This study investigated costs of inclusive special education. Specifically, there were three areas of study: a) changes in special education costs in eight school divisions before and after implementing an inclusive special education program (Group A); b) changes in special education costs in two school divisions, one inclusive and one not, when using a more precise calculation (Larson method) of special education costs (Group B); and c) a comparison of total special education costs for all school divisions in the state (where data were reported) before and after a state project to encourage inclusive special education (Group C). All calculations compared 1987-88 costs (pre-inclusion) to 1990-91 costs (post-inclusion), after adjusting 1987-88 costs to 1990-91 values. The study found that in the eight inclusive school divisions, six of the eight reduced the percentage of special education costs when compared to total costs. When looking at reported per pupil costs, only two of these eight divisions reported the cost of elementary special education at a lower level after inclusion. For secondary education, two different divisions of the eight reported the special education costs at a lower level after inclusion. None of the eight reported reduction in both secondary and elementary; half reported no reduction in either level after inclusion.

The case study data found that the inclusive school division had an increase in special education costs, while the non-inclusive school division had a reduction in special education costs during the same time period. Recalculation using the Larson method showed that special education costs were approximately one and one-half times those reported by standard reporting procedures. The study also produced a more accurate method for determining regular education costs for special education students by calculating time special education students spent in regular education, using individual student data to determine the percent of time reported in special education.

In all school divisions in Virginia reporting data, the study found a reduction of special education expenditures occurred during the three-year period, while the enrollment of special education increased during the same period of time.