The Pleasant Valley Community School District board voted Sept. 22 to ask the Iowa School Budget Review Committee for additional spending authority and supplemental aid covering the district's final 2024‑25 special‑education deficit and excess limited‑English proficiency (LEP) costs. The board authorized two separate requests: one tied to a $1,636,917.40 special‑education shortfall and another for $231,464.77 in LEP excess costs.

District staff told the board that Medicaid reimbursement and student counts are the primary drivers of year‑to‑year changes in the special‑education deficit. "The amounts that we do bill for Medicaid... have the effect of decreasing our special education deficit because that's revenue coming in that decreases our special education deficit," said Mr. Lanesmith, who reviewed the district's historical Medicaid billing and deficit calculations.

Why it matters: State rules allow the SBRC to grant modified supplemental authority when districts run qualifying deficits in programs such as special education and LEP. Approval would provide the district additional general‑fund spending authority or state assistance to offset the shortfalls recorded in the 2024‑25 fiscal year.

Staff explained the special‑education deficit reflects both increased service levels and a temporary dip in Medicaid reimbursement linked to recent changes in billing for transportation services. Lanesmith said the district had started billing transportation more aggressively this fiscal year and expects Medicaid revenue to increase again when documentation and parent pre‑consents are in place. He also noted some eligible families decline Medicaid billing for privacy concerns, which reduces recoverable revenue.

Board members asked clarifying questions about private‑school service costs and historical trends. Staff said the district provides special‑education services to students attending private schools within the district and that those costs are included in the deficit calculations.

Board action: Director Kunkle moved and Director Ayers seconded a motion to request a modified supplemental amount equal to the final 2024‑25 special‑education deficit of $1,636,917.40 (or the final amount determined by the Iowa Department of Education after review) and to request supplemental aid as available. The motion passed on a roll‑call vote with all members voting yes.

For the LEP request, Director Smith moved and Director Ayers seconded a motion to request modified supplemental amount for excess LEP costs in the amount of $231,464.77 (or the amount determined by the Iowa Department of Education after review). The motion also passed on a roll‑call vote with all members voting yes.

Next steps: The district will file the requests with the SBRC and provide documentation of its special‑education and LEP costs and supporting Medicaid‑billing records. The final amounts will be determined after the state’s review of the district's CAR (Certified Annual Report) and related reports.