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The Washington Legislature directed the Legislative Budget Committee and the Washington State Institute for Public Policy to study the current Washington State special education funding formula and to report on the results of this examination. The current funding formula has been in place since the early 1980s. This study seeks to determine the changes over the last decade in the special education population and program effects of the current formula through an examination of: 1) Washington State trends, 2) local school district practices, 3) federal and state legal requirements, and 4) other states' special education funding formulas.