A Profile of Special Education Finance Reform in Vermont. State Analysis Series.

This paper traces the historical context of the passage and implementation of Vermont's Act 230 in 1990, which initiated a new special education funding system to increase equity, predictability, and flexibility in program design as well as to ensure placement neutrality. Specific objectives of the funding system included increasing the use of prereferral services for children with diverse needs and the inclusion of children with disabilities in regular classes. The funding formula has three components: (1) a mainstream block grant to school districts based on total student enrollment; (2) an extraordinary service reimbursement providing compensation to districts for unusually high-cost individual cases; and (3) an intensive services reimbursement to help with all remaining allowable special education costs not otherwise covered. This paper relates this reform to special education policy, programs, and services; discusses the objectives for reform and the mechanics of the new funding system; reviews the results to date of an ongoing statewide evaluation; and presents a summary of interviews with state- and local-level constituents during the fourth year of implementation of the new formula. Contains seven references. (DB)