The proposal, discussed during a lengthy special meeting Tuesday night, would have saved the district more than $10 million in the next school year.
District leaders warned that without changes, the Wake County Public School System could face a nearly $18 million budget shortfall in special education funding by this time next year if special education costs remain the same.
Teachers and parents said they were relieved by the board's decision but concerned about what comes next.
"I think a lot of confusion and questions still remain. If it's not special ed, then what? I think there are still lots of questions about special ed programs generally that didn't get answered," said Christina Cole, president of Wake North Carolina Association of Educators (NCAE).
WCPSS spends roughly $305 million each year on special education. District officials have cited rising costs tied to inflation and the absence of a state budget as factors driving the need to find savings.
Parents who attended the meeting said the discussion highlighted a disconnect between district leadership and classroom realities.
"There are still questions about our finances that need to be answered," said Susan Book, a parent of a child in special education. "I think that there is a huge disconnect between what staff thinks special education looks like in a classroom and what it actually is, and I hope that they work on addressing that piece as well."
Educators echoed concerns about ongoing strain from repeated budget pressures.
"Asking workers to do more with less, and it feels like death by a thousand paper cuts, right? Like, every year, it's a little bit more, it's a little bit more, it's a little bit more," Cole said.
District officials said the projected shortfall could be eased with additional state support. Cole said legislators should prioritize students in the next state budget.
"Clear demands from the state that puts kids first. That means increased per-pupil spending," she said.
During a one-on-one interview with ABC11 on Friday, Wake County Schools Superintendent Dr. Robert Taylor urged state lawmakers to invest more in special education statewide.
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Parents told ABC11 that they don't have much faith that state leaders would invest in special education programming.
"They've had their chance over and over and over and over again," said Book. "Get your act together. The need is here and now."
Book said she and other parents feel trust has been damaged by the proposal and the process surrounding it.
"My biggest question is what are they going to do to mend the trust that has been broken? What are their action steps? Because trust has been broken and that needs to be worked on," Book said.
Taylor is scheduled to present the district's full proposed budget on April 7. Until then, educators and families say uncertainty remains over where future cuts could fall.