District staff briefed the Waunakee budget committee on Jan. 5 about a statewide shift in Department of Public Instruction (DPI) payments for special‑education categorical aid. Steve told members that DPI began issuing payments at a 35% reimbursement level while the state budget referenced 42%; the district had prudently budgeted at 40%.

Steve said the district’s audited Fund 27 expenses total $11,250,000 and that, because audited expenses were higher than budgeted, the district’s eligible reimbursement base grew. “If we end up across the state at 38 and a half percent, we’re actually gonna be in a very strong position,” he said, noting that his statewide data consultant believes DPI is being conservative and that 38.5% is a plausible proration.

He warned, however, that high‑cost special‑education aid remains uncertain: the more districts that apply, the more proration can reduce actual payments. Steve asked board members to continue advocating with legislators that reimbursement percentages be committed and funded upfront, rather than prorated down.

No DPI official attended the meeting to respond; staff characterized the 38.5% figure as an independent estimate and said final DPI numbers will determine the district’s outcome. The committee will monitor DPI notifications and the district’s high‑cost aid application process as staff prepare budget updates.