The Washington Legislature in 1995 directed the Washington State Institute for Public Policy to evaluate the safety net created to address potential school district funding issues under the new special education funding formula. This study finds that school districts are receiving $10.5 million (62 percent of the amount appropriated for the first year) in safety net awards. Ninety-one percent of safety net funds were awarded for school districts under the category of Maintenance of Effort for State Revenues. The rest of the awards were made from the other two categories, Special Characteristics and Costs and High Cost Individual. This study highlights administrative issues to be worked on related to: 1) timing the release of funds, 2) greater education and access for school districts, and 3) an investigation of what criteria are appropriate for the categories of Special Characteristics and Costs and High Cost Individual.