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Finance director: special-education contracts and substitutes driving Q2 spending; no budget freeze recommended
Summary
At the Feb. 3 meeting the district’s finance director reported fiscal‑year‑to‑date spending and encumbrances, highlighting special education contracted services and teacher substitute costs as drivers of increased projections and saying staff do not recommend a budget freeze at this time.
Finance Director Jenny Lynn presented the FY25 second‑quarter financial report Feb. 3, saying the district’s total FY25 operating budget is $67,585,355 and that, after accounting for spending and encumbrances, the general fund showed an available balance representing roughly 97.38% of projected usage at midyear. Lynn said payroll and encumbrance adjustments are ongoing as staffing changes are processed.
Lynn told the committee that contracted special‑education services have risen above budgeted levels: the FY25 budgeted amount for special‑education contracted services was $329,000 but the current projection for those contracted services is approximately $665,000, driven in part by outside psychological evaluations and by filling needs during long‑term staff absences. Lynn said a currently unfilled school‑psychologist position has contributed to per‑evaluation costs. She said the district is actively recruiting to fill vacancies.
The report also noted higher substitute‑teacher costs during January’s flu season and projected substitute spending in the $430,000 to $550,000 range for the year; at midyear substitute costs were running about $240,000. Lynn said transportation costs for outsourced special‑education routes are projecting roughly $1.7 million for the year, similar to FY24 spending. She said savings from outsourcing include avoided fleet and benefit costs.
On out‑of‑district tuition, Lynn reported the general‑fund budgeted amount of $3.2 million has $2.6 million encumbered at quarter‑end, producing a projected shortfall in the general fund encumbrance column of about $1.1 million. The finance director and special‑education staff are reconciling encumbrances and Lynn said she expects some encumbrance adjustments in Q3; after discussion with special‑education leadership the finance director recommended no district‑wide budget freeze at this time but said the district will continue close monitoring.
Lynn also briefed the committee on federal grants: Title I funding for FY25 is about $100,000 (supporting counselor positions and targeted services), and IDEA grant 240 funds a little more than $1 million over two years and helps offset special‑education contracted services and adds 1.5 FTE psychologists.
Committee members asked about causes and possible mitigations for the special‑education increases; Lynn and special‑education leadership cited student enrollment changes, unexpected placements and a greater need for outside evaluations as primary drivers. Committee members praised the clarity of the presentation and asked staff to continue monitoring and to report back with any recommended transfers or adjustments.
Sources: Q2 financial presentation and committee discussion recorded in the Feb. 3 meeting transcript.
