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Committee hears repeated warnings about high-cost special education funding shortfalls
Summary
Presenters told the committee that high-cost disability reimbursements from the state are unpredictable and insufficient, leaving districts to absorb costs; speakers urged changes in state reimbursement caps and noted individual placements can cost six figures.
Committee members pressed presenters about the rising costs of special education. The presenters said the state pool for high-cost disability reimbursement is far smaller than the need, producing unpredictable year-to-year reconciliation and forcing districts to budget conservatively. "The state of Oregon has about $2,225,000,000 of need, but a budget of only $50,000,000," Superintendent Kim said, adding that districts often receive only a fraction of claimed costs.
The superintendent and finance staff described individual high-cost placements that can exceed $100,000 and said the district receives limited reimbursement—"we get 25¢ on the dollar," one speaker said—so the district must absorb the balance and plan staffing and reserves accordingly. Committee members asked whether increases in SPED enrollment and service levels were accounted for in the proposed budget and were told the district had added targeted FTE while offsetting costs through other reductions.
