Board briefed on Lakeland School revenue shortfall tied to state aid and reimbursements

Matt, a Lakeland School staff member, told the board the district faces a projected revenue shortfall driven by state aid formula limits, attendance-based reporting changes and rising expenses in other districts. He said the aid formula itself has not kept pace with costs, and that the timing and calculation of reimbursements make budgeting unpredictable.

"High cost special education aid: we budgeted 430,000. We received, 329," Matt reported, summarizing a shortfall in high-cost special education reimbursements that changed expected percent reimbursement from a projected 50% to roughly 31% in the recent year.

Matt also identified Medicaid billing rates and the number of billable services as factors affecting revenue. He told the board that seclusion and restraint incidents dropped 95–96% compared with a 2023 baseline (only five incidents in the year), which removes a previously useful indicator in the district’s capacity modeling. In contrast, standby calls used for behavior support rose by about 128% year-over-year, and attendant-care minutes vary widely across students.

Matt recommended closer monitoring of fund balance, using current and historical data for budget projections, and preparing for the possibility of a higher tax levy if revenues remain constrained. He warned that reducing staff or programs can reduce future revenue because the aid formula uses prior-year expense data.

Board members asked clarifying questions about attendance-based reporting and the magnitude of potential shortfalls. Staff noted attempts to obtain statewide expense data from the Department of Public Instruction to improve forward-looking estimates.