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Shift in Special Ed Money Worries Advocates (MO)

May 7, 2010

When an influx of federal stimulus money for students with disabilities was announced last year, many touted the $11 billion as an unprecedented opportunity to improve special education.

But as school districts prepare to report their spending of that money to state education officials, some special education advocates fear a provision in federal law has cheated the very students for which the money was intended.

Across the country, school administrators have taken advantage of a rule that allows districts to use the influx to reduce the amount of local money a district spends on special education.

"It’s an atrocity," said Laura Kaloi, public policy director for the National Center for Learning Disabilities. The money was meant for students receiving special education, not as a way for districts to cut back on how much they spend on those students, she said.

Missouri and Illinois education officials expect many school districts to use the adjustment, especially those hard hit by declining tax revenue and dwindling state aid. And at least three districts in the region have done so. But a more complete picture won’t be reported to state departments until June.

In St. Louis city and St. Charles and Jefferson counties, the adjustment has the potential to allow districts to move a total of about $12 million away from special education. Every Missouri school district that received special education stimulus money had the opportunity to shift funds. All but 164 of Illinois’ 869 districts were eligible for the adjustment.

"You always have high hopes when you hear there is going to be an increase. But as with all things bureaucratic, you have to wait for the other shoe to drop," said Mary Kay Savage, executive director of MPACT, a Missouri training and information center for parents of children with disabilities. "As a parent, it’s just heartbreaking that we can’t use resources in a constructive manner when we know there is a such a great need."

But those same advocates are relieved that special education spending may be more secure in St. Louis County. That’s because students with disabilities in those county school districts are served by the Special School District, which received $39 million in stimulus money.

Elsewhere, the law allows a one-time reduction in how much local money districts need to spend on special education if there is a large increase in federal money. It essentially allows school districts to divert local special education funds totaling up to half of the amount of stimulus money.

"They are able to free up a nice chunk of money to do some good things for kids. Why wouldn’t they?" said Heidi Atkins Lieberman, Missouri’s assistant commissioner for special education.

St. Louis Public Schools expects to reduce its local spending for special education by $4.1 million this year because of the stimulus money. The Francis Howell School District also moved $2 million of its special education spending into general funds. It will pay for updating curriculum, establishing a student information system, digitizing permanent student records and outfitting 280 elementary classrooms with microphones for teachers and sound systems.

"We got a big influx, but we can’t base our spending pattern on that influx," said Kevin Supple, chief financial officer for the Francis Howell School District. "It’s one-time money we are spending on one-time things."

The Wentzville School District shifted about $413,000, even though they were allowed up to $1.4 million under the provision.

Belleville Area Special Services Cooperative, which provides special education related services to 23 districts in St. Clair County, sent most of its $6.5 million in stimulus money to those districts in light of tough economic times and a state budget crisis in Illinois that has forced teacher layoffs in many Metro East schools. Some are considering using freed-up local money to save jobs.

In total, stimulus money sent to Missouri for about 129,000 special education students totals about $227 million. Illinois received $525 m illion for about 320,000 special education students.

The way stimulus money was spent on special education also has been criticized. Some of the purchases include Smartboards, software, computers, equipment and teacher training.

Savage said the money would be better spent on programs to address pressing problems such as dropout and graduation rates of special education students.

Ann Borgmeyer, Francis Howell’s director of special education, said the district worked with teachers to spend the money wisely in a way that would benefit all students.

"When someone gives you $4.5 million dollars, you don’t want to complain about anything," she said. "I think that we have done the best we can to fulfill what the money was meant for under the constraints given."

After the stimulus was approved, Missouri gave districts additional latitude in redirecting special education money to other areas. Previously, only districts that met specific state standards – such as certain graduation rates – had that option.

Lieberman said she wanted districts to have more flexibility given the amount of funding. But after the stimulus money disappears, the state will return to its strict standards, she said.

"Hopefully, most districts will use that money in a way to improve the school system that benefits all students," Lieberman said.

Advocates worry that diverting any money from special education sets a bad precedent, one that could diminish the portion of district budgets set aside for special education in future years.

But Lieberman said districts could not shake their responsibilities to meet those needs, which are spelled out in federal law.

"You have a legal obligation to provide what a child needs," she said. "You can tell us you can reduce, but you still have to meet the needs of a child."