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Stamford, CT: $2.2M SPED deficit this year; $4.9M next year; reason "unclear"

Dec 21, 2024, Stamford (CT) Advocate: Stamford schools worried over $5M jump in out-of-district special education costs


 The cost to pay for special education students in Stamford to attend out-of-district educational facilities has ballooned this school year, and local officials are worried the trend will continue.


The budget for out-of-district placements — which occur when the district is unable to provide adequate support for students with severe disabilities and pays tuition and transportation for them to attend a specialized facility — is expected to reach a deficit of roughly $2.2 million this current fiscal year.


Ryan Fealey, director of finance for the school district, said the shortfall will be covered this year through grant funds and other sources, meaning it shouldn't impact the overall operating budget.


But looking toward next year, school officials are projecting an out-of-district budget increase of about $4.9 million to the operating budget.  


"This deficit is an early warning sign for our budget in fiscal '26," said Fealey during a meeting of the Stamford Board of Finance on Dec. 12. Fiscal year 2026 begins on July 1, 2025.


The deficit this year is mostly driven by an unexpected increase in the number of students needing to be transferred to specialized providers, data shows. Over the past seven years, the number of students who fit that description increased by an average of two students every year. This year, that number skyrocketed to 23 more students.


The reason for the dramatic increase is unclear, Fealey said. 


"It may be demographic," he told Hearst Connecticut Media. "A lot has changed for some of these students born right before COVID."


However, Fealey stopped short of saying the increase is directly tied to the COVID-19 pandemic.


"It remains to be seen whether this was a temporary increase or whether there will be more to it," he said.


Additionally, the cost per placement has increased by $9,000 on average in Stamford since last fiscal year, and by $32,000 over the last three fiscal years. . . .


During the board meeting, Fealey said he doesn't expect the trend to change. One way the district can predict future needs for students is through its expanding Pre-K program.


“We can see, in a way, a pipeline of students with needs, which we couldn’t see before, and the needs do not look like they are abating," he said.


Superintendent Tamu Lucero said Stamford is not alone in dealing with the rising cost of paying for transportation and tuition for special education students with severe disabilities.

"Across all of Fairfield County, this is the same conversation," she said during the Board of Finance meeting. . . .



 

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