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Rising nonpublic placements and related services add $1M pressure to FY27 budget
Summary
District staff told the school board that increases in out-of-district nonpublic placements and rising contracted related-service costs (school psychologists, speech/OT/PT) drove about $1 million in new expense pressure for FY2027.
Officials told the board that a rise in nonpublic placements, combined with higher vendor charges for related services, is a major driver of FY2027 cost increases.
Education services staff said the share of cost for nonpublic placements will shift this year such that the district's local share for amounts above a set threshold moves toward a 50/50 split with the state. "This is a significant increase of $1,000,000 just in nonpublic placements," the presenter said.
District leaders also described a national shortage of school psychologists and related-service providers; to meet student needs, the district contracts portions of those services at higher vendor rates. "They are pricey," a presenter said of contracted psychologists and related-service providers.
Board members asked whether students who meet placement requirements could be denied services for budget reasons. Leadership responded unequivocally that legal obligations under IEPs require placement when recommended: "The legal answer to your question is no. We're committed and obligated to provide the supports that are articulated within a student's IEP," Doctor Lawson said.
Administration said it is trying to manage nonpublic placement costs by reviewing actuals and recommending a $5.1 million reduction in the nonpublic line based on those reviews, but warned one high-cost case can change projections dramatically.
No formal action or vote was taken during the work session; staff said program-level decisions would follow federal/state requirements and IEP determinations.
