Wyoming Considers Revamping Funding Formula for Young Children with Disabilities

When it comes to funding K-12 schools, Wyoming is one of the most generous states in the nation – and that includes special education. Funding early childhood special education (ECSE) has been more of a struggle for the state, however. Now, the state is poised to fundamentally revamp its approach to ECSE funding, building on stakeholder engagement work funded through the Preschool Development Grant-Birth to Five program (PDG-B5).

In Wyoming, ECSE services are delivered by a network of 14 regional Child Development Centers (CDCs). The CDCs are independent entities overseen directly by the Behavioral Health Division (BHD) of the Wyoming Department of Health. When it comes to special education for children ages three to five under Part B of the Individuals with Disabilities Act (IDEA), BHD is in turn overseen by the Wyoming Department of Education (WDE) – as required by the language of IDEA itself. This complicated arrangement has been a source of frustration for years, and in 2020 a Governance Task Force recommended unifying oversight of the CDCs at WDE.

When it comes to funding, K-12 schools are fully reimbursed by the state for special education expenses – but for the CDCs the situation has been almost the opposite. Each year, on a single day, the CDCs count the number of children they are serving, and then receive a flat amount from the state for each child enrolled. The amount has been set in statute, meaning that it does not even grow each year to account for the cost of living. Each year BHD prepares an “exception request” for the legislature meant to supplement the base funding, but the exception request is not always fully funded.

When the governance change was proposed in the 2021 legislative session the CDCs raised concerns about the details of the state’s approach, and the bill failed to pass. But the systems improvement work continued. A transition report in early 2022 recommended addressing the ECSE financing issue head-on, leading to the creation of a work group that included the Governor’s Office, WDE, CDCs, and school district representatives.

This work group’s analysis released in May 2023 found that, on a per-child per-year basis, CDCs were receiving only 51 cents for every dollar received by school districts. The work group recommended creating a funding formula for CDCs that would be based on more accurate enrollment and expenditure data. A successor work group – comprised largely of the same people – picked up the ball and began working on developing a formula. That work group was supported by the Center for Early Learning Funding Equity.

After an extensive stakeholder engagement process, the work group produced a recommendation for a new ECSE funding formula. The formula accounts for the cost of providing therapeutic services, the cost of providing a Free Appropriate Public Education, administrative costs, and the cost of Child Find. It also includes a proration function so that the Legislature could adopt the formula without tying its hands in the appropriations process. In June, the formula was presented to the Legislature’s Joint Education Interim Committee, and the work group issued its final report in July.

"Through meticulous analysis and collaborative effort, Wyoming's Special Education Funding Formula Group has created an equitable and effective funding model,” said Lachelle Brant, Deputy Policy Director to Wyoming Governor Mark Gordon. “This innovative approach ensures that every child with special needs receives the personalized support required to thrive. By fostering a more inclusive educational environment, the group has empowered each student in Wyoming to reach their fullest potential. If adopted, their work will not only tackle current challenges but also establish a lasting foundation for sustainable and inclusive educational practices."

Through the collaborative work of the last four years the CDCs have built a stronger relationship with WDE, and have come to believe that unifying governance at WDE could be beneficial. For its part, WDE has been discussing a proposed package of reforms that would include a new funding formula, a governance change, and other policy changes recommended through PDG-B5-supported processes.

Another wrinkle is the state’s adoption of what may be the nation’s first early childhood-focused Education Savings Account. A bill passed in 2024 authorizes $6,000 for early childhood expenditures to families with incomes under 150 percent of the federal poverty level. These funds could be leveraged by CDCs to offer pre-K more widely, adding to the opportunities already available for children receiving services under IDEA.

While the WDE Early Childhood Strategic Plan Cabinet has been developing a reform proposal, that proposal has not yet been introduced in the legislature – and its legislative success is far from assured. But for the first time in anyone’s memory the Governor’s Office, the WDE, and the CDCs are all working together toward a package of changes to Wyoming’s ECSE system – a package of changes developed with the active engagement of the organizations delivering the services. At the very least the Legislature will likely have the opportunity to consider a comprehensive new statewide approach to ECSE, one that has the potential to make it easier for providers to deliver high-quality services to Wyoming children and families.

“My hope is that the Wyoming legislature will see the importance of the formula and adopt it, so that Child Development Centers across the state remain viable well into the future,” said Alisha Rone, a work group member and the Executive Director of the Child Development Center of Natrona County. “Implementing the formula would show the state’s intent to focus on improved support for early childhood education, which has been needed for a long time.”

Note: Foresight Law + Policy staffed all of the referenced task forces and wrote or contributed to all of the referenced reports.

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