Systemic Inequities in Special Education Financing

Since the implementation of IDEA in 1975, as spending on education has continued to grow, a large portion of that spending has been dedicated to students with special needs. This study uses a panel dataset of local and intermediate school districts to examine the complex special education funding and delivery scheme in the State of Michigan. Using taxable value per pupil as a proxy for a district's wealth, we find large inequities in expenditures per special education student based on a district's wealth and that these inequities are exacerbated by Michigan's Intermediate School District system. We also find the composition of special education students varies significantly based on the district's wealth and this composition is likely to change with changes in a district's wealth.