District staff told the North Scott School Board on Sept. 22 that the district’s special education program showed a negative balance for the prior fiscal year and asked the board to approve submitting a state special-education supplemental request.

Staff reported year-end figures the board said were filed Sept. 15: revenues of $5,900,000 and expenses of $6,700,000, producing a negative balance of $815,000. The presenter said five-year average deficits have been about $616,000 and that amounts can vary with student counts, Medicaid participation and student need.

The board approved a motion allowing staff to submit a request for allowable flows to obtain supplemental special-education aid to address the deficit. Board members noted the state has signaled it will audit districts’ special-education coding and staffing more closely this year; one board member said the state intends to verify whether paraeducators and associates coded to special education are actually performing only special-education duties, and that deeper audits could follow.

The presenter told the board the supplemental request “will not affect this year’s budget” immediately but will inform future levy and reimbursement planning. Board members asked for clarity on documentation and time coding; one member said accurate timesheet and activity coding will be important if the state audits files.

The board approved the filing by voice vote. Staff said the supplemental application could generate increased workload for the district’s business and special-education staff if the state conducts detailed reviews.