Systemic Inequities and Cross-Subsidization: Special Education Financing in Michigan

• In Event: Equity, School Finance, and Educational Reform

Abstract

Since the implementation of IDEA in 1975, a large portion of educational spending has been dedicated to students with special needs. This study examines special education funding in the State of Michigan, examining two related issues: 1) the possible existence of encroachment or cross-subsidization, where funding intended to benefit general students is instead being redirected towards special education; 2) the significant special education spending disparities among different school districts. Results show that a significant portion of special education spending, about 25%, must come from a district’s general fund, funds designated for the general student population. Large variations in per pupil spending exist, related to a school district’s property wealth and reinforced by special education financing rules.

Authors

• Margaret C. Jalilevand, Michigan State University

• Michael Conlin, Michigan State University