District special education leadership told the Sacramento City Unified board that special education is a primary driver of the district’s fiscal stress and outlined both near‑term cost pressures and long‑term strategies anchored in MTSS.

The special education presenter said the district is serving 6,727 students with individualized education programs — about 17.9% of the student population — and reported a projected special education need of roughly $224 million for 2025‑26 against an adopted special education budget of $181 million, leaving an unfunded gap of approximately $42.7 million.

Staff explained that IDEA promised federal support for excess costs but historical federal contributions average closer to 10–15%, leaving districts to cover the majority of special education costs from local general funds. The presenter and accompanying finance staff described common budgeting practice: adopting a conservative (floor) special education contribution at the start of the year and adjusting the district contribution through interim reporting, citing maintenance‑of‑effort and legal constraints as guiding factors.

To address both student needs and long‑term fiscal sustainability, presenters emphasized expansion of the district’s MTSS proof‑of‑concept: site leadership teams, fidelity integrity assessments (FEA), tiered intervention matrices, protected intervention time, and stronger cross‑departmental coordination. MTSS staff and site specialists described early implementation at proof‑of‑concept schools and the intention for MTSS to act as a preventive system that reduces unnecessary referrals to specialized instruction.

Board members and union leaders pressed for transparency about contingency reserves and for the board to identify earmarked contingencies if the district plans to rely on unassigned fund balance to meet special education needs. Special education staff outlined immediate actions to contain costs: audit vendor contracts, align contracted FTE to position control, tighten attendance and implementation monitoring for vendor services, and expand evidence‑based tier 1 and tier 2 interventions to limit overidentification.

What happens next: staff said they will continue auditing contracts, refine projected contributions at first interim, and work with MTSS specialists to document fidelity metrics and potential budgetary impact over time.