School DecisionThe Newsroom
SATURDAY, SEPTEMBER 5, 2026
Beyond the headline
SCHOOLDECISION.COM/NEWSROOM
Kansas · Policy & Funding

Four Johnson County districts form coalition, hire counsel to sue Kansas over special education underfunding

Blue Valley, De Soto, Olathe, and Shawnee Mission signed a memorandum of understanding in May 2026, aiming to force the state to meet its 92% reimbursement requirement for special education excess costs.

State reimbursement rate for special education excess costs60%70%80%90%100%Statutory target (92%)2023-242024-252025-26 (est.)2026-27 (proj.)75.4%65.2%
Original Research by SchoolDecision.com
Kansas's reimbursement rate has remained well below the 92% set by state law for more than a decade and is projected to decline further. [4]

Four Johnson County school districts have formed a coalition and hired legal counsel to sue Kansas over the state's long-running failure to meet a statutory requirement that it cover 92 percent of the excess cost of special education. Blue Valley, De Soto, Olathe, and Shawnee Mission signed a memorandum of understanding on May 20, 2026, creating the Kansas Public School Funding Coalition. The districts collectively serve more than 83,000 students. In August, the coalition announced it had selected the law firm Lathrop GPM to develop a litigation strategy. No lawsuit has been filed.

The funding gap

Kansas has not met the 92 percent threshold since 2011, according to data from the Kansas State Department of Education reported by the Kansas City Star. In the 2024-25 school year, the state covered 75.4 percent of excess costs. That figure dropped to an estimated 67.2 percent for the current school year and is projected to fall to about 65.2 percent next year, based on the budget passed by both legislative chambers.

$119 millionCombined local funds the four coalition districts diverted from general education budgets in 2024-25 to cover the state's special education shortfall. [4]
$225 millionAdditional state funding needed to meet the 92% statutory threshold, according to the Kansas City Star. [6]

The law itself, K.S.A. 72-3422, sets the reimbursement rate at 92 percent of statewide excess costs, but makes that amount subject to appropriation by the legislature. The Kansas Legislative Research Department confirmed that the law includes a proration mechanism: when appropriations are insufficient, state aid is automatically distributed at a reduced rate. Under this proration mechanism, actual reimbursements can fall below 92 percent when the legislature does not appropriate enough funding to meet that level.

Legal and legislative context

The coalition's litigation effort comes after the closure of the Gannon v. State of Kansas case in 2024, according to the Johnson County Post. The Kansas Supreme Court determined the state had fulfilled all mandated increases for overall K-12 funding, ending that channel for judicial intervention. The new coalition must start a separate legal process focused specifically on special education.

In 2024, the Kansas Legislature considered rewriting state law to permanently lower the special education funding requirement below 92 percent, the Kansas Reflector reported. Education advocates warned the proposal would permanently underfund special education. The measure did not pass, but the attempt illustrates the legislative backdrop for the districts' legal action.

Attempts to close the gap

A special education funding task force established by the legislature recommended in 2024 that lawmakers add $82.7 million annually for four years to reach full compliance with the 92 percent law, according to the Kansas Reflector. The legislature instead approved $75 million in new special education funding in 2024, and only $6 million in 2025, widening the gap. Governor Laura Kelly had proposed adding $50.6 million for the 2025 session, and the Kansas State Department of Education recommended $150 million.

A separate legislative task force continues to meet to examine whether the current special education funding law is fair and whether changes are needed, with a recommendation due in January. As reported by KSHB, no proposals had been made as of the time of that report.

Analysis

By the School Decision Newsroom, written after the reporting above was filed.

The Kansas Supreme Court already heard this argument and rejected it.

In Gannon v. State (2017), plaintiffs argued that prorating special education aid was unconstitutional, likening it to proration of supplemental general state aid that the court had struck down. The court disagreed, holding that "the mere underfunding of special education aid does not itself render S.B. 19 structurally inadequate." The distinction mattered: supplemental aid equalized funding across districts, so proration created wealth-based disparities. Special education aid does not equalize, so proration of it was constitutionally permissible. The coalition must build a theory the state's highest court has already previewed against.

A task force report due January 11, 2027 could preempt or undercut the lawsuit.

Kansas SB 387 (2024) created an education funding task force charged with reviewing whether revisions to special education state aid methods are "advisable or necessary." Its report is due to the legislature and governor by January 11, 2027. The task force could recommend a path to 92 percent compliance, giving lawmakers reason to act before litigation forces them. It could also recommend lowering the threshold, as the legislature attempted in 2024. Either way, the report lands before any likely trial date and shapes the political terrain the lawsuit operates in.

New Hampshire just proved courts can rule special education funding unconstitutional, but on different grounds.

In August 2025, a New Hampshire superior court judge ruled the state's special education funding unconstitutionally low, the first such ruling in the country. But the decision rested on equity: state underfunding forced local property taxes to compensate, creating unconstitutional tax-rate disparities between towns. The Kansas coalition's claim targets a statutory shortfall, not a constitutional equity violation. And even in New Hampshire, the judge declined to order the legislature to spend more, leaving compliance to lawmakers. The precedent is real but the legal bridge is not straightforward. That is our read, not the court's.

Sources

  1. Shawnee Mission School District. Joint Press Release - May 20, 2026 View
  2. Kansas Legislature / Revisor of Statutes. K.S.A. 72-3422 - Special education state aid View
  3. KSHB. KSDE explains how Kansas Legislature legally underfunds special education View
  4. Kansas City Star. Why four JoCo school districts will sue Kansas over funding View
  5. KCUR (NPR). 4 Johnson County school districts take step toward suing Kansas over special education funding View
  6. Johnson County Post. JoCo districts hire law firm in fight over special ed funds View
  7. Kansas Reflector. Kansas governor signs school funding bill with $75 million boost for special education View
  8. Kansas Legislative Research Department. Special Education Funding View
  9. Johnson County Post. 4 JoCo school districts move to sue state over special ed funding View
  10. Kansas Reflector. Education advocate: Kansas school finance bill would 'permanently underfund' special education View
  11. Kansas Supreme Court (via Kansas Revisor of Statutes). Gannon v. State of Kansas, Supreme Court Opinion (October 2, 2017) View
  12. Kansas Legislature. K.S.A. 72-8194 - Education funding task force View
  13. Concord Monitor. Judge rules New Hampshire's special education funding unconstitutionally low View
Four Johnson County districts form coalition, hire counsel to sue Kansas over special education underfunding | School Decision