DOCUMENT RESUME ED 391 270 EC 304 519 AUTHOR Verstegen, Deborah A.; McLaughlin, Margaret J. TITLE Toward Mnre Integrated Special Education Funding and Services. INSTITUTION American Institutes for Research in the Behavioral Sciences, Palo Alto, CA. Center for Special Education Finance. SPONS AGENCY Special Education Programs (ED/OSERS), DC. PUB DATE 95 CONTRACT H159G20002 NOTE 9p.; For Policy Papers on which these articles are based, see ED 381 933 and ED 385 049. AVAILABLE FROM Center for Special Education Finance, American Institutes for Research, P.O. Box 1113, 1791 Arastradero Rd., Palo Alto, CA 94302-1113; e-mail: [email protected] (free). PUB TYPE Collected Works Serials (022) Viewpoints (Opinion/Position Papers, Essays, etc.) (120) JOURNAL CIT CSEF Resource; Fall 1995 EDRS PRICE MF01/PC01 Plus Postage. DESCRIPTORS Compliance (Legal); Cooperative Planning; Cooperative Prozrams; *Delivery Systems; *Disabilities; Educational Change; *Educational Finance; Elementary Secondary Education; Federal Government; *Financia! Policy; Government Role; *Inclusive Sch6ols; *Regular and Special Education Relationship; School Districts; State Government; Student Placement IDENTIFIERS Individuals with Disabilities Education Act ABSTRACT This newsletter theme issue presents two separate articles: (1) "Toward More Integrated Special Education Funding and Services: A Federal Perspective" (Deborah A. Verstegen) and (2) "Toward More Integrated Special Education Funding and Services: A Local Perspective" (Margaret J. McLaughlin). The first article discusses results of a study of the fiscal requirements of federal special education policy. The study identified options for reform and attempted to cross-validate information from interviews with approximately three dozen policymakers, scholars, and federal and state officials. Sixteen specific recommendations for fine-tuning the Individuals with Disabilities Education Act are listed. The second article focuses on the lack of coordination across integrated programs at the classroom level; identifies three collaborative models; describes various administrative mechanisms to promote flexibility and consolidation; and considers challenges to greater program consolidation such as a shortage of bilingual teachers, requirements of categorical programs, and human factors. The importance of local efforts as well as federal and state policy changes in fostering program consolidation is stressed. (DB) U.S. DEPARTMENT OF EDUCATION Office Of Educational Research and improvement EDUCATIONAL RESOURCES INFORMATION /CENTER (ERIC/ This document has been reproduced as received from the person or organization originating it. Minor changes have been made to improve reproduction Quality. t Points ot view or opinions staled in this docu- ment do not necessarily represent official he OERI posdion or policy CSE1:resource Center for Special Education Finance Fall 1995 Toward More Integrated Special Education Funding and Services: A Federal Perspective Deborah A. Verstegen, University of Virginia O ver the past two decades, under law and practice that may be neces- Key Issues the provisions of the Individuals sary to enhance the Act and fine- General questions posed for the study with Disabilities Education Act (IDEA), tune it for the 21st century. included the following: significant increases have occurred in This article discusses the results Are there barriers in federal law or the access of students with disabilities of a study designed to address is- practice that discourage the appro- into special education programs and sues specifically related to the fiscal priate inclusion of children with dis- related services in public elementary requirements of federal special ed- abilities into the general education and secondary schools across the ucation policy. A review of the classroom? nation. More recently, attention has scholarly literature and testimony What options are available to focused on the environment in which presented at hearings on the reau- reduce fragmentation and foster more programs are provided and the out- thorization of the IDEA were exam- inclusive programs for exceptional comes students with disabilities ined and used to develop a prelimi- children and youth when appropriate, achieve. As lawmakers, educators, nary catalogue of options for particularly as related to fiscal account- and others examine these and other reform and to cross validate infor- ability requirements under the IDEA? emerging issues under the aegis of mation from approximately three What should be the role of special the reauthorization of the IDEA in dozen interviews conducted with education in the education reform Congress, numerous questions are policymakers, scholars, and federal movement and Goals 2000 initiative? being raised concerning changes in and state officials. A Call for More About CSEF Integrated Programs The Center for Special Education Finance was established in 1992 to address a Based on a wealth of research, as well comprehensive set of fiscal issues related to the delivery and support cf special as the best thinking of a number of education services to children throughout the United States. CSEF's mission, as interviewees, this study explored a well, is to provide information needed by policymakers to make informed decisions full gamut of federal options for more regarding the provision of services to children with disabilities, and to provide coordinated programs for excep- opportunities for information sharing regarding critical fiscal policy issues. tional students aimed at enhanced outcomes from "do nothing" to the In this issue full incorporation of the IDEA into a single federal block grant. However, Toward More Integrated Special Education Funding it seems fairly clear from study and Services: A Federal Perspective findings that neither of these extremes 1 Toward More Integrated Special Education Funding is likely to be the most effective or and Services: A Local Perspective desirable, but rather that some middle 2 CSEF News and Update course of action is needed. 6 CSEF Resources and Publications 7 (continued on page 4) Feature Toward More Integrated Special tional continuity. Some schools have special teachers come into regular Education Funding and Services: classrooms to work with identified students or provide specialized A Local Perspective services in an after-school program. Other schools organize a student Margaret I. McLaughlin, University of Maryland study team or a similar support team, Institute for the Study of Exceptional Children and Youth including regular classroom teachers and categorical specialists, to provide support to individual teachers regard- ing specific students. Team teaching model collab- The segregation and fragmentation of educational exper- oration amor,, teachers who instruct heterogeneouc groups of students to iences for students receiving services through state and provide extra assistance in a regular .-ederal categorical programs, such as Title I of the Improv- classroom and reduce special educa- ing America's Schools Act (IASA) and Part B of the Individuals with tion referrals. In Massachusetts, "support specialists" work within Disabilities Education Act (IDEA), are issues of increasing concern classrooms with individuals or small to program administrators and educational policymakers. groups who need academic help. Some of the students are eligible for The lack of coordination across pro- categorical programs; some are not. gram, Restructuring Schools for the grams at the classroom level and, the All teachers in the building collabo- Integration of All Students, to support lack of strong evidence to support the consolidation efforts in seven school rate, communicate, and divide class- efficacy of pull-out instruction have districts. Maryland does not have a room responsibilities. prompted school administrators to specific statewide effort, but several Learning resource center model examine new models of collaboration a center staffed by resource specialists local education agencies have de- and consolidation to create more signed programs to promote greater funded by various categorical pro- integrated programs for students collaboration. Twenty-two state and grams where students come for short- considered to be at risk. In addition, local program administrators in these or long-term assistance regardless of recent federal legislation (such as states were interviewed about the program eligibility. This model is used degree of program consolidation Coals 2000: Educate America Act, the in some California districts and sever- occurring in their schools. The study School-to-Work Opportunities Act, and al other states. Originally created for IASA) contains specific provisions for results identify some of the strategies students identified as learning dis- waivers of certain federal statutory being used to promote these new abled, the centers have expanded to and regulatory programs in order to models, as well as issues or barriers serve students with a range of short encourage greater state and local to achieving greater collaboration. and longer term academic needs. flexibility and innovation in their Although students are "pulled out" of Collaborative Models school improvement efforts. regular classrooms, the centers require Local administrators reported using a collaboration across categorical pro- Local Trends and Issues variety of collaborative models, grams, as well as between these pro- To begin to identify local efforts to including the three described below. gram specialists and the general consolidate or blend federal and state Almost every administrator spoke of classroom teacher. Additionally, the categorical educational programs, an the need to stop pulling students out co-funding of staff positions facilitates exploratory study was conducted in service to multifunded students. of classes and to find ways to supple- California, Maryland, and Massachu- ment core instruction to meet individ- Program Administration setts. Since the early 1980s, California ual students' needs. has had a major initiative called Every Teacher collaboration model Districts are clearly moving toward greater collaboration among teachers Student Succeeds (ESS) to consolidate categorical teachers instructing only state categorical programs. Massa- and a greater emphasis on providing eligible or identified students but chusetts has a five-year grant pro- supplemental education and support working together to ensure instruc- 2 the resource CSEF Feature eligible students in the classroommd number of languages spoken in the within the context of regular class- lasroom. state compensatory education monies. rooms. Efforts to create more flexi- Program audits and the "non- bility tend to be focused at the school Cimsolidated grants application, supplanting" requirements of cate- level, while program administra- require various program directors to tion and fiscal management remain develop service delivery proposals gorical programs Constraining largely separate in the districts. collaboratively. Most California collaboration is the fear of audits, Interviewees described a karietv of school districts use this process, but particularly of Title I programs, and administrative mechanisms to pro- few actually mingle funds and only the regulations inherent in categorical programs, even though the need for mote flexibility and consolidation. limited staff collaboration is occurring in many districts. The application is some regulation is widely acknowl- One is use of the School Improve- seen as only a first step, as was report- ment Plans (SIP), typically developed edged. through consensus of principal and Human factors ed in Massachusetts, but the process I laying pro- staff, parents, and community mem- reportedly creates greater school-level gram leadership and an advocate for bers. District administrators use SII's collaborative programs "at the top" collaboration. to encourage more innovative uses are critical for success. Barriers to In California a coordinated compli- for school resources. They believe the ance review is conducted every four effective consolidation include a lack process works only if schools are years by a team of program staff to of knowledge of program regulations; permitted to use resources flexibly, a tendency for "turf guarding"; examine all of the district's categorical but are also required to develop programs and to model collaboration strong advocacy for particular pro- consolidated staffing plans and other and cross-program communiCation. grams; deficits in teacher motivation, strategies that reinforce a climate of certification, and qualifications; and Broader wstructuring initiatives, like collaboration. California's ESS, also provide a frame- fear among general educatOrs that special education had power to "take work for districts to engage in a Schoign,ide Title I programs, using models like those described above or comprehensive planning process to over" consolidated programs. a school-based consolidated budget ensure that all students are learning Conclusions process, were the easiest to involve in the state's core curriculum. consolidation, according to inter- Neither federal nor state policy Challenges to Program viewees. Although staff positions changes designed to foster more Consolidation may come to the school funded by a program consolidation are sufficient. specific budget, they can be used to Administrators identified several Local efforts require grass roots support a collaborative teaching issues that pose challenges to greater leadership and a commitment to model. Local dist ict administrators program consolidation: change on the part of district and school building leadership. Consolidation of programs typi- Having program leadership and an cally means that human resources advocate for collaborative programs can be used more flexibly, but funds are rarely mingled with district or "at the top" are critical for success. school budgets. Increasingly, district accountability is focused less on Multifunded students were relying on the permission of ensuring how teachers spend their Concep- state-level program administrators to tualizing the flow of resources to these time than on ensuring that students develop these more collaborative students remains difficult without a are making progress or are receiving models. comprehensive redesign of service specific supplementary services. programs. This, in turn, creates the A replacement model, using a vari- ety of resources to staff a classroom need to examine other policies, such with two teachers, was approved by as teacher certification, which create the federal Title I administration for barriers to program flexibility. This article is based on CSEF Policy Maryland. In some Maryland dis- Shortage of bilingual teachers Paper No. 5, Consolidation of Special tricts, one teacher is locally funded Enabling bilingual students to access Education Funding and Services: A and the second is funded by Title I the full curriculum is severely affected Local Perspective, by Margaret I. monies, based on the number of Title I- by this shortage and by the increasing McLaughlin (March 1995). 4 Fall 1995 3 Cover Story FEDERAL PERSPECTIVE (continued from page I) set of fragmented, uncoordinated most part, resulted in disjointed, rather A summary of specific recom- funding and service models to a new, than unified, schooling systems. mendations for finetuning the IDEA, more unified model of provision. Fiscal accountability provisions re- suggested by respondents to this Some argue that no changes in fed- lated to categorical aid programs are study, appears in the table below. eral statutes, regulations, or guidelines seen by others as providing obstacles Overall, a consensus was reported are needed because all of the flexibility to greater integration and improved that special education reform should required is already in place, if state and outcomes for all students. Finetuning be, and in fact is, integrally tied to local decisionmakers just seek it out the full set of accountability stan- changes occurring in the entire edu- and make full use of it. However, dards under current law, in which the cation system. Given the new con- while examples of school districts with learning requirements of special structs of high quality education integrated, unified service provision needs students are more fully concep- standards for children at can be found under extant rules and tualized and aligned with the needs all all schools, intervieWees considered regulations (McLaughlin, 1995), it is of all students, may provide one an- what steps the federal government clear that the current provisions and swer to this problem. Augmenting ac- might take to move from the current -tate and local practices have, for the countability models with updated Recommendations for More Integrated Funding and Services a Maintain the fundamental objectives of the IDEA as stated in statute, but finetune the Act to meet the requirements of the information age and global economy. Reflect a unified national vision of reform in policy, rules, and regulations across programs and finances, and across the diverse set of federal actors impacting localities, including those in policy, programs, auditing, and monitoring. a Clarify and emphasize the provisions of current law that allow localities to integrate and coordinate programs and services for students with disabilities to the maximum extent possible, but do not blend funding streams That is, maintain categorical aid; do not provide block grants. Consolidate selected categorical aid programs under the IDEA to broaden their scope within the parameters of current law, such as the discretionary program authorities Provide an authoritative and definitive review of all current accountability and monitoring requirements related to the IDEA that impact localities, and determine what is and what is not required by law and what is permissible regarding local flexibility. Disseminate results broadly. Review the "maintenance of effort" provision and consider changing the required level pi &foci to 90 percent rather than 100 percent, under certain specified conditions (e.g., for small school districts), or allowing adversely affected districts to seek an exception to this provision. Determine and clarify, through policy guidance, rules, or regulations, the extent of flexiblity in the "supplement- not-supplant" fiscal accountability provisions; apply these requirements consistently. Provide written guidance or rules and regulations on the "incidental benefit rule" to clarify what and when special education services, personnel, materials, and equipment are permitted to be used for non-special education students. 4 the CSEF resource Cover Story sphere needs to be created in which in highly fragmented, segregated systems that include a focus on peda- these practices are clearly fostered services in the vast majority of school gogy and results, but maintain the and encouraged, across the diverse current input standards, hay( also systems across America. Conversely, set of actors involved with national a single federal block grant is feared been urged, as have clarifyirq; and because this extreme version of disability policy, and at all levels of broadening fiscal requiremen -s under current law. blended funding may cause the the system. important guarantees that the indi- A Range of Federal Options vidual categorical laws were designed To respond to these concerns will to protect to disappear. Rather than a require some changes in direction at radical change in law, it seems that the federal level. What form should what is really needed is a shift in This article is based on CSEF Ptdicy these changes take? While the current emphasis or direction under the Paper No. 0, Cmisolidation of system may allow the needed flexibil- current provisions of the IDEA. Special Education Fundins and ity for greater local integration and Beyond tolerating integration and Services: A Federal Perspective, by coordination, in fact it has resulted coordination, a new policy atmo- Deborah A. Verstesen (July 1995). Reinstate the fiscal data collection provision that was repealed in the 1990 IDEA Amendments, and report fiscal information to Congress annually. Develop and report linkages between cost indicators and pedagogical practices that enhance outcomes for exceptional children and youth. Allow a set-aside of 5 to 10 percent of assistance under the IDEA to bridge services within education or across ec, -ation and other agencies, to be used at local discretion. a Pmvide adequate federal gap between aid to close the authorizations and appropriations. Encoui agc :;tatc3 to (a) broaden special education teacher certification categories, (b) review SEA organization with attention to noncategorical organizational arrangements, (c) review and improve their special education finance systems and programmatic policies to insure that incentives are not provided for more restrictive placements, and identify state versus federal rules and regulations for special education and report this information to localities. (Ol Design, disseminate, and provide training in new models of accountability that include process and outcome accountability (but do not replace input accountability) to direct attention to results in education and emerging new practices and pedagogies for students with disabilities educated in general classroom settings. Develop national standards regarding the inclusion of children with disabilities in statewide assessments and reports. Collect and report the extent of participation and outcomes by state, and the criteria used to determine and accommodations. permissible exclusions Provide a statement in the purposes section of the IDEA to reiterate that students with disabilities are full participants in state and local education reform and the Goals 2000 initiative. Facilitate the full inclusion of exceptional pupils into the broad national discussion and debate over what all students should know and be able to do to achieve the national education goals and the corresponding and relevant content, performance, and opportunity-to-learn standards that are needed to achieve these upgraded outcomes. Fall 1995 5 News and Update CSEF State Studies Continue c ince the last newsletter, CSEF completed its study of special education CSEF Staff costs and revenues for the Massachusetts Department of Education and Co-directors initiated work in Missouri. lay C. Ch,mbers. Thomas 13. Parrish Manager of Dissemination/Editor Massachusetts lean NI. Wohnan As a result of Massachusetts' Education Reform Act of 1993, state funding Graphic Design & Production for special education changed from a system of weights related to student Brian I lilton placement to a "census" system based on the overall population of students Staff in the state. CSEF conducted this study to provide policvmakers with lxtlac Duehas, Christine biikido, information about the patterns of decisionmaking and resource allocation Deborah Montgomery, Viviane related to special education services in the state as a result of the recent Schaller. Robert Vergon, Ann Win reforms..\mong the key findings: Schools spending proportionately moi.2 on interated resource programs is Advisory Board Members aspect ot implementing an mclusionary one show no model service meaningful difference in the overall level of special education budgets, Mr. B/Joseph Ballard even when analysis controls for the type of school, type of district, or Colwell fOr Exceptional Children alternate measures of community wealth. Dr. Stephen Chaikind Gallaudet Universitu. The additional special education funding generated by the new state School of Management funding formula, combined with federal revenues, falls short of the Mr. Robert Feir estimated special education expenditure. Expenditures for special edu- MO Pennsylvania cation students served within internal programs exceeded revenues by more than 20 percent. Dr. Martha J. Fields National Association of State Despite the adoption of a census-based funding approach being applied Directors of Special Education to the vast majority of special education children, Massachusetts still Dr. John Heskett maintains separate funding provisions for private residential placements. Missouri Department of Education Thus, there continues to be a fiscal incentive to place certain categories of Dr. Margaret McLaughlin special education students in these separate placements. Institute for the Study of Exceptional Children and Youth Missouri Ms. Celane McWhorter In March 1995, the Missouri State Board of Education established the State United Cerebral Palsy Special Education Finance Committee to consider a range of issues including Ms. Irina 0,her the goals and cost efficiency of special education programs. CSEF Co-director Consultant Tom Parrish has been working with the committee in considering possible Dr. Virginia Roach revisions to Missouri's special education funding formula. In addition to pro- National Association of State viding a conceptual framework for considering finance reform and sharing Boards of Education federal and state perspectives on reform, Tom has facilitated the committee's Mr. Robert Van Dyke attempt to formulate concrete policy alternatives. Council of Administrators ot Special Education During its deliberations, the committee strongly considered moving away from its current resource-based funding system which reimburses districts Dr. Edard (Lee) Vargas at a set rate for specified staff and a set rate for homebound and contractual Santa Ana Unified School District, California services toward a "census" system that is based on total district enroll- ments. However, in December 1995, the committee decided to adapt the current funding system to better suit the needs of the state's schools and its students with disabilities. (continued on page 8) 6 the CSEF resource BEST COPY AVAILABLE 7 _ Resources and Publications Publications on the Horizon Upcoming Policy Papers Update of State Special Education Finance Systems CSEF will soon release two new policy papers on issues related to special education funding policy and reform: Two years ago CSEF issued a The Future ot Special Education Finance, by Thomas B. Parrish, Co-director summary of state funding systems, of CSEF, will focus on issues related to the upcoming reauthorization of based on survey information the IDEA, including state finance issues affecting future policy, and the compiled for 1992-93. Staff, with need to develop more results-based accountability systems. the assistance of consultant Fran E. O'Reilly, have completed a new Cost-Effectiveness of Instructional Support Teams in Pennsylvania, by William T. Hartman and Todd A. Fay, Pennsylvania State University, survey of state directors of special will describe an innovative response to current fiscal and programmatic education, and are presently challenges in special education, which has been adopted in many compiling the updated information. states iweferral intervention. The paper will also examine the cost- It will be available from CSEF effectiveness of Instructional Support Teams adopted in Pennsylvania. during Spring 1996. State Analysis Series Launched rr o share the results of our work with individual states, CSEF recently To Order CSEF Publications introduced the State Analysis Series of papers. While CSEF Policy Papers focus on broad issues related to special education finance and program reform Copies of most CSEF publications at various levels of governance, the State Analysis Series includes profiles (or can be ordered at no cc..,t. Policy case studies) of state special education finance reform based on interviews papers can be ordered for $12.001 conducted with state special education administrators, findings of state cost copy or $60 for a complete set of analyses and resource allocation studies conducted by CSEF or other seven papers, including postage and researchers contracted by CSEF, and other state-relevant reports. Featured handling. states, thus far, include Kentucky, Oregon, Pennsylvania, and Vermont. For an annotated list of CSEF products and an order form, see Six papers have been released and are available from CSEF: CSEF Publications brochure. If you would like to order any publications A Profile of Special Education Finance Rcform in Oregon or be included on our mailing list, A Profile of Special Education Finance Reform in Vermont return the order form or contact The Politics of Special Education f inance Reform in Three States CSEF. (Oregon, Pennsylvania, and Vermont) Center for Special Education Finance Impact of the Koaucky Education Reform Act on Special Education American Institutes for Research Costs and Funding P.O. Box 1113, 1791 Arastradero Road Impact of the Kentucky Education Rcforni Act on Special Education Palo Alto, CA 94302-1113 Programs and Services: Perceptions of Special Education [Directors Phone: 415/493-3550 A Case Study of "Supported Education" in Oregon: Resource FAX: 415/858-0958 Implications of Inclusion e-mail: [email protected] thi,, series, including profiles of CSEF plans to issue additional papers ii special education reforms in Florida, Massachusetts, and Pennsylvania. 3 Fall 1995 7 Resources and Publications New Policy Paper Explores Linkages MISSOURI (c(»Itin fled from page h In addition, the Committee made Between State Funding Formulas a series of legislative recommenda- and Separate Placements tions to: ensure more adequate funding of SEF has just issued Policy Paper No. 7, State Special Education Funding ancillary special education person- Formulas and the Use of Separate Placements for Students with Disabilities: nel who work for districts under Exploring Linkages, by Fran E. O'Reilly, CSEF consultant. A preview of this contract and the provision of ex- paper follows. ceptionally high cost services for students with severe disabilities Special educators and policymakers have increasingly focused on the need to meet the least restrictive environment (LRE) requirement of the IDEA promote the approval of innova- tive service delivery syst:s that and to in,nlement more inclusionary educational practices. In addition, a growing ni.rnber of states have been enacting special education tinance and may involve waiving state regu- program retonns that often include changes in the special education funding lations formula and in;reased flexibility in decisionmaking at the local level. Within allow the Special Education Finance this context, O'Reilly explores the relationship between alternative types of Committee to continue to study state funding formulas and the use of separate placements for students with funding alternatives for special disabilities. The paper also identifies other characteristics of states that might education be associated with the degree to which they use separate placements for the delivery of special education services. Results are based on analyses of state-level data reported by the Office of Special Education Programs (OSEP), CSEF survey data on state funding systems, and interviews with state special education administrators. The CSEF Resource is published by the Center for Special Education Finance (CSEF) at the American Key Findings Institutes for Research (AIR) Although state funding formulas may have son' influence on the in Palo Alto, CA. CSEF is placement of students with disabilities, this relationship is "only funded by the Office of one piece of a complex puzzle that includes a variety of other Special Education Programs factors." (llo single type of funding formula was found for states (OSEP), U S. Department of that use separate placements the most.) Education, under a five-year cooperative agreement One variable found to have a relationship to the use of separate #H159G20002. The opinions placements is population density that is, states with higher expressed in this newsletter population density tend to use separate placements to a greater are those of CSEF and do not extent than states with lower population density. necessarily reflect the views of the U S. Department of Changes to the state funding formula alone are unlikely to create Education or our network of dramatic shifts in the placements of students with disabilities in advisors and professional the absence of other programmatic changes, such as staff training organizations. and support. AMERICAN INS1'1117ES FOR RESMRCI I Center for Special Education Finance (CSEF) 1791 Arastradero Road, P.O. Box 1113 Palo Alto, CA 94302-1113