p> 1. Pupil Weights - This formula involves two or more categories of student-based funding for special education expressed as a multiple of regular education aid. In their survey of 48 states, the CSEF (1999) reported that this funding formula was used by 37.5 percent of the surveyed states.
2. Resource-based Funding - This formula is based on allocation of specific educational resources such as classroom units or teachers. Approximately 22.9 percent of the 48 states surveyed by the CSEF (1999) used this funding formula.
3. Flat Rate - Used by about 14.5 percent of the states surveyed by the CSEF (1999), this funding formula is defined by Parrish (1996) as a relatively simply formula consisting of a fixed amount of money per unit or per student.
4. Percent Reimbursement - With this formula, funding is based on a percentage of allowable or actual expenditures. This formula is currently being used by about 25 percent of states (CSEF, 1999).
The importance of proper funding formulas and what is used as the basis of allocation can be perhaps best seen in Feir's (1998) discussion of Pennsylvania's schools. Noting that Pennsylvania shifted from a full excess costs system of funding special education to a per pupil (not per special education pupil) formula prior to the 1991 92 school year, Feir reports that the purpose of the change was to save the state money, control local expenditure growth, and (coupled with programmatic regulatory changes) serve more children prior to special education evaluation in regular classes.
In an analysis conducted on data collected since the change went into effect, Feir (1998) observed that following the first three years of implementation, there was a significant cost savings for the state and local expenditure controls for many school districts. However, it is noted that some school districts were better able to take advantage of the change than were others.
Similarly, Montgomery (...