Local money for special education is declining rapidly in some counties in metro Detroit, leaving school district leaders with difficult choices about how to pay for the state and federally mandated programs.
As property values decline, tax revenue has dried up from special millages that fund programs for students with autism, visual and hearing impairments and other disabilities.
Districts may have to dip further into general education budgets to cover the costs. It is unclear which programs might be at risk, but general funds pay for everything from salaries to textbooks to athletics.
Even though special education programs are mandated, some parents said they fear the declines will bring reduced services for their children.
"I've never seen conditions like these. They're going to get worse," said Marcie Lipsitt of Franklin, co-founder of the Michigan Alliance for Special Education, a parent advocacy group.
Oakland County is facing an immediate problem -- $150 less per pupil from its millage -- and Macomb and Wayne counties are anticipating shortfalls in the next year or two.
"We've been warning them for years," said Robert Moore, deputy superintendent for finance and operations for Oakland Schools, Oakland County's intermediate school district.
"But that doesn't make it any easier."
Lisa Kotula worked closely with officials in Grosse Pointe Public Schools to line up certain special education services for her daughter next school year.
But she worries shrinking tax revenue eventually could mean fewer services to address her daughter's disabilities, which include an auditory processing problem that can make it harder for the second-grader to understand verbal instructions.
"It's the difference between my daughter learning or not," said Kotula, who was able to line up some speech therapy and access to new technology for her daughter next school year.
Across metro Detroit, countywide millages for special education are in a spiral as property values decline, resulting in less money dedicated to teaching children with disabilities.
Because special education programs generally are mandated by law, districts may have to use general education funds to cover the costs, possibly affecting mainstream programs.
Even so, parents such as Kotula worry as administrators try to come up with ways to balance budgets and make it all work.
Macomb Intermediate School District officials say they might ask voters this year to approve an increase to the special education millage. And officials with the Wayne Regional Educational Service Agency (RESA) expect they will be forced to bill districts in 2013 to cover special education funding shortfalls.
Wayne County controls special education money for programs that educate kids with severe disabilities. If the cost of the programs is more than the funding, the county can bill a district for the difference.
"Each district is going to have to struggle with how to pay its share of the bill. And it will be significant in some districts," said Kevin Magin, associate superintendent for the Wayne intermediate school district.
In Oakland County, the shortfall is hitting districts for the 2011-12 school year. Districts will be getting $150 per student less in special education funding from Oakland Schools, the county's intermediate school district.
"When you have less revenue, the obvious answer is that you cut or reduce costs," said Ken Siver, deputy superintendent for Southfield Public Schools.
But it's not that easy. A reduction in special education funding doesn't mean districts automatically cut the programs. Those programs, for the most part, are required by law, so districts may have to dip further into their general funds.
"That means there's less money for general education," Siver said.
That makes things more difficult for districts, which already are dealing with large cuts in state funding, declining enrollment and increased costs.
In Southfield, for instance, the district is laying off dozens of employees, consolidating positions and cutting salaries to deal with an expected $13-million shortfall for the 2011-12 school year.
Stimulus will be missed
Parents of students with special needs say special education programs already are affected now that the federal stimulus dollars districts received two years ago are running out.
"We're already hearing a lot of parents, even this year, who say they're facing a lot more challenges trying to obtain support for their children," said parent advocate Carolyn Gammicchia, whose son has autism, attends Utica Community Schools and takes some community college classes.
She said she would support a millage increase for special education in Macomb County, but wants assurances the Macomb ISD is working to reduce administrative costs.
Don Bollinger, an associate superintendent in the Macomb ISD, said the district has reduced positions and received concessions from employees, including teachers, administrators and bus drivers.
He said parents have encouraged the ISD to seek the millage increase, something he said will have to happen this summer or fall.
Wayne RESA already has taken steps to show local districts that it is trying to control costs. Over the last two years, the district has cut $7 million from its special education budget, trimming support services, materials and supplies. Special education staff reductions were handled through attrition, and Magin said any reductions remain within legal limitations. For instance, the ISD is increasing its computer replacement cycle from four years to six years and is consolidating teacher aide positions.
"Maybe if a class size can be 10 and they are averaging 8, you move up to the legal limit," Magin said.
The special education fund in Oakland County peaked in the 2007-08 school year with $164 million. That dropped to $139 million for the current school year and will drop to $128.6 million in 2011-12 -- a more than 20% decline from its peak.
The total cost for special education is a lot more -- $339 million in the 2009-10 school year in Oakland County -- and districts receive state and federal funding. But districts have had to supplement the cost with local dollars.
Revenue will continue to fall until the 2012-13 school year, then flatten out, said Robert Moore, deputy superintendent for finance and operations at Oakland Schools.
"We have no idea when the recovery will begin," Moore said.
One district's dilemma
The loss of $150 per student will amount to $1.1 million less funding for Rochester Community Schools, said William Mull, assistant superintendent for business.
But the district also will have to address the loss of $2.1 million in federal stimulus money for special education. Although some districts used the one-time money to cover one-time costs such as staff development, supplies and materials, Rochester opted to use the stimulus money to hire staff to handle increases in the special education population.
"The downside is that now we have these permanent staff that we're required to keep in order to service these children's needs," Mull said.
Contact Lori Higgins: 313-222-6651 or lhiggins@freepress.com
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