The impact of California's special education finance reform on student placements and special education finance equity in Ventura and Santa Barbara County school districts

California special education finance was significantly altered in 1997 with the passage of State Assembly Bill 602 (AB 602). This research study investigated how the various California School Districts and Special Education Local Plan Areas (SELPAs) in Ventura and Santa Barbara counties implemented AB 602. Specifically it examined how implementation of AB 602 has impacted special educational services and finance equity amongst school districts in Ventura and Santa Barbara counties. Data for three years prior to implementation and three post implementation was gathered from archival records with the California Department of Education and Ventura and Santa Barbara County Offices of Education.; Analysis of data compiled from various State reports revealed that with the exception of school districts with enrollments less than 2,500, AB 602 did not have a remarkable impact on the number of children placed in special education. Districts with enrollments under 2,500 did begin to offer more services within their districts with the implementation of AB 602. Nor was there a notable difference in the number of children placed in more restrictive environment. Special education funding equity improved for the three years following the implementation of AB 602. However, equity did not improve amongst high school districts, nor did it improve for districts with enrollments in excess of 10,000. Additionally, the implementation of the new funding model impacted the mean funding per ADA differently for each county. Ventura County's mean funding level increased much greater than Santa Barbara County. Special Education encroachment variability did not improve with AB 602. Under the new funding model, a few smaller districts did not have any encroachment in fact they received more special education funding then they spent on services. This positive surplus of special education revenues caused large increases in variability for small school districts as well as increases in variability of per ADA encroachment levels in Ventura County. The only sub group that showed improvement in encroachment variability was Santa Barbara County.