Audit: Rising special-education costs and tuition spikes are straining Bristol Public Schools budget

CliftonLarsonAllen (CLA) auditors told the Bristol Board of Education on March 5 that a combination of rising outplacement tuition, growing professional-services costs and lower state reimbursement rates have produced recurring special-education budget shortfalls that are now stressing the district’s fiscal picture.

The board heard a high-level overview of CLA’s financial assessment for Bristol Public Schools covering fiscal years 2022–24 and an explanation of recommendations CLA says would improve budget controls and transparency. CLA analysts told the board that special-education costs have grown far faster than overall budgets in recent years and that tuition and provider rates have risen in the mid-teens percentage range year-over-year.

Why it matters: Special-education spending is a large and growing portion of the district’s outlays. Board members were told that without additional city funding and changes to budgeting and purchasing processes, the Board of Education will likely face decisions that reduce staffing or other services to balance the fiscal year 2026 request.

CLA’s findings presented to the board and district staff highlighted several drivers of budget overages: initial special-education budgets that were too low relative to actual need; outplacement tuition increases reported at roughly 14–16% in recent years; rising professional-services fees for occupational therapy, physical therapy and similar services; and a decline in the district’s effective state reimbursement rate compared with historic levels. CLA said Bristol’s reimbursement rate is closer to about 64% in recent years rather than the 74–79% districts once expected, increasing net local costs.

CLA also identified several discrete one-time and policy-related cost increases. The auditors reported approximately 50 new special-education students in fiscal 2024 who required out-of-district placements, which CLA estimated added about $1.2 million to that year’s costs. The firm said an unfunded state change to extend special-education service eligibility to students up to age 22 (effective July 2023) produced an additional estimated cost to Bristol of approximately $611,000.

District officials and Board Chair Ponce told the board they expect the Board of Finance to consider supplemental funding requests; at a March 4 meeting with city finance leaders the Board of Finance chair indicated a tentative willingness to consider increases that would cover a forecasted $6.6 million increase for special education and an additional $1.2 million in alliance funding, a combined $7.8 million over the previously approved budget, the board was told. Superintendent White and central-office staff said they will prepare scenarios illustrating the impacts of different budget reductions — for example a $5 million versus $6 million reduction — for upcoming finance committee discussion and for the Board of Finance meeting on March 19.

CLA recommendations presented to the board focused on internal controls and operational changes the auditors said could reduce unexpected costs and improve transparency: confirm rate ranges in outplacement contracts or budget for the high end of likely rates; streamline purchasing approvals and consider dollar thresholds; allow district finance staff to close purchase orders rather than relying exclusively on city staff; digitize accounts-payable workflows to reduce paper-intensive manual processes; adopt and configure position-control features in the district financial system to manage positions and hiring against budgeted positions; centralize tuition and special-education cost management within the business office; and increase regular, structured communication between district and city finance teams.

CLA presenters at the meeting included Jeff Cipla and Aaron Perillo; Lindsay (Lindsey) Intreary delivered parts of the special-education and tuition analysis. CliftonLarsonAllen was contracted by the city’s Board of Finance last fall to review Bristol Public Schools’ administrative and financial processes and to analyze budget variances for recent fiscal years.

Board members pressed CLA and district staff on the scope of the audit and on whether the review considered potential redundancies in positions between the city and the district; CLA said the engagement focused on financial processes and controls and did not include a review of overlapping personnel assignments between city and district offices. Board members asked for follow-up and clarification on specific counts and line-item reconciliations.

District next steps recorded at the meeting include the central office preparing two or more budget-reduction scenarios and providing those to board members in advance of committee and full-board deliberations; CLA said it would provide an overview of the audit findings that the board can use as a roadmap to identify both immediate and longer-term steps to address the projected fiscal pressure.

The presentation did not include a formal board vote; CLA’s report and the district’s requested scenarios are to be used in upcoming finance committee discussions and at the March 19 Board of Finance meeting.