Special Education Funding

When we talk about equity in education, we often focus on access to opportunity, inclusive practices, or culturally responsive teaching. But behind all of that is something much more tangible and just as critical: funding. Without equitable funding, all the vision in the world can’t be implemented effectively. And when it comes to special education in Colorado, the numbers tell a story that families and educators have long known: we’re under-funding our most vulnerable students.

A Tiered System That Falls Short

Colorado uses a three-tiered funding model to support students with disabilities:

Tier A provides a base amount for each student with an IEP. Tier B adds additional funding for students with more intensive needs, such as students with autism, intellectual disabilities, or multiple disabilities. Tier C is the High-Cost Trust Fund, designed to help districts cover exceptionally expensive services.

This model should ensure that students with greater needs receive the support they deserve. But in practice, the funding rarely reaches its intended target. For example, Tier B is supposed to provide up to $6,000 per student, but in the 2022–23 school year, it only delivered about 74 percent of that amount. That shortfall matters, especially for districts trying to stretch every dollar to serve students who require intensive interventions or supports.

The Local Burden

One of the most alarming findings from the Colorado Department of Education’s 2022 report is the gap between actual costs and available funding. In that same school year, the average cost to serve a student in special education was $11,876. Yet state and federal funds only covered about 39 percent of that. That means local districts, already navigating competing demands and strained budgets, had to come up with the remaining 61 percent.

This setup creates a dangerous imbalance. Wealthier districts with robust tax bases can more easily fill in the funding gaps. But for rural and lower-income communities, the lack of resources directly impacts the services students receive. The result is that two students with the same disability can have very different educational experiences depending simply on where they live.

Learning from Other States

Compared to peer states, Colorado’s state contribution to special education is low. Other states provide more funding at the state level, which helps standardize services and reduce reliance on local wealth. Colorado’s heavy dependence on local funding risks deepening educational inequities and undermines efforts to create a consistent, high-quality special education system across the state.

The High-Cost Fund: A Lifeline with Limitations

Tier C, the High-Cost Special Education Trust Fund, is meant to help districts handle extraordinarily expensive services such as one-on-one aides or specialized placements. But according to the report, the fund is not only under-resourced, but also lacks clear criteria for how funds are distributed. That leaves districts in a guessing game, and some students may go without the full support they need because their district cannot absorb the cost.

Recommendations for Change

The good news is that the report doesn’t just diagnose the problems. It offers actionable steps:

1. Increase state-level funding to better reflect actual service costs.

2. Review the funding model regularly at least every five years to stay current with needs.

3. Update the Tier B cap and adjust for inflation.

4. Improve data collection to better understand and respond to local needs.

5. Clarify and strengthen the High-Cost Trust Fund to ensure it functions equitably and effectively.

   
   

Why This Matters

For families like mine and likely yours, this isn’t just policy. This is personal. When funding mechanisms fall short, it’s our kids who feel it. It’s the paraeducator who’s stretched too thin, the therapist who has to reduce service time, the IEP goals that become harder to reach.

As a former educator and a parent of children with disabilities, I’ve seen both sides of the table. I’ve watched teachers stretch themselves to meet student needs with limited resources. I’ve also advocated fiercely for services my child was entitled to but that a district struggled to provide.

The bottom line is this: Equity starts with adequate investment. If we want every student to thrive, especially those with disabilities, we need to fund special education like we mean it.