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Poster #28 - Modeling the True Cost of Inclusion: New Evidence on Early Childhood Services for Children with Disabilities

Friday, November 6, 5:00 to 6:30pm, Property: Boston Marriott Copley Place, Room: Salon EFG

Abstract

This research was conducted to meet dissertation research requirements. As states expand mixed‑delivery early childhood systems and strengthen alignment with the Individuals with Disabilities Education Act (IDEA), cost modeling has become an increasingly important tool for designing equitable and sustainable funding structures. Yet, despite significant growth in the use of Early Intervention (IDEA Part C) and Early Childhood Special Education (IDEA Part B, ages 3–5) cost models nationwide, wide variation persists in whether and how states account for the costs of serving children with disabilities and special needs. A national review of 25 state and local cost model reports completed between 2024 and 2025 found that only nine models included explicit variables or cost components related to children with disabilities, while many made no mention at all of how IDEA‑related services or inclusion supports were incorporated into their funding assumptions.

This session presents findings from that review, highlighting significant inconsistencies in states’ treatment of special education costs. Some states—such as Delaware, Oregon, and Richmond—include detailed assumptions related to instructional aides, inclusion materials, or specialized staffing. Others, including Colorado, D.C., New Mexico, and several additional states, provide no information at all on how children with special needs factor into their models. Still others acknowledge service needs but offer no cost estimates or incorporate IDEA supports only indirectly, such as through market‑rate alignment or general staffing ratios.

Across states, the absence of transparent and consistent assumptions has significant implications. Cost models influence subsidy and preschool rate‑setting, workforce planning, and the design of sustainable inclusion policies. When IDEA‑related costs—such as therapies, specialized staff time, assistive technology, and inclusive classroom supports—are omitted, states risk underfunding the true cost of providing legally mandated services, thereby limiting access to inclusive preschool options and contributing to persistent disparities for children with disabilities.

Taken together, this work underscores a critical opportunity: strengthening the inclusion of IDEA‑related costs in early childhood cost models is essential for building accurate finance systems, designing equitable funding formulas, and ensuring that young children with disabilities can access high‑quality, inclusive early learning environments.

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