Issue:
4410 Preschools and 853 state approved non-public school-age programs serve children with intellectual and developmental disabilities (IDD) and delays. These are publicly funded students and placed in our schools only after the local school district Committee on Preschool Special Education (CPSE) or Committee on Special Education (CSE) has determined that they are unable to offer a free and appropriate education (FAPE) as required by federal law. Therefore, our schools are an integral part of New York States continuum of services and they help New York State fulfill its federal mandate.
However, specialized 4410 and 853 programs continue to receive tuition rates that fail to adequately cover the cost of providing an appropriate education to children with the highest support needs. The state has historically reimbursed these programs at a tuition rate below allowable cost and even less of actual cost.
Chapters of The Arc New York can no longer afford to subsidize preschool and school-age programs without endangering other OPWDD related programs. In addition, due to the teacher compensation gap between special education schools and public schools, we also continue to have extraordinary teacher recruitment and retention challenges. Federal grants provided to states through the American Rescue Plan Act (ARPA) in 2021 assisted education providers impacted by the pandemic, but this one-time infusion of aid did not and will not sustain these programs into the future.[1] As these funds have long since sunseted, schools have been faced with an untenable financial cliff.
The most recent analysis of teaching staff vacancies was conducted in late 2024 by the Inter Agency Council of Developmental Disabilities. They surveyed 89 4410 and 853 school providers from across the state. Their findings show the perilous state of educational services for children with IDD and reflect the crisis occurring across the state:
- 1/3 of certified teaching positions remain vacant
- Over 175 SED approved classrooms closed due to staffing shortages
- A total of 357 certified special education teachers left the 4410 preschools and 853 school aged programs in one year – a 17% loss
- 81% of education providers have used school administrators or non-teaching staff to cover classrooms due to staffing shortages this school year
- 78% of preschool 4410 and 85% of school-age 853 providers reported having at least one teacher position vacant during the school year.
Special education schools need predictable and consistent growth factors and tuition rate increases along with other fiscal support to bring reimbursement in line with the cost of operations. Research shows that investing in preschool programs has a significant return on investment.[2]
Students and children with intellectual and other developmental disabilities must be educated with appropriate supports and services in the least restrictive environment with free and appropriate services, which address their individual education needs. However, these educational institutions have historically and inequitably been underfunded, which has caused teachers to be underpaid for their contributions and making it difficult to retain these valuable and critical educators.
Early intervention (EI) and Preschool services are essential for young children with IDD and other disabilities. For maximum brain development, it is crucial to receive education, training, and stimulation at the time in their lives when their young developing brains are at the most receptive and at their highest level of growth. Yet, EI programs have not seen a substantive increase in 30 years. As a result, many children who receive these early services will need limited or no specialized educational services in the future, but those who do require specialized education will need less support because preschool has given them a timely and intensive start.
At the federal level, since early 2025 thousands of US Department of Education (USDE) employees have been laid off, including nearly all staff in the Office of Special Education and Rehabilitative Services (OSERS) and the Office for Civil Rights (OCR). These offices are the backbone of federal enforcement for disability education laws. They:
- Ensure schools follow the Individuals with Disabilities Education Act (IDEA) and Section 504 of the Rehabilitation Act
- Distribute education funding to states and schools
- Investigate discrimination complaints
- Fund research on effective teaching strategies
- Support training and retention of special educators
- Coordinate transition services that help youth with disabilities prepare for employment and independent living
The absence of this oversight threatens to unravel decades of progress toward equal educational opportunity. Weakening or eliminating the US Department of Education will make it harder for students with disabilities to receive the education they are guaranteed under federal law. These cuts could reduce enforcement of disability rights, slow the distribution of IDEA funding, and limit training and guidance that schools and teachers rely on to support their students.
The impact is deeply personal. It affects whether:
- A child with IDD receives the therapies outlined in their Individualized Education Program (IEP)
- A teenager with IDD has access to vocational and transition services
- A parent can challenge a school’s failure to provide necessary accommodations
For many, IDEA protections and enforcement has been the last line of defense against discrimination and neglect. Without it, families face inconsistent state standards, longer wait times, and fewer options for resolving disputes.
[1] https://www2.ed.gov/policy/speced/leg/arp/index.html
[2] https://live-penn-impact.pantheon.io/wp-content/uploads/2016/2015/06/Why-Invest-High-Return-on-Investment.pdf
Call to Action: Provide Equitable Funding for 4410/853 Schools
We advocate for the following to support and sustain preschool and school-age students opportunities for children with intellectual and developmental disabilities:
- In their FY2026 budget request, NYS SED has recommended $65.4M to cover the increased cost of providing a Free and Appropriate Education (FAPE) to Students with Disabilities until Age 22.
- As such, we call for SED to strongly advocate for a yearly tuition rate/trend factor increase to support and sustain pre-school and school-aged programs to help close the gap in recruitment and retention of special education teaching staff.
- Over the past few years, we have worked to align our advocacy strategy with the other state-wide provider associations and support the Board of Regents and SED’s request for a yearly tuition rate increase based on the July CPI. This has proven to be an effective strategy with the NYS Division of Budget (DOB) and has helped our schools receive tuition increase equal to inflationary costs.
- End unnecessary and excessive reconciliation delays for payment through the methodology and rates. With regard to the retention of funds, preschool and school-age programs already suffer from bureaucratic barriers, leaving them unable to plan for the future. While chapter 56 of the Laws of 2022 and NYSED’s tuition rate preschool and school-age programs allowed retention of surpluses starting at 11%, the surplus amount allowed decreases each year. As the sunset of this provision nears, we need to allow for a further extension of retention allowances. Also, while the rate setting unit has improved their time frame for addressing delays in tuition rate appeals, it continues to be a challenge for providers.
- Allow the application of trend factors for evaluations and targeted service rates for aides and nurses. Programs, districts, and county representatives are reporting increased numbers of families seeking evaluations for their children and have noted a disturbing trend that many families are being forced to wait months for evaluations due the limited availability of evaluators.
- New York State Education Department (NYSED) must review the teacher certification process and find solutions to streamline the path towards certification. This would help alleviate barriers towards recruitment of qualified educators. The number of exams and certification reciprocity between states, particularly in the Tri-State area (NY, CT, and NJ) would provide a larger pool of potential candidates to draw from to fill vacancies.
- Last year, Governor Hochul extended the deadline until July 1, 2027 for SED to present its recommendations for new tuition rate methodology to the Executive and the Legislature. We must ensure that the development of the new tuition methodology continues to include input from all stakeholders including parents, providers, school districts and all other interested parties. The process must continue to be transparent and provide an opportunity to give feedback and input on all proposed new tuition methodologies.
Federal Call to Action: Restore Capacity to Enforce IDEA Protections
- Federal lawmakers and decision makers must protect the rights of students with IDD under the Individuals with Disabilities Education Act (IDEA) by ensuring resources are appropriated and allocated.
- Federal lawmakers and decision makers must ensure The Office of Special Education and Rehabilitative Services (OSERS) has the ability, knowledge, and resources necessary to uphold its mission. OSERS plays a vital role in ensuring states comply with the Individuals with Disabilities Education Act (IDEA) and in managing billions of dollars in federal grants that fund special education and vocational rehabilitation.
- Federal lawmakers and decision makers must ensure the Office for Civil Rights (OCR) has the ability, knowledge, and resources necessary to uphold its mission, which investigates discrimination in schools.
- Families filed a record 22,687 discrimination complaintsin 2024, nearly 40% involving disability. Even before the 2025 reorganization within OCR, families often waited years for answers. Now, thousands more may never see their cases resolved.
- There must be guarantees that IDEA oversight falls to experts who understand factors directly related to the education of students with IDD.
We must protect the provisions, protections, and oversight of IDEA.
The Arc promotes and protects the human rights of people with intellectual and developmental disabilities and actively supports their full inclusion and participation in the community throughout their lifetimes.
