External review: Missoula special‑education costs rising; consultant urges director, billing overhaul

An outside consultant presenting at the Missoula County Public Schools work session on March 11 concluded the district’s special‑education program faces rising costs and structural weaknesses that exacerbate budget pressure.

Consultant Vern (no last name provided in the presentation) summarized an analysis of district and state data showing that federal IDEA Part B and state funding have not kept pace with local spending increases. Vern said local taxpayers have covered the bulk of recent growth: federal IDEA funding rose by roughly $325,000 and state special‑education funding grew by about $63,000 in the period reviewed, while local special‑education spending rose by roughly $2.4 million.

Key findings and numerical context - Preschool costs: the consultant said the district’s preschool program represents roughly $1.3 million in local cost; federal preschool IDEA funding is comparatively small and the state provides no dedicated preschool funding, leaving local taxpayers to underwrite the program. - Tuition/excess special‑education costs: the tuition fund outlays increased from about $64,000 a decade ago to roughly $1.9 million most recently, the presentation said; staff told the board the tuition fund may be capped in coming years and cannot be relied on to absorb future growth. - Caseload and identification: the district’s special‑education share of students is about 17.5% overall (higher in some buildings), with roughly 319 additional special‑education identifications over a recent four‑year span — a pattern the consultant said warrants review for potential over‑identification and inconsistent tiered‑intervention practices across schools. - Maintenance of effort (MOE): Vern reiterated that once the district increases special‑education spending, federal MOE rules require it to maintain that level in subsequent years or risk federal penalties or repayment obligations.

Recommendations presented to the board - Create or designate a district‑level Special Education Director responsible for program oversight, fiscal monitoring, Medicaid billing and ensuring consistent identification practices district‑wide. - Strengthen Medicaid billing and administrative claiming. The consultant said the district is under‑claiming for services that are billable (direct therapy billing, activities‑of‑daily‑living time, and administrative claiming) and recommended assigning clear responsibility and training to maximize reimbursements. - Standardize tiered interventions and 504 practice across schools and provide principal/teacher training to reduce unnecessary escalation into IDEA services. - Review the preschool model and transportation practices to evaluate program efficiency and the cost of centralized preschool placements, including bus and staffing expenses tied to providing preschool at a single site.

Vern told trustees, "You have a staff that loves children. One of the reasons you're in the difficult position you're in is because... we provide far more than is required by the law."

District reaction and next steps Superintendent Hill and finance staff framed the report as operational guidance the board can use while the district works through its budget committee. Pat McHugh and other staff confirmed there are near‑term opportunities to improve Medicaid billing and administrative processes and recommended moving quickly to assign responsibility and implement training before next fiscal year.

The board did not take an immediate vote on the report’s recommendations but directed staff to incorporate the findings into ongoing budget work and to return with implementation proposals, cost estimates and timelines.

— Vern (consultant): "When you have transportation costs go up by over a million dollars for special‑education children, that's what you have to spend next year as well, and the year after, and the year after that."

— On billing and staffing: the consultant recommended designating a responsible administrator to ensure consistent activity‑of‑daily‑living and Medicaid billing so classroom staff can focus on instruction while billing is handled reliably and with training.