DC Everest board hears caution on federal Title funding, special-education reimbursement rise offsets local cost pressures

Superintendent Dr. Nye told the DC Everest School Board that recent state budget changes raise the district's special-education reimbursement but that ongoing uncertainty about federal Title funding and rising local costs mean the district is placing a temporary hold on discretionary spending.

Dr. Nye, superintendent, said the state's special-education reimbursement will be higher than earlier projections, with roughly 42% in year one and 45% in year two, compared with a lower figure the district had feared in July. "Ultimately, the increase in special ed funding is a step in the right direction," Dr. Nye said. "At the same time, it's quickly offset by rapidly expanding expenses."

The superintendent described a short-term increase and longer-term cut in state mental-health funding to schools: "That will move up to $40 per student from the current $31 per student. But then in year 2, we'll be down to $12 per student," he said.

Why it matters: the district relies on a mix of state reimbursements, federal grants and local transfers to cover special-education costs. Dr. Nye said the district transfers money from its general fund (Fund 10) into Fund 27 to cover special-education expenses; he estimated the transfer this year will be "probably a little under $8,000,000." That transfer and other local budget choices will determine how the district absorbs new expense pressures.

Dr. Nye also told the board the state has joined other states in litigation to preserve certain federal Title funds and that the outcome is uncertain. "Beginning last week, [we] put out some communication to our leaders just to dial up some cautionary adjustments. The simple version of that is to stop spending on stuff right now and to hold tight so we can protect for people that deliver the programming related to those other purchases," he said. The superintendent said the district has put purchases on hold to avoid commitments if promised federal dollars are reduced.

Programs at risk and carryover: Dr. Nye gave ballpark figures for district allocations and carryover derived from Title funding streams: professional development ("2a") allocations plus carryover commonly total $150,000 to $200,000; English Learner ("3a") with carryover was "just under $100,000" last year; Title 4a was in the $50,000 to $60,000 range; and the 21st Century (after-school) allocation for the Weston Connect program was about $150,000. He said carryover rules vary by grant and that the district is still clarifying exact carryover levels.

Local programming impact: Dr. Nye said the Weston Connect after-school program, funded by 21st Century dollars, has already lost its allocation: "Those dollars were eliminated," he said, and the district is assessing how to respond. The superintendent emphasized the district's goal of protecting staff and core programming while it reevaluates nonessential spending.

High-cost special-education reimbursement: the district received about $128,000 in high-cost special-education reimbursement in 2023-24 and expects that amount to grow, though it remains a relatively small share of total special-education spending. Board members discussed how a higher reimbursement percentage would affect the district's year-end Fund 10-to-27 transfer and overall budget choices.

Board direction and next steps: the board did not take an immediate budget vote at the meeting. Dr. Nye said staff have been directed to pause discretionary spending and to report back when more definitive state and federal numbers are available. He asked board members to expect further updates as the district finalizes year-end figures and clarifies carryover amounts for federal grants.

Ending: Board members asked clarifying questions about carryover and the scale of the reimbursement changes. Dr. Nye said staff will continue to monitor the litigation over federal funding and will bring any programming impacts to the board for decisions.