Audit suggests special education funding overhaul

Posted at: 08/22/2013 7:27 AM
Updated at: 08/22/2013 7:28 AM
By: The Associated Press

SANTA FE (AP) -- Legislative auditors are recommending New Mexico revamp special education financing because the current system creates incentives for schools to gain more funding by identifying students for greater services.
About $500 million is spent annually on special education, but a report issued Wednesday by Legislative Finance Committee staff said schools are penalized if they find less costly ways of helping students.
The state provides aid based on a school's determination of the services required for students with disabilities, with more money for those with greater needs.
The report recommends basing special education aid on a school's total enrollment.
Auditors said if funding was based on a national average of special education students, about 15 school districts would lose money, including $8 million for Albuquerque, and aid would increase for 26 districts.

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