Funding Type Description
|Flat Grant Fixed amount of funding per student, which can vary by type of student or
type of placement Since funding is based on the number of students, there is a strong
incentive to identify or label students and assign them to lower-cost placements.
Student Each student is assigned a weighted value depending on individual
needs. Funding is based on weighted value times the amount of regular education aid.
Encourages identification and labeling of students, particularly for those with higher
weighted values, while minimizing district expenditures.
|Percentage Funding is based on a percentage of program costs up to 100 percent. Little
incentive to control costs if 100 percent of program costs are reimbursed by the state.
The greater the local share of costs, the more incentive to reduce costs.
Costs Reimbursement are for costs incurred over and above the cost of
regular education. Little incentive to control costs if all excess costs are reimbursed by
the state. The greater the local share of costs, the more incentive to reduce costs.
|Unit Funding amount is fixed for each classroom with a given number of students.
Creates incentive to minimize class size in order to qualify for the maximum number of
|Personnel Aid is based on personnel costs. May encourage greater employment of
|Resource Cost Funding is based on estimated cost of resources needed for a program.
Encourages greater use of services and employment of personnel.
from William T. Hartman, State Funding Models for Special Education, Remedial and
Special Education, and "Policy Effects of Special Education Funding
Formulas", Journal of Education Finance.)