Reforms aimed at special education contractors not yet complete, audit finds

New safeguards are in place for Washington special education students placed with private contractors, but gaps remain in those reforms. Some schools do not visit facilities in-person every year as required, and some state investigations are not conducted as quickly as they could be, a new performance audit found.

Concerns about student treatment in private facilities, including the use of isolation and restraint, prompted legislative reforms in 2023. At the Legislature’s request, the Office of the Washington State Auditor assessed how well selected school districts and the Office of Superintendent of Public Instruction (OSPI) have implemented those new oversight requirements.

The audit found OSPI met its requirements to establish oversight processes, but it could make improvements, while audited school districts had only partly adopted new requirements, in part because they were not fully aware of them all.

“Overall, the report underscores the importance of consistency, diligence and attention to detail,” said State Auditor Pat McCarthy. “With our recommendations, we hope to support districts and OSPI in their ongoing efforts to educate Washington students in safe environments.”

In alignment with legislative reforms, OSPI created processes for authorizing and monitoring contractors both in- and out-of-state, and a formal complaint process that includes investigations. However, two of four investigations auditors reviewed were unresolved. One was still open at eight months and the other at 20 months.

Auditors also identified issues with on-site visits to contractors, which both OSPI and school districts are required to make. For example, when more than one school district works with the same contractor, it is not clear how districts would know which is responsible for the on-site visit.

Also, auditors could not find documentation for 15 of 60 required on-site visits during the 2024-2025 school year. Auditors worked with OSPI and eight involved districts to determine whether those visits occurred; three schools confirmed to auditors they did not make the visits, but the other schools did not respond to requests for clarification.

Separately, four audited schools at least partially adopted all 10 new requirements for special education contracts, but three had not revised their special education policies to reflect 2023 changes.

Auditors also explored why Washington families and school districts sometimes decide to place special education students in other states. As of November 2025, 91 Washington students were placed in residential facilities in 13 states.

The audit identified multiple reasons for these, including limited in-state capacity at residential facilities, the need for specialized programs that only exist in other states (such as for severe aggression), and Washington’s law allowing children ages 13-17 to sign themselves out of a treatment facility unless they are placed there by a court order. 

The audit makes recommendations to both OSPI and school districts to further improve contractor oversight. The full report, including details on each audited area, can be found on the State Auditor’s Office website: Oversight of Special Education Contractors

Media inquiries: Assistant Director of Communications Adam Wilson, Adam.Wilson@sao.wa.gov, 564-999-0799.