Parkrose board warned of tight finances as special-education costs rise

Parkrose School District officials told the school board on Sept. 22 that the district’s cash reserves and near-term budget outlook are strained and that rising special-education placement costs are a primary driver.

At the meeting, district staff said Parkrose is operating on thin margins after drawing down its beginning fund balance and facing lower state revenue forecasts. Superintendent Michael and business staff outlined the immediate problem: the district needs roughly $1.7 million each month to meet payroll and other obligations, and current available fund balance is well below that level.

District leaders said special-education costs — especially for students placed outside district-run schools — have risen sharply and are compressing the operating budget. “We have right now 7 kids that are placed at that site. Each one of those kids are a $157,000 a piece. And the state department of education only gives us $11,000 for that one kid,” the district’s business presenter said, citing an example placement and the gap between placement cost and state reimbursement.

Why it matters: Parkrose’s leaders told the…