This week, state legislators took action to address ongoing concerns around rising special education costs. On Monday, while Stafford's Board of Education met to discuss its deficit, a key driver of which is increasing special education costs and lower reimbursement rates from the state, the House voted for a $40 million supplemental appropriation for special education. It passed 140-5. On Tuesday, the Senate took up the issue, passing it unanimously.
Stafford's representation at the state level split on the issue. Senator Jeffrey Gordon (R-Woodstock) voted yes, while Representative Kurt Vail (R-Stafford) voted no.
Governor Ned Lamont has hinted at a line-item veto.
So, let's get into what this money could mean to Stafford.
On Monday, February 24, 2025, Stafford’s Board of Education discussed many things, including the state of its projected deficit. Down from nearly $500,000, the current end-of-year projection is roughly $372,000 in the red and does not yet include a potential deficit in the food services line. The budget would have to take on that deficit if it remains at the end of the year.
While Interim Superintendent Dr. Laura Norbut seemed hopeful they could continue to reduce the deficit, one of the main factors driving it is unanticipated Special Education costs. With that in mind, Dr. Norbut noted that the state legislature was considering increasing funding for the 2025 Excess Cost Reimbursements. The district estimated it could receive an additional $85,000 if this funding increased.
The state reimburses school districts for any special education costs above 4.5x the amount of their normal per pupil expenditures – including out-of-district tuition to transportation costs. If Stafford’s per-pupil cost is roughly $22,000, then the district has to pay for the first $99,000 spent on a special education student – anything above that is eligible for reimbursement by the state.
Stafford is supposed to receive a roughly 90% reimbursement of those costs but typically budgets for about 70% as the state habitually underfunds the Excess Cost program. Earlier this year, Stafford heard it may only receive 64% reimbursement this year.
“Special education costs are growing at an unsustainable rate, and towns need immediate relief,” said Sen. Gordon in a statement. “This bipartisan effort is an important step in helping communities manage these costs for the current fiscal year. However, we must acknowledge that this is only a temporary fix – real long-term solutions are needed.”
The statement also noted that approximately $181.1 million is currently appropriated to the special education Excess Cost grant for Fiscal Year 2025, which falls short by an estimated $75.6 million needed to fund the grant at its statutory reimbursement levels and by $108.2 million to fully reimburse all districts for their special education Excess Costs.
“This funding serves as a down payment on the long-term help our towns truly need,” said Sen. Gordon. “I am continuing to work on solutions to improve special education funding, as seen in my proposed legislation, S.B. 590, to address these escalating costs.” The bill would require the state to completely reimburse BOEs for the total excess costs related to Special Education.