The Future of Special Education Funding

As Kansas and Missouri work through their education budgets and consider changes to how they fund schools, special education funding is getting long-overdue attention — and the conversation couldn’t come at a more important time. 

In Kansas, special education funding is at a crossroads. The House budget proposal includes just $10 million in new special education funding, short of what’s needed to get the state back on track toward meeting its statutory goal of covering 92% of excess special education costs by 2029. 

Right now, Kansas funds special education through a reimbursement system, where districts front the money, and the state pays part of it back later. This model was originally designed to give districts flexibility, but it also introduces funding unpredictability and does not fully account for long-term cost trends. As a result, some districts struggle with budget shortfalls while trying to meet the growing needs of students with disabilities, who now make up more than 17% of Kansas classrooms. The state does provide additional reimbursements for high-needs special education students as well, subject to funding availability.

Across the state line, Missouri is in the early stages of rethinking its school funding formula, and special education funding will almost certainly be a big piece of that discussion. Currently, the state provides districts with more than 13.30% of their student population receiving special education services 75% more funding per student. In addition, the state provides reimbursements to districts with especially high-needs special education students. With more than 13% of Missouri students also receiving special education services, there’s a growing need to rethink how the state funds services in a way that meets student needs while ensuring long-term sustainability. 

All of this is happening against the backdrop of major uncertainty at the federal level. Congress recently passed a federal budget resolution that directs the U.S. House Education and Workforce Committee to cut at least $330 billion to offset tax cuts. That could significantly decrease critical federal funding for Individuals with Disabilities Act, which both Kansas and Missouri rely on to help support special education services.

Aligned has put together a new policy brief — State Approaches to Special Education Funding — that highlights how other states are tackling these challenges. As Kansas and Missouri lawmakers look ahead to future changes in school finance, we encourage them to consider the lessons learned in other states, and to think about how to build a funding system that works for all students, especially those who need the most support.

Aligned's Take: We’ll be tracking these conversations closely, so stay tuned. In the meantime, check out our new brief for a deeper dive into special education funding.