Increasing the dialogue among stakeholders in New Jersey’s special education system

The U.S. Department of Education has rescinded an offer it made to school districts last summer that would have allowed them to cut special education spending in exchange for a lesser financial penalty than in the past.

The federal “maintenance of effort” clause in IDEA spending rules is intended to help protect students with disabilities from changes in services triggered by the ups and downs of public spending and politics. Violating the rules can lead to financial penalties for districts and states.

In 2011, the USDOE said in a letter to state directors that if districts lowered their special education spending for any reason, whether or not it was because of exceptions built into the law, districts did not have to resume spending at the previously higher level, and could use the lower rate of spending as their new benchmark for future special education budgeting. The move was supported by the American Association of School Administrators.

After a strong negative reaction from the advocacy community, the USDOE withdrew its letter. The new letter says the only way districts can cut spending without penalty is for the existing exceptions. One of those few exceptions to the maintenance-of-effort rule is when a district experiences an actual decrease in expenses, such as when an experienced, highly paid special education teacher retires or a high-needs student leaves a district.

Advocates nationwide worked to communicate to the Office of Special Education Programs and Congress about the inaccuracy of the initial letter.