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In 1995, the Washington Legislature revised the state special education funding formula and developed a safety net process to assist school districts with three areas of specific financial need. The Legislature also directed the Institute, in cooperation with the Office of the Superintendent of Public Instruction (OSPI), the Office of Financial Management (OFM), and the fiscal committees of Washington’s Legislature, to evaluate the allocation of safety net funds under Washington’s special education funding formula. A summary of the first round of safety net applications and future directions to improve the process are presented in this paper.