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Wayzata finance slides show special-education cross-subsidy remains significant
Summary
The presentation said special education cross-subsidy reimbursement remains about 75%, leaving the district covering roughly 25% of special-education costs; staff noted this continues to pressure general fund dollars.
During the June 23 finance presentation, district staff described the special education cross-subsidy and the state aid mechanism designed to reduce it.
Slides explained the cross-subsidy calculation and stated that special education cross-subsidy continues at approximately 75% reimbursement, meaning an estimated 25% of certain special-education costs remain uncovered by aid and are borne by the district. The slides also explained the Cross-Subsidy Reduction Aid origins and adjustments, noting the percent applied changed for SFYs 2024–2026 and will increase to 50% starting SFY2027 under state calculations.
Finance staff indicated the cross-subsidy increases and higher special-education needs are a driver of anticipated higher expenditures; the presentation also noted using $1.5M of federal dollars to pay special education tuition bills in the FY2025-26 preliminary budget.
