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Blue Valley board warns of special‑education funding gap as reserves shrink

Blue Valley Board of Education · January 13, 2026
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Summary

At a Jan. 12 meeting the Blue Valley Board of Education heard a midyear budget review showing an estimated $9–$10 million midyear deficit for 2025–26 and an approximate $18 million gap to reach the state’s 92% special‑education funding target; administrators urged legislative action while warning local reserves are being drawn down.

The Blue Valley Board of Education was warned Tuesday that the district faces a tightening budget that administrators say is driven largely by rising special‑education costs and a recent enrollment decline.

Jeremy McFadden, the district chief financial officer, said the district projects “roughly a 9 to $10,000,000 deficit in this fiscal year 25‑26” and estimated that about $18 million would be required to bring special‑education funding back to the state target of 92 percent. "That 18,000,000 would be the approximate amount to get us back to that 92% target," McFadden said during a midyear budget and enrollment presentation.

Why it matters: special education is a large and rising share of the district’s…

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