Examining the Cost of Special Education
Authors: Banks Joanne 
Published: October 2020

Internationally, debates about how students with disabilities are resourced in mainstream education are complex. Spiraling costs have resulted in many funding systems calling for ‘cost control’ or systems of accountability for how funding and resources are distributed. Although inclusive education policies have created closer links between general and ‘special education’, the funding mechanisms underlying these systems still tend to remain administratively separate. The reasons for this are often historical but also relate to the consistently higher cost associated with resourcing students with disabilities compared to their peers in mainstream education. The increase in the number of students with disabilities now means that many countries are struggling to keep these costs within budget while maintaining inclusive education practices. A tension exists between those who think that students with disabilities are under-resourced, with a possible crisis emerging as schools try to cope with the increased demands, and others who argue that inclusive education cannot be achieved by simply increasing funds. The latter group focuses on the quality of leadership and the teaching staff in schools that brings about inclusive practices. The type of funding mechanism is important, and is closely linked to inclusive education. Research shows that the way in which funding and resources are allocated to students with additional needs in mainstream schools can impact the prevalence of students with a disability and inclusive practices in that school. There is little or no consensus on the most inclusive or cost-effective funding model. As a result, reform of existing models continues across different national contexts. This high level of activity is often related to a growing awareness by governments of the financial incentives and disincentives of various funding models, concern over the rising costs of special education, and the need to fulfill policy commitments to inclusive education. Internationally, funding is allocated in various ways. Input funding has traditionally been the most common funding model used, in which students with disabilities or their parents receive individualized funding according to the type of need or level of support required. The increasing prevalence of students with disabilities in mainstream education, associated rising costs of resourcing these students, and the high administrative burden of individual assessment, diagnosis, and support have led to the use of various systems that replace the sole use of input funding in mainstream education. Throughput funding is now the most commonly used funding model and is often used alongside a smaller input system. In the throughput model, block grants are provided to schools or local authorities based on certain weighted characteristics, such as the sociodemographic profile of the school or area. The output funding model, based on student achievement or learner outcomes, is often part of a funding formula in which student achievement is recognized. Each funding model has advantages and disadvantages and all claim to support inclusive education. Often forgotten in this funding debate, however, is the cost and role played by other forms of provision, such as special classes and schools. This is despite an increase in this type of segregated provision in countries with otherwise inclusive education. Critics of the continued use of segregative settings argue that they serve as an escape route for students with disabilities in systems that are struggling to implement inclusive practices in mainstream education.