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Finance update: special education costs show shortfall offset in part by circuit breaker payments
Summary
District finance staff told the committee special-education tuition pressures created a projected deficit that projected circuit breaker and one-time offsets may largely cover; the district expects tighter cash flow and will not prepay tuitions next year.
A staff budget update on Tuesday showed the district facing elevated special-education tuition and associated costs, producing a projected negative variance that staff said would be largely offset by anticipated state circuit-breaker funds and year-end adjustments.
A staff presenter identified as John (staff member) told the committee he projected the district would incur nearly $12 million in additional salary expense for the remainder of the fiscal year on top of amounts spent to date. "I'm estimating another almost $12,000,000 in expense," John said during the budget briefing. He walked the committee through the district’s salary and non-salary projections and summarized one major pressure: special-education tuition and related placements.
John presented a projection showing a negative variance on the special-education line of approximately $1,766,037 before expected circuit-breaker reimbursements. He explained the district had several circuit-breaker revenue sources available (prior-year balances plus current-year payments and an anticipated extraordinary-relief payment) that together could offset most of that shortfall. Using the district’s projected circuit-breaker and relief estimates, John showed an adjusted net position with a small positive balance (roughly $128,003 by his calculations) but cautioned the numbers were projections and would change as actual tuitions and reimbursements materialize.
Committee members asked whether the district can continue prepaying tuitions in future years. John said recent budget practice of prepaying tuitions will not be possible next year, which will worsen the appearance of budget pressure and will likely require asking for more resources in the FY26 budget. The committee discussed how programmatic changes or in-district program development could reduce out-of-district tuition pressure but noted that building capacity and program design themselves carry costs.
The committee also approved routine financial warrants during the meeting: review and approval of payroll warrants (25 PS dated 12/18/24 and 27 PS dated 11/25) and accounts-payable warrants (SW 26 dated 12/17/24 and 28 V dated 12/27/24). The committee received the finance paper packet and was advised the governor’s budget release timeline could further affect final figures.
John and the committee framed the special-education outlook as manageable for the current year provided anticipated state reimbursements arrive, but he warned the district will need to account for fewer one-time offsets in the next budget cycle.
