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District leaders say state budget changes fall short; special‑education reimbursement rise limited

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Summary

District administrators told the board that joint finance committee actions increase special‑education reimbursement only modestly—from roughly 30% now to an estimated 35% and 37.5% over two years—and that general school aid did not increase, leaving the district in a structural deficit and affecting staffing decisions.

Aaron (District Administrator) and board members discussed changes in the state biennial budget and the likely local impact of Joint Finance Committee actions.

Aaron said the district’s current special‑education reimbursement rate is “a little over 30%.” He said Joint Finance Committee proposals raised that to roughly 35% next year and 37.5% the following year—an increase Aaron described as modest and insufficient. He contrasted that outcome with a 60% reimbursement scenario that district advocates said would have provided about $1.8 million to McFarland.

Aaron said the budget package did not increase general school aid per pupil and provided only small increases for mental‑health, transportation and sparsity aid. He said high‑cost special‑education aid (for students with costs above a statutory threshold) received some additional funding, which could provide some district reimbursement, but those funds are distributed by application and are not a comprehensive fix.

Board members responded that the district remains in a deficit despite the district's recent referendum and that limited state increases force difficult local choices. Board member Meredith said the district paused hiring for the equity, diversity, inclusion and belonging coordinator position because the district cannot yet fund a filled position in a persistent deficit. Board member Bruce and others noted the state general fund surplus and objected to expanded voucher or private school funding in the same budget cycle.

Aaron encouraged board members to talk to constituents and legislators and offered to provide more detail to board members who want to discuss the political context and technical budget details.

No policy action was taken; the discussion was informational and framed the district’s budget planning for the coming year.