The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, November 15, 1995           TAG: 9511150262
SECTION: FRONT                    PAGE: A2   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: WASHINGTON                         LENGTH: Short :   47 lines

SPECIAL-ED FINANCING SPURS DEBATE

Much of the increased school spending in the past 25 years has gone not to regular classrooms but for educating disabled children, counseling and other ``social welfare'' functions, an economists' group said Tuesday.

The study by the Economic Policy Institute disputes conservatives' argument that regular school spending has jumped dramatically while learning has plummeted. And it drew immediate criticism.

``Certainly, special education accounts for a piece of the growth. But even when you discount that, the growth in spending is very substantial, and schools have not improved,'' said Chester Finn, a former Reagan administration education official who works for the conservative Hudson Institute.

EPI researchers argue that the study throws new light on the fact that schools handle many tasks beyond just academics, such as helping disabled children.

``The widespread belief . . . that there have been vast new amounts of money poured into regular education with no results is just wrong,'' said researcher Richard Rothstein.

In addition to fueling school spending fights, the findings worried advocates for disabled children, already concerned with what they call slipping support for a 1975 federal anti-discrimination law.

``Our kids are not using more than their share of resources, when you look at individual districts. And what's the alternative? Denying them education?'' asked Jamie Ruppman, a mother in Fairfax, Va.

Some wonder if schools, Medicaid or insurance companies should pay the costs of educating severely medically disabled children.

Of the new spending, the EPI study found:

38 percent went to educate disabled children;

26 percent went to regular education - things like books and classroom instruction;

9 percent went to educate other special groups, such as vocational students or pregnant teens in alternative programs;

16 percent went to items such as security, desegregation plans, transportation, counseling and health services. by CNB