New Haven briefed on rising special-education costs as out-of-district placements grow

Miss Jasmine Jackson, the district’s special-education lead, told the Finance & Operations Committee that the district is seeing a meaningful rise in students requiring highly specialized programming and that tuition and transportation for out-of-district placements are the program’s largest cost drivers. “As of 03/11, we had 61 students who have come into our district” needing specialized services, Jackson said, and the number of students in out-of-district placements rose from 278 to 292.

Jackson said the district now counts about 312 students who require specialized programming and that some recent inflows of students have strained the budget. She noted one example from earlier this year: seven students generated roughly $1.7 million in unplanned tuition costs that the district had no budgeted line for. “The tuition rates continue to rise,” Jackson said, and transportation for those placements adds further expense.

The district’s strategy, Jackson said, is to invest in more in-district specialized classrooms and hire behavioral specialists and paraeducators so fewer students require out-of-district tuition. She described recent steps: opening a new specialized classroom at Roberta Clemente, hiring additional behavioral specialists, and using a “universal design” approach in specialized classrooms to serve multiple students with similar needs.

Jackson also summarized federal and state funding sources that help offset costs, including IDEA funding and a newer “seed” grant intended to give districts more support. She cautioned that some new grant funds cannot be used for third-party vendors, limiting their ability to pay for outside nursing or therapy contracts. “Right now you can’t utilize this grant for third-party vendors,” she said, meaning funds are being applied to in-district personnel and program development instead.

Committee members pressed Jackson on budgeting practice and enrollment trends. Dr. Yarbrough asked whether the district budgets for projected increases in students requiring specialized programming; Jackson replied the district uses current enrollment and builds programs incrementally, because the incoming numbers are difficult to predict. Mr. Wilcox suggested the district gather clearer data on where incoming students are coming from to inform future budget and legislative advocacy.

Jackson urged continued legislative attention to special-education funding and to policy changes — such as a state-level approach to “reasonable cost” — that could standardize who pays for high-cost placements. She said the district will continue building capacity in-district while advocating for more predictable state support.

The committee did not take a separate vote on funding changes at today’s meeting; the presentation was provided for information and budget planning.