Duluth schools revise special-education revenue upward by roughly $5.5 million; general fund spending above target

The HR Business Services Committee reviewed revised budget figures April 13 that include a substantial upward revision to special-education revenue and continued concern about general-fund spending levels.

Director Zunich told the committee she added $5,256,647 in cross-subsidy aid to the special-education revenue line and increased the ADM projection by 32, producing about $239,392 in additional revenue. “We have received our cross subsidy aid, and so I added the $5,256,647,” she said, and later noted the combined revised total of roughly $5,496,039.

Zunich explained that the district’s adjusted projection for special-education revenue and expenditures could be about $36,480,478, creating roughly a $5 million difference from earlier budget figures. Committee chair Amber Sadowski had earlier flagged the general fund’s expense rate at approximately 75% of budgeted expenses, above the target of about 66.5% for this time of year — an imbalance that the committee said is driving continued budget-reduction conversations.

Superintendent Magus and other members linked higher special-education costs to behavioral and student-support needs that increase staffing and service demands. The committee heard staff explain the methodology used for projections (spending-to-date divided by 12, then projected) and noted that auditors typically review adopted and revised budgets during their work.

What happens next: staff did not propose a final action at this session but presented the revised figures for committee awareness; administrative follow-up and continued monitoring were requested. No formal vote was recorded on the revised budget within the transcript.