School Business Insider – Episode Summary: “Righting the Ship: Navigating Financial Challenges in Special Education”

Released: April 29, 2025

Introduction

In this compelling episode of ASBO International's official podcast, School Business Insider, host John Brucato engages in an in-depth conversation with Cindy Reilman and Dr. Michael Macklin from the Special School District of St. Louis County (SSD). The episode, titled “Righting the Ship: Navigating Financial Challenges in Special Education,” delves into SSD’s ambitious financial strategy, the “Righting the Ship” plan, aimed at addressing a significant budget deficit while maintaining the district’s core mission of providing exceptional special education and career technical education services.

Understanding the Special School District of St. Louis County

Cindy Reilman begins by outlining SSD’s unique role within the education system. Unlike most school districts that handle their own special education staffing, SSD partners with all 22 St. Louis County districts to deliver special education services in the least restrictive environment (00:01:48). This collaboration allows SSD to serve nearly 24,000 students, operating five special education schools and two career and technical education (CTE) schools. Reilman emphasizes, “We are able to provide the work with our partners, which is key” (00:03:31), highlighting the district’s extensive reach and collaborative model.

Financial Challenges and the Righting the Ship Plan

The conversation shifts to the financial hurdles faced by SSD, with a projected budget deficit of approximately $74 million. Cindy explains that rising operational costs, decreased state aid, the expiration of pandemic-related funding, and increased staff compensation have all contributed to this deficit (00:07:42). Dr. Macklin adds, “Funding for special education across the nation is expected to drop 10 to 20%” (00:08:54), painting a picture of a nationwide trend affecting SSD’s financial stability.

Core Components of the Righting the Ship Plan

Reilman outlines the three strategic pillars of the “Righting the Ship” plan:

1. Capital Projects Reallocation (15:40): SSD allocates a portion of its budget to a capital projects fund for maintaining and improving infrastructure. Reilman notes, “By reserving the 4 cents, the general operating fund, the district is adding approximately about $13.4 million in revenue to the budget” (00:15:40). This strategic reallocation ensures long-term financial health without compromising essential services.

2. Comprehensive Staffing Plan (15:40): Addressing staffing inefficiencies, SSD has introduced a comprehensive staffing plan aimed at right-sizing. Over the past four years, the district added 414 staff members at a cost of approximately $26 million, but student needs, measured by Individualized Education Program (IEP) decisions, have decreased by nearly 26 minutes per student (00:15:40). This adjustment ensures that resources are directed towards areas of greatest need.

3. Non-Wage Cost Containment (15:40): Dr. Macklin explains, “We are having conversations about finance and the services that we provide and what that looks like” (00:29:20). SSD meticulously examines operational expenses such as supplies and services to identify savings opportunities without affecting the quality of education.

Implementation and Communication Strategies

Effective communication has been pivotal in implementing the plan. Reilman shares, “Over communicating was really our strategy to ensure that we were able to be transparent and share the information through multiple channels” (00:25:10). SSD has engaged in 47 touchpoints with stakeholders, including community members, staff, and parents, utilizing newsletters, dedicated web pages, and meetings with partner districts to maintain transparency.

Dr. Macklin adds, “We cannot make decisions up at our level without knowing what's truly happening down at the school level” (00:31:28), underscoring the importance of grassroots insights in shaping financial decisions.

Short-Term Results and Future Goals

Since the implementation of the “Righting the Ship” plan, SSD has achieved notable progress. Reilman highlights, “We’re already down about $20 million in deficit spending, from $75 to $55 million” (00:33:30). This reduction demonstrates the effectiveness of the proactive measures taken. Looking ahead, the district aims to maintain and further decrease the deficit, enhance student outcomes, stabilize fiscal growth, and improve staff retention (00:36:03).

Lessons Learned for Other School Business Officials

Reflecting on their journey, Reilman offers valuable advice for other education officials facing financial challenges:

1. Transparency and Collaboration: “Transparency and collaboration is the key” (00:38:02).
2. Early and Frequent Engagement: Engaging stakeholders early and often helps build trust and mitigate misconceptions.
3. Initiative and Proactivity: “If it is to be, it is up to me. You got to get started” (00:38:02).

Closing Thoughts and Key Messages

As the episode concludes, Reilman shares a poignant message: “You’re going to have to make tough decisions about people who you care about. And unfortunately, don’t shy away from those tough decisions” (00:38:51). This encapsulates the essence of SSD’s journey—balancing fiscal responsibility with compassionate leadership to ensure the sustainability and excellence of special education services.

Dr. Macklin reinforces the collaborative spirit, stating, “We’re all in this together” (00:40:16), emphasizing the collective effort required to navigate financial uncertainties.

Conclusion

“Righting the Ship: Navigating Financial Challenges in Special Education” offers a thorough exploration of how SSD is proactively addressing financial deficits while maintaining high-quality special education services. Through strategic budgeting, comprehensive planning, and unwavering transparency, SSD serves as a model for other districts facing similar challenges. Listeners are encouraged to visit SSD’s dedicated webpage for more information and to reach out for collaborative support.

Key Quotes:

• “We are able to provide the work with our partners, which is key.” – Cindy Reilman (00:03:31)
• “Funding for special education across the nation is expected to drop 10 to 20%.” – Dr. Michael Macklin (00:08:54)
• “By reserving the 4 cents, the general operating fund, the district is adding approximately about $13.4 million in revenue to the budget.” – Cindy Reilman (00:15:40)
• “Over communicating was really our strategy to ensure that we were able to be transparent and share the information through multiple channels.” – Cindy Reilman (00:25:10)
• “If it is to be, it is up to me. You got to get started.” – Cindy Reilman (00:38:02)
• “You’re going to have to make tough decisions about people who you care about. And unfortunately, don’t shy away from those tough decisions.” – Cindy Reilman (00:38:51)

This episode serves as a testament to the resilience and strategic planning required to sustain and enhance special education services amidst financial challenges, providing invaluable insights for school business professionals worldwide.