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County finance warns of CDEV aid shortfall; recommends monitoring and limited use of fund balance
Summary
County finance staff told the board July 16 that Lakeland School’s state CDEV aid has fallen because Lakeland’s reported expenditures declined while other counties’ CDEV expenditures rose, and recommended monitoring the fund and using interest revenue to partially offset the shortfall.
Walworth County finance staff informed the Children with Disabilities Education Board on July 16 that Lakeland School’s state aid from the CDEV pool has fallen significantly compared with budgeted expectations because Lakeland’s reported expenditures declined over the past two years while expenditures in other CDEV districts rose.
What staff reported Finance staff described how the state distributes CDEV aid among participating districts based on each county’s reported expenditures, partner-district property values and cost-per-pupil comparisons. Lakeland School’s expenditures dropped notably in the past two years, and that decline reduced the county’s share of the CDEV pool despite the statutory distribution method remaining unchanged.
Planned mitigation and limitations Staff said the county’s fund balance can withstand fluctuations for now but cautioned that future revenue may be lower and that the finance committee planned a budget amendment to use interest revenue to offset part of the shortfall. Staff said the planned amendment would cover about $150,000 of an estimated $470,000 shortfall; additional measures may be needed later in the fiscal year if other savings or revenue sources do not materialize.
Operational considerations Staff recommended monitoring fund status, avoiding major operational changes while revenues are uncertain, and reviewing tuition-billing practices (which the board addressed separately). Finance staff said that increasing tuition revenue (bringing more tuition students) and restoring full staffing (which raises reimbursable expenditures) would tend to increase aid in future distributions.
Outcome and next steps This item was informational; finance will present a budget amendment to the finance committee and continue to monitor the CDEV fund, returning to the board if additional action is needed.
