The Effect of School Funding on Opportunity Gaps for Students With Disabilities: Policy and Context in a Diverse Urban District

Abstract

School finance reform has recently centered on providing schools with more equitable access to resources to reduce opportunity gaps for students. Although special education is often a prominent part of larger equity conversations, special education funding is commonly excluded from school funding reform initiatives. Given the costly nature of special education programs, it is imperative that scholars and policy makers understand the effects of funding changes on outcomes for these students. In this study, we examined the effect of California’s Local Control Funding Formula, in addition to school context and student compositional characteristics, to identify changes in special education students’ achievement rates. Using a combination of publicly available data sources and local district data, we assessed differences in academic outcomes (i.e., achievement scores) between elementary students with and without disabilities in both high- and low-poverty schools, given increases in spending for special education programs.