. With federal cuts likely on the horizon and teacher shortages worsening, the future of special education hangs in the balance. Without immediate action, the laudable goals of the Individuals with Disabilities Education Act (IDEA) and the promise of a Free Appropriate Public Education (FAPE) may become unattainable.
The Growing Cost of Special Education
Special education costs have been rising steadily, driven by increasing numbers of classified students, higher costs per pupil, and the need for specialized services. According to a 2023 report by Education Week, special education now accounts for a significant portion of local education spending, with some districts dedicating up to 25% of their budgets to these services. This trend is unsustainable as federal funding falls short. The federal government initially pledged to cover 40% of special education costs under IDEA but has never contributed more than 15%, leaving states and districts to fill the gap. Given dramatic federal cost-cutting and threats to close the Education Department, federal spending on education, particularly on the disabled, is at risk.
A Bellwether report highlights the disparities in how states fund special education, with some relying on outdated census-based models that fail to account for actual needs. For example, New Jersey’s funding system has been criticized for exacerbating inequities, as detailed in a recent EdLaw Center report. These funding shortfalls force districts to make difficult choices, often cutting programs in general education to cover special education costs. New Jersey funds all schools using the statewide average. Districts with classification rates higher than the statewide average were underfunded by $378 million in 2022-23
The Challenge of Maintaining FAPE
FAPE mandates that schools provide services necessary to educate students with disabilities, regardless of cost. However, as costs rise, maintaining this standard becomes increasingly challenging. A National Center for Education Evaluation study found that special education spending per pupil is nearly double that of general education. This disparity creates tension within school budgets, leading to unintended consequences such as reduced funding for arts programs, larger class sizes, and deferred maintenance.
To address these challenges, districts are exploring efficiencies and cost-saving measures. Some have implemented co-teaching models, where special education and general education teachers work together in inclusive classrooms. Others have turned to technology, using adaptive learning tools to provide personalized support at a lower cost. However, these solutions are not without limitations. While technology can reduce costs, it cannot replace the human element of teaching.
Several groups are taking on this challenge. ED 3.0 is a gathering of professionals who share and document information with “a commitment to more personalized, competency-based, verifiable learning at the scale of the Internet,” according to director Gregory Nadeau. The group meets monthly to discuss implementing the Special Education Data Model and determine with data how to address these issues. Their meetings have led to advances such as creating Innovations in Online Education, which provides remote, high-quality instruction.
The Teacher Shortage Crisis
The nationwide shortage of qualified special education teachers is compounding the financial challenges. This shortage is particularly acute in STEM fields, where the demand for specialized instruction is high. Without intervention, the situation is expected to worsen. A report by the Empire Center warns that the lack of teachers could lead to larger caseloads, burnout, and, ultimately, a decline in the quality of services provided.
Districts have taken steps to address the shortage. For example, several states have relaxed certification requirements, allowing teachers with provisional licenses to work in special education classrooms. While this may provide short-term relief, it raises concerns about the long-term impact on student outcomes. More thoughtful strategies include offering financial incentives, such as loan forgiveness and signing bonuses, and creating mentorship programs to support new teachers.
College Admissions History Offers A Cautionary Tale
Before the mid-90s, the rules governing college admissions had two bedrock financial principles: ‘need-blind admission’, where financial need is not taken into account when making admissions decisions, and ’meeting 100% of financial need’, where colleges commit to funding the full demonstrated need (as determined by the FAFSA or the CSS Profile) for students. Both have been almost universally abandoned, with only some of the most highly-endowed colleges maintaining these commitments. ‘Gapping’, meeting only a percentage of demonstrated need, and ’need-aware admissions’, where high-need students are sometimes denied for financial reasons, are more the norm. Both FAPE and these policies were made with the best of intentions. Colleges found the sacrifice too steep to continue. FAPE is too important to suffer this fate.
The Role of Litigation and Inequities
Another pressing issue is the rise in litigation by parents who argue that their children are not receiving an ‘appropriate’ education. These cases often result in districts reimbursing families for private school tuition and transportation, further straining budgets. A New Hampshire Business Review article highlights how these costs can create volatility in school budgets, particularly in smaller districts.
There is also evidence that wealthier families are more likely to pursue litigation, exacerbating inequities. To address this, some districts are exploring the creation of in-house, out-of-district programs, which provide specialized services within the district rather than sending students to private schools. This approach can reduce costs while ensuring compliance with FAPE requirements.
The Path Forward
The challenges facing special education are daunting but not insurmountable. To maintain FAPE and ensure equitable access to services, policymakers must address two critical issues: funding and staffing. First, the federal government must not reduce funding. Second, states and districts must invest in strategies to attract and retain qualified teachers, such as competitive salaries and training and advancement opportunities.
Innovative solutions, such as shared resources, online instruction, and adaptive technology, can help reduce costs without compromising quality. However, these measures must be implemented thoughtfully to improve student outcomes. Collaboration between stakeholders—including educators, parents, and policymakers—is essential to finding sustainable solutions.
The Importance of IDEA and the Risks Ahead
IDEA has transformed the lives of millions of students with disabilities, providing them with once unimaginable opportunities. However, these gains are at risk if funding and staffing challenges are not addressed. Schools will struggle to meet their legal obligations without adequate resources, leaving vulnerable students behind.
The stakes are high. As special education costs continue to rise, districts face the prospect of cutting essential services or diverting funds from other programs. The result could be a system that fails to serve all students equitably. To prevent this outcome, policymakers must act now to ensure that every child, regardless of ability, has access to the education they deserve. The future of special education—and the promise of FAPE—depends on it.
