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Board hears that state high‑cost reimbursements covered roughly 31% of eligible costs this year
Summary
Administration explained that contracts for high‑need special‑education placements are costly, not eligible for categorical state aid (except salaries/transport), and that high‑cost aid reimbursements this year yielded about 31% for costs over $30,000; the district received roughly $109,000 in high‑cost aid this year.
District staff told the board that high‑cost special‑education placements and off‑site contracts are expensive and that state reimbursement this year covered far less than statutory maximums.
Adam Bolt reviewed recent contract adjustments (New Connections; Learning Center West) to account for students who enrolled after the prior meeting. Jeff (district finance/special‑education lead) explained funding mechanics: contracts for off‑site placements are not eligible for state categorical aid beyond salaries, benefits and transportation; the district uses federal IDEA flow‑through grant dollars and applies for high‑cost aid when placements exceed certain thresholds.
Jeff said the high‑cost aid program is a limited statewide pool and that although statute may describe a 90% reimbursement above a threshold (e.g., $30,000), competition for funds resulted in a roughly 31% reimbursement rate for Arrowhead this year. "So many are going after that funding, it doesn't allow for a 90% reimbursement like the law would say... because the money runs out this year, it's 31% for 2025–26," Jeff said. He added the district secured just over $109,000 in high‑cost aid for the current year.
Staff provided examples of placement cost ranges discussed in committee: New Connections contracts around $60,000 per student; some very high‑need residential placements can reach the hundreds of thousands of dollars (Jeff cited "three or $400,000" as an extreme example). Board members emphasized that when reimbursement is limited, the general fund must backfill special‑education costs, reducing dollars available for broader programming.
Next steps: administration will continue applying for high‑cost aid, seek categorical‑aid increases at the state level, and refine budgeting to maximize available grant and reimbursement streams.
