Small school districts find special ed ‘safety net’ can be tangled web

Lake Stevens lost about $140K in special education refunds due to clerical errors. Avoiding a repeat will consume staff resources.

NO CAPTION. Logo to accompany news of education.

LAKE STEVENS — A single typo on an application for special education funding can cost the Lake Stevens School District thousands of dollars.

Last year, Lake Stevens lost out on about $140,000 of “safety net” refunds because of “fiscal adjustments,” largely due to paperwork errors. This year, district staff will dedicate more time and resources to document their costs in hopes of boosting safety net earnings by a half-million dollars.

“We have never chased the dollar as much as we are now,” Assistant Superintendent of Business and Operations Teresa Main told the school board in July.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

The chase highlights a “massive inequity” in the safety net system, said Mari Taylor, school board president. Smaller school districts can’t afford dedicated staff to file the reimbursement paperwork, leaving them at a disadvantage to get state funding.

The state’s special education safety net has existed in some capacity since the mid-1990s, said Amber O’Donnell, program specialist for the state superintendent’s office. It pays back money that school districts spent on special education, beyond what was funded by the state and federal goverments.

The burden is on school districts to ask for the refund and prove their spending qualified for a return, Main said.

Jeff Moore, director of finance for Everett Public Schools, likened it to submitting an expense report for work. You pay for the gas or food, then file a request to have those work-related costs reimbursed. The same goes for the safety net: A school district pays extra for special education programs, then they apply to recoup some of those costs.

Instead of a picture of a receipt or mileage log, though, districts have to submit pages of paperwork. That includes expense reports, safety net worksheets, purchase orders, invoices, detailed learning plans and supporting documents, such as a behavior intervention plan. Any errors — a typo, an unaccounted for absence, a missing signature — decreases the final reimbursement. Four mistakes disqualifies an application entirely.

‘Burdensome on our system’

The state has strict requirements for what can be reimbursed. For example, districts last year could only apply for costs related to special education over $35,000. If a student spent time in a regular classroom with a “general education” teacher, those costs were not refundable. If a child’s special education cost $34,999, the expenses didn’t qualify for safety net dollars.

“It’s a really highly scrutinized application process,” Moore said.

Larger school districts often dedicate one or two employees to focus on safety net applications. That’s the case in Everett, a district of about 20,300 students.

But smaller school districts usually have multiple people from their special education and finance departments work together to gather paperwork and apply.

In Arlington, a district of about 5,500 students, assembling safety net applications takes about a month, said Dave McKellar, Arlington schools’ director of special education. A four-employee team goes “all hands on deck” and works “around the clock,” McKellar said. During that time, the department’s response time lags for phone calls and emails.

“It’s burdensome on our system,” McKellar said.

Last school year, Arlington submitted applications for 18 students, totaling about $629,000. In its final award, the district received about $529,000.

“The experience and the process is a lot of work to get that money back,” McKellar said. “This is why Seattle Public Schools can hire people to do safety net, because they get so much back, it pays for their salary.”

OSPI officials said they know the application process is cumbersome. They continue to adjust the system in an effort to make it easier for districts.

In recent years, for example, the state started prorating awards, said O’Donnell, the state program specialist. Instead of completely denying an application if a student’s learning plan contained just one error — as the office used to do — now the state agency decreases a request based on the number of errors found. If there’s just one thing wrong, a district will receive 85% of its ask. An application being denied altogether is “really uncommon,” O’Donnell said.

“It’s usually just one, maybe two (mistakes),” she said. “… It’s pretty common to have adjustments on applications, but they still receive funding for the majority.”

‘I know it’s a lot’

The safety net team knows smaller districts often struggle to navigate the system. It’s something that comes up almost every year in an annual survey, O’Donnell said.

One unidentified district in 2021 wrote that the process was “an exceptional burden for districts that do not have the manpower to spend on each IEP (individualized education plan)/cost.” The submission added that the burden “creates inequity.”

“We are in the process of trying to get a contract in place to build an application platform to help streamline the application process and have it all in one place,” O’Donnell said. “I’m really hoping if we can get that. … It will help to make it a little easier to navigate applications, because I know it’s a lot.”

She added that the safety net — and potential improvements to the system — will inevitably come up in legislative discussions this fall.

At a Lake Stevens School Board meeting in July, board Vice President David Iseminger noted the “necessity of holding discussions with legislators” to improve the safety net, not just for his district but others with fewer resources. It would help address the inequity rural locations face in affording robust special education programs, he said.

“Clearly it’s possible (to get funding). It’s just a matter of being unable to access those safety net dollars because it’s such an arduous process,” Iseminger said.

The Lake Stevens School District is considering hiring another staff member to focus on safety net applications. Regardless of what happens, the finance department will dedicate more attention to application materials, said Main, the assistant superintendent of business and operations. She said she is grateful districts can recover some costs.

“I just wish it was a little bit easier for districts to capture all the dollars they are spending above what’s allocated to them,” Main said. “In layman’s terms, I wish the state and feds would fully fund special education.”

Mallory Gruben is a Report for America corps member who writes about education for The Daily Herald.

Mallory Gruben: 425-339-3035; mallory.gruben@heraldnet.com; Twitter: @MalloryGruben.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Aaron Weinstock uses an x-ray machine toy inside the Imagine Children Museum on Tuesday, Dec. 3, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Imagine Children’s Museum $250k grant reinstated following federal court order

The federal grant supports a program that brings free science lessons to children throughout rural Snohomish County.

Snohomish County 911 Executive Director Kurt Mills talks about the improvements made in the new call center space during a tour of the building on Tuesday, May 20, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
New 911 center in Everett built to survive disaster

The $67.5 million facility brings all emergency staff under one roof with seismic upgrades, wellness features and space to expand.

Everett
Five arrested in connection with Everett toddler’s 2024 overdose death

More than a year after 13-month-old died, Everett police make arrests in overdose case.

Madison Family Shelter Family Support Specialist Dan Blizard talks about one of the pallet homes on Monday, May 19, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Madison Family Shelter reopens after hiatus

The Pallet shelter village, formerly Faith Family Village, provides housing for up to eight families for 90 days.

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

Everett Historic Theater owner Curtis Shriner inside the theater on Tuesday, May 13, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Historic Everett Theatre sale on horizon, future uncertain

With expected new ownership, events for July and August will be canceled. The schedule for the fall and beyond is unclear.

The Mukilteo Boulevard Homer on Monday, May 12, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
‘Homer Hedge’: A Simpsons meme takes root in Everett — D’oh!

Homer has been lurking in the bushes on West Mukilteo Boulevard since 2023. Stop by for a selfie.

Pat Cronin and Jamie Lyon look over a zoning district map draft of Everett on display during an Everett Planning Department open house at Everett Station on Wednesday, Feb. 26, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett to release final draft of comp plan

The city will release the draft of the planning document on May 30, staff said. It will likely go to a vote before the council in June.

Traffic moves across the US 2 trestle between Everett and Lake Stevens on Wednesday, Oct. 9, 2024. (Olivia Vanni / The Herald)
Washington climate goals jeopardized by U.S. Senate vote

The U.S. Senate revoked waivers allowing Washington to mandate strict vehicle emission standards

The Everett City Council on Wednesday, April 16, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Everett City Council approves apprenticeship ordinance

The new ordinance builds upon state law, requiring many city public works contracts to use at least 15% apprentice labor.

Logo for news use featuring the municipality of Stanwood in Snohomish County, Washington. 220118
Stanwood nears completion of deployable floodwall

The new floodwall will provide quick protection to the downtown area during flood conditions.

Cars drive along Cathcart Way next to the site of the proposed Eastview Village development that borders Little Cedars Elementary on Wednesday, May 7, 2025 in unincorporated Snohomish, Washington. (Olivia Vanni / The Herald)
Former engineer: Snohomish County rushed plans for Eastview development

David Irwin cited red flags from the developers. After he resigned, the county approved the development that’s now stalled with an appeal