Finance director warns high-cost disability grant causes volatile year-to-year revenue swings

Kim Dowd, finance and enrollment director (speaker 19), presented the monthly financial report and a detailed explanation of the high-cost disability grant cycle, which redistributes a $55 million state pot to reimburse districts for special-education costs above a $30,000 threshold per student. Dowd showed that district estimates and later reconciliations can produce significant volatility: for the 2023–24 cycle staff projected a grant payment but now expect a payback of roughly $481,000 upon reconciliation.

Dowd described the multi-step timing: districts submit estimates well before actuals; the state issues an initial distribution and later recalculates based on reported actuals, which can result in districts returning funds. She said the district has raised the issue with the Oregon Department of Education and through superintendent groups and that the legislature is discussing increases to the fund (hearings on raising the pot were reported). Dowd recommended conservative budgeting and noted that, even with the high-cost grant uncertainty, the general-fund projection still shows a positive ending fund balance under current assumptions.

Board members discussed options including taking lower estimates to avoid later paybacks, setting aside contingency funds and continuing advocacy for better statewide estimates and accountability. Dowd and the superintendent said they will continue to pursue clarity with ODE and present updated budget assumptions as reconciliation information becomes available.