06/08/2005: "$162,000 Unexpected Yearly Expense For School"

SJISD Issues Statement: Go to end of story below to access it

The San Juan Island School District (SJISD) will be paying $13,500.00 a month ($162,000.00 a year), in unbudgeted money, to provide special education for one student, who will receive their education out of state.

The problem is the result of good laws with unintended consequences. Some years ago Washington state passed a law that forbids the "confinement" of a minor except for criminal offenses. Mental or physical disabilities that require 24 hour care count as confinement in Washington, and some other states, but not in all states. Washington state also requires the State to fully fund "basic education" for all students of the state.

The unintended consequence of the two laws results in students who are found to require 24 hour care cannot receive an education in Washington. As a result, the local district that they are enrolled in has to pay for their housing, care and education, in a state that does allow the 24 hour care necessary to provide an education, as the Washington State Constitution requires.

The next part of the problem is that while the Constitution, and legislation that follows from it, creates a funding problem, the State only provides $8,000.00 a year for each student that is found to qualify for the special education programs. It has been estimated that the under funded State mandate is removing up to $108 million a year from the budgets of school districts state wide.

The shortfall of funds has resulted in the forming of a state wide "Alliance for Adequate Funding of Special Education to "ensure that the State provide adequate funding for all students in special education programs in the State of Washington." In support of this effort, the SJISD has passed a Resolution (No. 05-05) in which the SJISD Board of Directors expresses their support for the efforts of the Alliance to obtain full funding for the Special Education Programs by seeking a "judicial remedy through a lawsuit against the State".

SJI School District Superintendent Dr. Soltman was asked in an interview if there was any move by the school districts in the state to simply change the confinement aspect of the law, so that students who need the around-the-clock care that is necessary for them to receive an education, are exempt from the "confinement" clause in the existing law; this would allow the student to remain within the state, and perhaps even at home. Dr. Soltman was unaware of any such proposals or attempts at this time.

SJSD plans to apply for Federal funds to offset the District costs.

Statement from the SJI School Distict:

Remarks Regarding the Mediated Special Education Settlement

• The School District has a legal obligation to provide a free appropriate public education to such children based upon their unique needs. Federal law provides for an administrative hearing process and federal court review of special education disputes between school districts and parents.

• Federal and state laws protect the confidentiality of parents and students regarding educational program matters and districts cannot discuss the particular facts of any such cases.

• Special education administrative hearing cases are very expensive to try, often involving days of hearings, expert witness fees, pre-hearing depositions, etc., which do not provide any educational services to a student.

• Parents (but not school districts) are entitled to recover their own attorney fees if they prevail in an administrative hearing process or a federal court appeal.

• This mediated settlement will impact the District's budget along with other factors such as declining enrollment. As a general matter the settlement was in the District's best interests because their was a demonstrable need both educationally and legally for the program requested, and the District is legally responsible to provide a "free and appropriate" education to this student.

• Comparable programs in the State of Washington are either unavailable or have an even higher cost; and by reaching a mediated settlement, we hoped to avoid further expenditures for attorney fees and the other financial risks associated with further hearing proceedings or court action.

• Projected program costs for this student's placement are approximately $185,000 for the 2005-06 school year. We will attempt to obtain reimbursement from the State for the extra program costs involved through the State's "safety net" funding program, but their process will not provide a definitive answer on the amount of reimbursement, if any, until early 2006. Meanwhile, the District must prepare to absorb these costs in the general operating budget through additional program reductions.

• The state and federal government fail to fund adequately the costs associated with the special education program and the State's "safety net" procedure for high cost students is slow and uncertain. Current state and federal program revenue is approximately $9,100 per special education student per year.

• All school districts face this risk of significant costs for special needs students; the immediate issue for our District is the lack of an adequate cash reserve, a problem that the Board has identified and attempted to address in the last three years. However, any small district would be unable to sustain such a high cost placement for more than a few years without substantial support through the "safety net". Clearly this high cost placement creates an additional financial burden on an already financially vulnerable district.

• Confounding our efforts to address these budget issues is a limit on how much staff reduction and attrition can occur while still being able to sustain an educational program that meets basic student needs let alone enhancements such as co-curricular and other program enrichment.

• This mediated settlement has an immediate impact of $50,000 for this current 2004-05 school year ending August 31, 2005. As we have no fund balance and no cash reserves, we must take immediate action to make other budget reductions in order to absorb this additional cost. Effective immediately I am proposing the following budget reductions for the remainder of this fiscal year:

 Elimination of one 8 hour custodial position
 Consider further reductions of summer classified staff
 Immediately curtail most irrigation of sports fields
 Curtail most scheduled summer maintenance projects
 Implement immediate spending freeze for the remainder of the year

Now we must consider the additional program reductions necessary to balance the budget for the 2005-06 school year. This budget will be presented for board approval at the June 29, 2005 school board meeting.

Note: A public records request has been filed to obtain a copy of the settlement agreement. A "redacted" agreement removing confidential information will be made available by the District's Counsel on June 17, 2005.