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Board hears that state reimbursement covers a fraction of special‑education costs; officials outline bookkeeping and reimbursement fixes
Summary
Directors pressed the district on Fund 27, which currently shows revenues below expenditures for special education; administration said state reimbursement covers roughly 37¢ on the dollar, explained that some special‑education revenue is recorded in Fund 10 and transfers balance Fund 27, and said the district is working to improve high‑cost special‑education reimbursement.
Directors asked detailed questions about Fund 27, the district fund that covers special‑education expenditures, and administration provided an explanation of the accounting and reimbursement challenges.
Director Herndon asked about Fund 27’s apparent revenue shortfall. "...the state doesn't reimburse us fully for the work that we do and the services that we provide to our students with disabilities," Brenda Caselli said, adding the district receives roughly "37¢ on the dollar" of state reimbursement and that a recent bill that might have provided more funding did not pass. She said MPS serves a higher share of students with disabilities than many private and charter schools, which increases local spending demands.
CFO Aitcha Saba explained that DPI regulations require revenues and expenditures in Fund 27 to be equal and that some special‑education revenues are recognized in Fund 10, which can create the appearance of a mismatch on the Fund 27 report. She said the district has begun work to "detangle" Fund 27 from Fund 10 and hired staff to better capture and reimburse high‑cost special‑education cases that now may be reimbursable at higher rates.
Board members emphasized the need for vocal advocacy to the state about underfunding for special‑needs students and noted the broader fiscal pressure such services place on district operations.
