Palin did not cut special needs funding by 62%, she increased it

On September 4, CNN anchor Soledad O’Brien alleged that Palin, while governor, cut the Alaska special needs budget.

“One area that has gotten certainly people sending to me a lot of e-mails is the question about as governor what she did with the special needs budget, which I’m sure you’re aware, she cut significantly, 62 percent I think is the number from when she came into office. "

There is a major cut in the Early Development Special Schools budget between 2007 and 2008. You can view them here:
2007 budget (PDF)
2008 budget (PDF)

FactCheck.org reported:

Those who claim that Palin cut special needs funding by 62 percent are looking in the wrong place and misinterpreting what they find there. They point to an apparent drop in the Department of Education and Early Development budget for special schools. But the special schools budget, despite the similar name, isn’t the special needs budget.

The decrease in funding for special schools is illusory. Palin moved the Alaska Military Youth Academy’s Challenge program, a residential military school program that teaches job and life skills to students under 20, out of the budget line for “special schools” and into its own line. This resulted in an apparent drop of more than $5 million in the special schools budget with no actual decrease in funding for the programs.

In a later report, FactCheck.org said:

The budget item for special needs students is called “Foundation Program,” and it did not decrease while Palin was governor. The Alaska Department of Education and Early Development told us that special needs and intensive needs students (that’s students with extreme special needs, the recipients of the largest per-student increase under Palin) got a total of $219 million in 2007, $220 million in 2008 and a projected $276 million in 2009. That’s a projected increase of 26 percent over Palin’s predecessor.

Education Week reported
that the education budget Palin signed in March 2008 actually raises the amount of spending on special needs students:

(The budget plan) raises spending for students with special needs to $73,840 in fiscal 2011, from the current $26,900 per student in fiscal 2008, according to the Alaska Department of Education and Early Development.

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