David, the district business manager, told the board the state initially estimated special-education reimbursement at 42% but that the department ultimately set a local rate near 35%, a gap that for Superior translates to roughly $600,000 compared with the earlier expectation. The district had budgeted conservatively at 37%, which may help mitigate some of the shortfall.

David also described the district’s health-insurance experience: approximately $6.7 million in claims were paid to the plan while premiums were about $5.3 million, creating an underwriting deficit near $1.4 million. He said actuarial projections currently point toward a potential 20% increase in rates at renewal, and that the district is exploring options but is unlikely to benefit from going self-insured at this time because of the size and volatility of recent claims.

Why it matters: SPED reimbursement changes and health-insurance cost increases could affect next year’s budget planning and may require adjustments to reserves or program spending. Next steps: administrators suggested further analysis and possible employee meetings about benefits options; finance staff said they will continue to monitor state reimbursement updates and present options to the board.