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District hearing highlights persistent special-education funding gap; district covered roughly $3.1 million from local funds last year
Summary
Leavenworth USD 453 officials told the board that federal and state reimbursements fall short of special-education costs, leaving local funds to cover an estimated $3.1 million last year and forcing operational trade‑offs; the presentation outlined federal IDEA, Kansas SECA history, and local strategies to reduce contractor costs.
Leavenworth USD 453 heard an extended briefing July 13 on how shortfalls in federal and state special‑education funding affect district operations.
The district presenter said federal reimbursements under the Individuals with Disabilities Education Act have never reached the statutory 40% contribution toward excess special-education costs and that Kansas state aid has also fallen short of its 92% target. "So even though the federal government has not met their statutory requirements, we are still required to provide the same services," the presenter said.
District officials told the board the result is a local funding burden. The presenter said the district was responsible for roughly $3,100,000 from local funds in fiscal 2025–26 to make up the difference after state and federal aid, Medicaid reimbursements and grants were applied. "That 3,100,000 could not be used for all students," the presenter said, describing how those dollars were dedicated to special-education services.
The presentation reviewed how state reimbursements are allocated: catastrophic aid (for very high-cost placements), Medicaid replacement state aid (billing for medical services like speech and OT), transportation reimbursement, and special‑teacher aid. The presenter said Kansas reimbursed roughly 67% in the last year and projected about 65% for the coming year, levels below the 92% statutory target.
Officials explained the district's strategies to limit contractor costs and better retain staff, including a sign-on bonus program that reduced contracted staff from 11 to five and led several former contractors to accept district positions. "We did $10,000 sign on bonuses for SLPs, BCBA[s], those really expensive positions," the presenter said, noting a roughly 55% decrease in contracted staff.
Board members asked for details about maintenance‑of‑effort monitoring, the timing of state payments, and how a change in the state funding formula under consideration could affect the district. The presenter said special‑education aid payments are distributed on a schedule (October, December, March, June) and that districts must often float local funds until reimbursements arrive.
Why it matters: Leavenworth's identification rate for special education (22.6% at the end of the year) exceeds the Kansas average (about 17%), increasing local fiscal pressure. Board members were asked to monitor pending state changes to the funding formula and to consider advocacy in Topeka.
What’s next: The staffing report related to special education was accepted by the board; district leaders said they would return with further budget detail and continue to monitor state task‑force work on funding formulas.
