PASADENA UNIFIED SCHOOL DISTRICT
Underfunding the IDEA
Individual with Disabilities Education Act
Budget Impact on Pasadena Unified School District
2026
Mr. Matthew Hawkesworth, Assistant CIty Manager
Dr. Julianne Reynoso, Assistant Superintendent-Student Wellness and Support Services Prepared for Pasadena USD Board of Education and City of Pasadena Council Joint Meeting ~ April 20, 2026
PUSD Numbers
Budget shortfalls translate directly into budget strains. ~ 2,238
Students w/ IEPs
FY 2025 enrollment in special education programs
16%+
Higher Need Rate
PUSD sped enrollment rate exceeds state average
The current Federal funding covers
only 10% to 13% of the excess cost of
the SPED
Funding Gap/Student
Average uncompensated cost per IEP student (FY25 est.)
3 in 4
General Ed Students
General education programs impacted by fund diversions
IDEA
FULL
FUNDING
The Promise vs. The Reality
What Is IDEA Full Funding?
Congress's Promise (1975)
When Congress passed the Individuals with Disabilities Education Act, it promised to cover up to 40% of the national average per-pupil expenditure for each special education student.
Actual Federal Contribution
The federal government has never exceeded ~15% of the promised share. In 2022, it funded only ~13% — far short of the statutory 40% target.
The Local Expectation
Districts like Pasadena USD and all publi schools in the United Staes must absorb the gap using general fund dollars creating a structural budget squeeze.
RECOMMENDED
ACTIONS
For Pasadena Officials, PUSD Board
& Leadership
Closing the IDEA Funding Gap
01 Advocate for Federal Full Funding
Engage federal representatives to support the IDEA Full Funding Act, which would raise the federal share toward the promised 40%.
02 State-Level Coalition Building
Partner with ACSA, CSBA, and other CA districts in advocacy before the Legislature for increased AB 602 (SELPA) allocations.
03 Budget Transparency & Reporting
Publish an annual IDEA funding gap report to track, document, and communicate the district's shortfall to stakeholders.
04 Rally our State and City Officials
Partner with our Senators, Assemblymen, and city and local officials to advocate for full funding on the district’s behalf.
Every dollar the federal government fails to
provide is a dollar that Pasadena USD is
impacted in the bottom line.
"Public education is our greatest pathway to opportunity in Am e ric a ." ~ Michelle Obama
PASADENA UNIFIED SCHOOL DISTRICT
Board of Education/City of
Pasadena Joint Meeting
Special Education Finance
Report