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Osseo board hears that special‑education costs outpace state, federal funding; billing growth could help
Summary
District staff told the Osseo Public School District school board that average IEP costs exceed state and federal aid, producing a general‑fund 'cross subsidy' and that expanding Medicaid/third‑party billing and a new staffing task force are key tactics to close gaps.
Superintendent Kim Heil and district directors presented a detailed review of special‑education financing at the Osseo Public School District work session on March 10, saying the district covers a substantial portion of mandated services from its general fund.
Assistant superintendent Brian Bass opened the session’s funding overview and Sunny Burstein, director of student services, walked the board through revenue sources, staffing needs and enrollment trends. "While special education generates additional revenue, it does not fully cover the cost of services," Burstein said, and explained that state aid is reimbursement‑based and subject to a maintenance‑of‑effort requirement.
Burstein gave the district’s current average cost to educate a student with an IEP as $19,221,…
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