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Topeka schools: special‑education shortfall ~ $10 million; health costs expected to rise
Summary
The district finance director told negotiators that state special‑education funding covers around 62% of excess costs and estimated a roughly $10 million shortfall for 2025, which the district covered from general fund and LOB resources. He also warned of rising health‑insurance costs that could add about $2.2 million to next year's spending.
Gary Midy, speaking for the district business office, delivered a wide‑ranging finance briefing for negotiators, covering state foundation aid, special education and at‑risk funding, deferred maintenance and health‑insurance trends.
On special education, Midy said the statutory expectation is that the state reimburse districts for 92% of excess costs, but the district currently receives far less. "We got about 62%" of excess‑cost funding in the most recent year, Midy said, estimating the district absorbed roughly a $10 million gap in 2025 by transferring local general‑fund and LOB dollars into special education.
Midy also outlined the district’s capital and maintenance needs, noting an inventory of deferred maintenance he estimated in the tens of millions of dollars, and summarized how state foundation aid and local option budget levies factor into the district’s revenue picture.
On employee benefits, Midy flagged health‑insurance claims that outpaced premiums in recent years and described plan‑rate increases that could translate to roughly $2.2 million in additional annual spending district‑wide under plausible scenarios. "Next year, October 1, 26 through September 30, 27th, we ... are going to put $2.2 million into this health insurance system next year," he said, and urged both sides to consider plan design and cost‑management steps.
The district did not propose immediate budget cuts; the briefing was framed as context for negotiations and upcoming budget planning. Midy recommended monitoring school‑finance discussions at the state level, where a 2027 reauthorization of the finance formula could materially affect district revenues.
Next steps: district will provide additional budget worksheets and answer follow‑up questions at subsequent bargaining sessions and the July financial overview.
