What’s the bad news?
Major concerns about the law include a change in special education funding and the size of the adjustment aid increases. The new law will distribute approximately two-thirds of special education aid on a wealth basis. Up to now, school districts have received special education aid for each eligible student regardless of community wealth. A September 2007 NJSBA study showed no correlation between disability and wealth and recommended against distributing special education funding on a wealth basis. School districts currently provide 57 percent of the cost of state and federally required special education. This provision may increase that share for many districts. The 2 percent guaranteed aid increase for 2008-2009, while better than a cut, will not cover the growth in fixed costs borne by many districts during the past six years of flat funding.
