Senate budget shifts how Florida tracks special education funding as scholarship enrollment expands

As lawmakers move toward budget conference negotiations, a key policy discussion is emerging over how the state calculates and tracks funding for students with disabilities.

The Senate’s proposed education budget restructures how Exceptional Student Education (ESE) funding appears in the Florida Education Finance Program (FEFP), separating scholarship-funded students from the traditional public school funding formula.

At first glance, the Senate proposal appears to reduce the ESE Guaranteed Allocation, a major funding pool used by School Districts and charter schools to support services for students with disabilities.

The current year budget provides roughly $1.36 billion for the ESE Guaranteed Allocation. The Senate FEFP calculation shows that figure at about $1.125 billion — a difference of roughly $235 million.

However, the change reflects a shift in how the allocation is calculated rather than a change to the underlying funding formula.

The per-student ESE Guaranteed Allocation factor remains $2,164.20, meaning the formula used to calculate funding for exceptional student services has not changed. Instead, the Senate proposal calculates the allocation using only public school full-time equivalent (FTE) enrollment, while scholarship students are funded through a separate appropriation.

The House proposal includes both public school students and scholarship students when calculating the size of the ESE allocation pool. The Senate proposal counts only public school students within the FEFP formula and funds scholarship students outside the formula.

The Senate budget includes approximately $4.48 billion for Florida’s education scholarship programs, including the Family Empowerment Scholarship programs that serve both general education students and students with unique abilities.

State projections estimate nearly 489,000 students will receive scholarships statewide, including roughly 169,000 students participating in the Family Empowerment Scholarship for Students with Unique Abilities.

Separating scholarship funding from the FEFP formula allows policymakers to more clearly track how much funding flows through scholarship programs versus traditional public school funding.

Instead of blending scholarship funding into the FEFP calculation, the Senate structure tracks the two systems separately.

The distinction initially created confusion among school leaders reviewing the budget documents, particularly when comparing the ESE Guaranteed Allocation line to previous years.

When viewed in isolation, the ESE allocation appears significantly smaller. The difference reflects the removal of scholarship-funded students from the FEFP calculation rather than a reduction in per-student funding.

The issue is particularly important for schools that specialize in serving students with disabilities.

Across Florida, some charter schools operate programs designed specifically for students who require additional academic support, behavioral services, and transition programs that help prepare students for employment and independent living.

Pepin Academies in Tampa is one example of a school focused on serving students with learning disabilities, ADHD and other exceptionalities.

“Students with disabilities often need a different type of educational environment to succeed,” said Jeff Skowronek, Executive Director of Pepin Academies.

“Schools like ours are built around smaller class sizes, specialized instruction, and transition programs that help students move successfully into the workforce and independent living. As lawmakers review changes to the funding structure, it’s important to make sure the schools providing those services continue to have the resources needed to support students and families.”

Providing those services can be resource intensive. Self-contained ESE classrooms often require specialized teachers, paraprofessionals, and access to therapy services such as speech and occupational therapy. Schools that serve large concentrations of ESE students often operate with higher staffing ratios and additional support staff to meet student needs.

Statewide demand for special education services has also grown over time. Florida served roughly 330,000 students receiving exceptional student education services about a decade ago. Today that number exceeds 420,000 students.

Lawmakers will ultimately reconcile the House and Senate approaches during budget conference negotiations.

The debate reflects the broader evolution of Florida’s education system, where traditional public school funding and the state’s rapidly expanding scholarship programs now serve hundreds of thousands of students through different pathways.

As lawmakers finalize the budget, the key question will be how to balance transparency in tracking funding streams with ensuring that schools serving large numbers of students with disabilities — whether District, charter, or specialized programs — continue to have the resources needed to deliver the services those students require.