Auburn officials warn special-education tuition, placements drive 28% cost jump

The Auburn School Committee learned March 11 that the district's special-education cost center faces a steep increase next year driven mainly by out-of-district placements and higher tuition rates.

At a budget workshop, Director Laura Shaw and assistant director Rod presented the cost-center 2 review and said the district counted 662 students receiving special education services (Oct. 1 state count), about 21.1% of Auburn’s student population. Shaw noted Maine’s statewide average was 20.4 percent and the national average around 15 percent. Rod said autism identifications in Auburn rose from 75 in 2020 to 146 in 2025.

The presenters told the committee several tuition-driven factors pushed the cost center higher: new placements at special-purpose private schools, additional students who moved into the district already placed elsewhere, and state-imposed tuition caps that limit year-to-year increases to 6 percent per placement but do not limit the district’s aggregate costs. Rod said the combination of increased student counts and tuition changes results in a 28.68% increase in projected costs, which he tied to roughly $5,494,000 in added cost for the cost center as presented.

Nut graf: The committee pressed presenters on whether the increase is a one-off or a long-term trend. Committee member Adam Platt called the 28% rise “obviously huge,” and asked whether the district can expect similar jumps each year. Presenters said the current year’s move-ins were unusually high and emphasized efforts to return students to in-district programs when appropriate, but they warned that revenue timing and reimbursement rules complicate planning.

Rod and Shaw also described MaineCare (referred to in the meeting as "main care") and IDEA-related billing avenues (Section 28 and Section 65 billing). They said Maine reimburses a portion of related services (about 65% historically), and the district has worked to strengthen billing practices and vendor processes. Shaw said the district recovered roughly $113,000 in MaineCare-related reimbursements this year (up from about $72,000 last year) and conservatively projects $135,000 in reimbursements for next year, but she emphasized that those funds currently flow into the general fund rather than automatically returning to special-education programming.

Committee members asked about state-level responses. Presenters acknowledged a state-level review of MaineCare billing compliance and referenced an emergency rule to align Maine’s rules with federal guidelines; they characterized billing reform as complex and still evolving.

The presenters stressed a district priority to avoid unnecessary outplacements and to build internal programs. Shaw said the district has no new staff or programs budgeted in special education for FY27, and that when reimbursements become predictable, the goal is to reinvest to support in-district programming and hiring (for example, additional BCBA support was mentioned as a need).

The budget discussion moved on after committee members asked follow-up questions about the mechanics of tuition charges (some private placements bill for an entire slot length regardless of student attendance) and about whether state efforts could relieve municipal burdens. Presenters suggested state reimbursement policy shifts would help district budgeting but said those shifts are driven at the state level.

Next steps: presenters did not propose a formal vote; the committee continued its workshop through other cost-center reviews.

Sources: Presentation and Q&A at the Auburn School Committee special meeting, March 11, 2026. Direct quotes and numbers drawn from presenters Laura Shaw and Rod (assistant director).