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Hopkins still covering millions after state increases for special education and English‑learner costs
Summary
Speakers at the Hopkins session said state increases reduce but do not eliminate local cross‑subsidies for special education and English‑learner services; Hopkins spent about $17.6 million on special education in FY23, with state aid covering part of the cost.
Hopkins Public School District officials and a state finance expert told community members that special education and English‑learner (EL) funding still leave districts covering substantial local costs despite recent state increases.
Krista Caput, the session presenter, summarized statewide figures and the Hopkins detail: “We spend about $2,000,000,000 annually to educate special education students,” she said, and for fiscal 2023 Hopkins spent about $17,600,000 on special education while the state’s initial funding to the district was about $9,600,000, leaving roughly $8,000,000 to be covered locally before a later state adjustment. Caput said the state provided an additional roughly $1,100,000 to Hopkins, reducing the local gap but leaving “about $7,000,000” carried by the district in FY23.
Caput explained changes the 2023 legislature made: the state expanded EL per‑pupil amounts and committed to covering a larger share of EL and special‑education cross‑subsidies over time. She said Minnesota now covers about 44% of special‑education cross‑subsidies (with a planned increase toward 50%) and will cover a portion of EL cross‑subsidies; even with these changes, she projected Hopkins’ special‑education cross‑subsidy would fall from about $8,000,000 to approximately $4,400,000.
District special services director Fonda Contreras said the district is legally required to provide services under federal law and that staffing and budgeting must support those obligations. “We are mandated by law to provide the services,” Contreras said, and she confirmed the district had fewer paraeducator shortages than in prior years but noted para negotiations on wages are ongoing.
Why it matters: district general funds make up the remaining local costs for legally required services when state and federal reimbursement fall short. Hopkins leaders said those local costs affect general fund planning and are a central pressure point as the district develops its budget proposals for the coming year.
District and board members said they will continue to monitor state funding changes and negotiate staffing contracts; community members were advised that changes in state policy and future appropriations will affect the district’s capacity to reduce local subsidies.
