Righting the Ship: Navigating Financial Challenges in Special Education

Summary

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.

Transcript

[John Brucato]

You're listening to ASBO International's School Business Insider. I'm your host, John Brucato. Each week on School Business Insider, I sit down with school business officials and industry experts from around the world to share their stories and explore the topics that matter most to you. Find out what it means to be a school business official and get your insider pass on all things school business. Hi everyone, and welcome back to School Business Insider. Today we're diving into a compelling conversation with Cindy Reilman and Dr. Michael Macklin from the Special School District of St. Louis County. SSD recently launched its Right in the Ship plan, an ambitious financial strategy designed to address a significant budget deficit while preserving the district's core mission. We'll explore how they're navigating these challenges, implementing strategic changes, and ensuring a stable future for students and staff. Stay tuned today for an insightful discussion on financial leadership, tough decision making, and the impact of sound fiscal policies in public education. Cindy and Dr. Macklin, welcome to the podcast. I'm happy to have you.

[Dr. Michael Macklin]

John, good to see you again.

[Cindy Reilman]

Great to be here, John. Thank you for having us.

[John Brucato]

Absolutely. And thank you both for first giving me a little bit of your time today and excited to kind of really unpack what you've been doing at Special school district of St. Louis County. So why don't we just kind of dive into it? If you can give me a little bit of an overview of the Special school district of St. Louis county and its unique role in the education system. Because I know, Cindy, you and I talked as you were kind of getting into this role. It's a little bit different than what you were used to. So I'm really interested to share your story and really what the district is all about with our listeners.

[Cindy Reilman]

Yeah, Special SSD really provides special education and then also career and technical education to students in St. Louis County. We have the blessed privilege of partnering with all 22St. Louis county districts to ensure that students receive special education services in the least restrictive environment. Meaning majority of our staff work in their partner schools, which is a little bit different model than most of the models across the state are. Really across the nation, most models provide school districts in their own work around provide their own special education staffing. But we partner with our county school districts to be able to do that. And that's really a plus because typically when you talk about just funding challenges and when you have funding challenges, because for most school districts you're thinking of students with disabilities are really only about 10 or 13% of their population. Right. And really that's 7 to 13% of the population. And so typically, unfortunately, John, programming around those pieces are really first to get cut. And so being able to provide the work with our partners is key. We currently serve right now, right. A little bit less than 24,000 students and provide multiple services. Additionally, we operate five of our own schools, special education schools, and then two career and technical education schools. I think, I think again that in 1957 by the voters, a county wide tax levy was put in place to ensure that the success of the just the revenue streams relates to special school districts.

[John Brucato]

So to your point, that is really unique and not something that I'm all too familiar with. So I just want to make sure I understand kind of the setup here. So ssd, you have teachers that go into partnering school districts, is that correct? But you also have your own schools as well.

[Cindy Reilman]

You got it, John. So we have not only teachers, but all related services OT pt. Right. SOP Speech language pathologists. Right. And going to really to provide the services that are needed for students in those space and place. And then in addition to that. Correct. We operate five of our own schools as well, and then two of the two tech schools.

[John Brucato]

So. So what's that kind of demarcation then? I mean, I'm assuming school districts, your typical school district, I'll say in St. Louis county, do they have their own special education program and then rely on you for more specialized services or does Everybody go through SSD for special education services?

[Cindy Reilman]

Everybody goes through SSD special education services, St. Louis County. And so, you know, because of those pieces now, everyone in the county is in different places and places, different spaces and places across the county. But SSD provides the special education programming for the entire county.

[John Brucato]

Interesting. And so what is really kind of the decision point of whether to have SSD staff and related services come into your to a partner district or have kids actually in one of your schools?

[Cindy Reilman]

Well, a lot of that is really the needs of the student. You know, because of fape, we educate students in the least restrictive environment. But a lot of that is really the needs of the students. And our schools are really built to address students who have needs that aren't able to be met in that space in place. And when you talk about continuum of services and what those pieces really mean. And so we're happy to provide these pieces. We are excited in all of our spaces and places to provide the services. I think also in our tech schools. Right now we are placing about 86% of our graduates in our tech schools in the field with five figure salaries. And so tech school for students used to be a option, but for many students right now it's the only option. There's a report that came out yesterday that said that by 2030, St. Louis is going to need 300,000 more welders. And so at the end of the day, our trays that we provide all the way from of course, welding to cosmetology to diesel, I mean, the gamut's there and we're just excited about those pieces. Our tech schools also.

[John Brucato]

Yeah, you know, you make a great point. And I think what you're experiencing in St. Louis is really no different than kind of nationwide. What many districts are seeing in terms of what the demands are from the workforce. Those skilled labors, vocational programs are really kind of on the upswing where, you know, a lot, a lot of school districts, especially around me, were so focused on college placements in that traditional sense, where now it's kind of swinging the other way where the trades are really kind of the focal point. So it's great to hear that SSD is really kind of spearheading that in your area as well.

[Cindy Reilman]

Yeah, well, and also for us, you know, the trades really provide the hands on learning pieces. So we're. Anytime that we believe students, you know, I always tell parents, it's great to have your son or daughter come and figure it out why it's free until you have to before you have to pay a bill. And so we like those pieces also. Right.

[Dr. Michael Macklin]

One of the challenges we have, John, is we are actually at capacity. And so we actually have wait lists.

[Cindy Reilman]

Yeah, yeah. We have about 500 students at each of our schools on a wait list. Just because of some of those pieces and because of the need, we have grown over 100% the last really couple of years. And just again, it's just the need. And now we battle the needs of the program versus industry needs. Right. Everyone may want to be, and I'm just using just a generic, but everyone may want to be a cosmetologist, but does the industry need that? Right. And so we're battling those pieces now, but we are looking at ways to expand our tech schools and so that we can provide more programming options for students.

[John Brucato]

That's great. All right, so let's talk finances a little bit. I mean, writing the ship. The plan that SSD is really spearheading right now is very much related to projected budget deficits. Can you tell me what are kind of the key factors that led to SSDs projected? I believe it's about $74 million budget deficit.

[Cindy Reilman]

Yeah, there are a couple of factors I think John, that really goes into that. I think just the, you know, rising costs, you know, really a decrease in state aid formula, you know, expiration of the pandemic provision. Those were also some pieces, you know, increase in expenditures. You know, I think, you know, you talk about just compensation and benefits for the staff. I think all those pieces are really, really at one time has really led to just the deficit spending and what that really means for the organization. I think the school of Education actually noted that funding for and this is just across the nationwide is expected to drop 10 to 20%. Right. And so, and so for us, you know, we were, we, we were in this space in place. And so that's really what led to the deficit spending.

[John Brucato]

Is SSD funded the same or differently than your traditional A12 school district in Missouri.

[Dr. Michael Macklin]

So we are actually very similar to a K12 district. However, we do have our own set tax rate as Dr. Macklin mentioned earlier, when in the establishment of special school district a tax rate was set. So we do set a tax rate just like all the other districts. We are very heavily federally funded. Right. So idea is a big portion of our 70 million plus of federal revenues that we receive. But primarily because we cover all of St. Louis county, our property tax is the biggest portion of our revenue. So very, very similar to on a revenue side as any other K 12 public education district. However, our expenditures are just so different because we focus all on special education and career education.

[John Brucato]

You know, being so heavily reliant on federal funding, I'm sure is worrisome for you right now. Just kind of with everything swirling around, are you, are you having a lot of discussions internally and like what plan B, C and all the way to Z could be if, you know, the education department funding is cut, eliminated, who knows what's going to happen. What is, what does that look like for you guys?

[Cindy Reilman]

Yeah, John, you bring up a great point. We're actually hosting two legislative nights, one for our staff here at the end of April and then another one in May just for our families, just to discuss what these pieces are. You know, as Cindy Rodman said, you know, we receive 70 plus million dollars in federal funding. And so what those pieces really mean, I think, you know, for us, we are committed to the work and committed to ensuring that students with disabilities have what they need. And so those pieces are driving factors. We are, we are fortunate that some of these pieces, you know, even though executive order, you know, there are some of These pieces, IDA is really funded by law. And so at the end of the day, law oversees and precincts some of these pieces. So we are fortunate about those pieces.

[John Brucato]

Yeah, yeah. So what point did the district leadership realize a major financial shift is going to be needed? You know, Dr. Macklin, you mentioned, you know, setting the stage in terms of, you know, what led up to this point. But, you know, when did you guys really realize, like, okay, we need to have a long range plan here and a strategy to veer away from these budget deficits and definite deficit spending, as you said?

[Cindy Reilman]

Well, it was always my goal. I became superintendent interim in October of 23 and then became superintendent in 24. And you know, John, I always look to say, for me, I want special school district not to. Not to be surviving, but thriving many years from now. There've been a lot of people who have done a lot of great work to ensure that students with disabilities are getting their needs and services met. And so for me, that long range planning really started with my first goal, just reviewing district operations and finances. And the review actually identified just some of the rising cost and then the slow revenue growth as really significant concerns. And so when highlighting those pieces, it was very evident that there was a need for corrective action to really safeguard the district's financial future and to set a clear path to stabilize the budget and really strengthen SSD's financial foundation.

[Dr. Michael Macklin]

Yeah. One of the slides we use a lot, John, in the presentations when I first got here was a fund balance graph. Right. And so it shows how the fund balance was just really significantly decreasing in the future years going forward. And that really has had sparked a lot of the conversation and writing the ship, riding the ship strategies going forward.

[John Brucato]

Right. So before we get into too many core components of the plan, Cindy, I have a question for you. You know, I, we. We've talked offline a lot about kind of your transition into ssd. What has it been like for you? I mean, you, you're, you're, you're coming from kind of a what I guess I'm classifying as a traditional K 12 school district. How has your approach to, to budgeting, to just operations changed since being at ssd?

[Dr. Michael Macklin]

So, John, to your point that we've talked a lot offline, you know, when we did our presentation on transitioning into districts, when we moved to a new district, we learn a lot. Right. We don't come in thinking we can bring all the things from our previous worlds into this world. And that's again, the same approach I took at special School district. I know school finance, but truly diving in and truly understanding special education and the partner district environment and the uniqueness that we offer in St. Louis county was. Was the goal. Right. And so it's been interesting. We. We have special in our name for a reason. We do do some special things. And so I've. I've really just tried to learn and get acclimated and try to figure things out. For the most part, you know, the finances are still finances. I think Dr. Macklin mentioned a month or so ago that out of the 14 budget presentations or whatever at that time that have gone to the board of education, I've done over half of them. And so just kind of coming in, making sure our board and our governing council, because we have two entities that we actually report to and that govern us, we not only have a board of education, but we have a governing council that consists of the members representing the 22 partner districts that we're in. And so just making sure we can communicate our financial situation and position to both of those entities, as well as our taxpayers in our community has been huge. So I've learned a lot. I can tell you this is an amazing team here, and these kids are extra special. And so it's just been amazing knowing and getting out into our spaces and seeing how our special education spaces in our schools, what drives them, what we need. You know, our supply budgets are not like normal K 12 public school district supply budgets. Right. They're a lot different when you're buying an automobile for your diesel mechanics class. And, you know, I was in a class with Dr. Macklin a month or so ago, and it was a dental hygienist class. And so we've got all sorts of unique equipment and opportunities for our students. So it's really been exciting to see this side of it and delve more into the special education space than regular, just general education that I've been in.

[John Brucato]

That's great. And you know, to quote you from your presentation we did together, really sounds like you have been adopting that, listen, learn lead model transitioning over to ssd. So that's great. So. So tell me specifically about the writing the ship plan. This is really your strategy and implementation in terms of kind of reducing that projected deficit. Can you break down the core components of this plan?

[Cindy Reilman]

Yeah, there's really three pieces to it, and then, you know, three strategic pieces to the plan. The first piece really revolves a lot around capital projects, reallocation. So each year SSD allocates 7 cents. I say cents, but it's really millions off of those cents to a capital project fund to maintain improvement and building infrastructure. We just had our 10 year facility plan that Kevin Ander presented to our board of education that did a great job. Really the next 10 years, really a rolling 10 years. So each year we add a year. But one of the things that I noticed and just being in the space and places that that our buildings are in really good shape. They've been well kept, well maintained. And so the plan calls for to really allow $0.03 to capital projects fund, reserving the rest of the cents really into the general operating fund. By reserving the 4 cents the general operating fund, the district is adding approximately about $13.4 million in revenue to the budget. So I think that's number one and that's key, John, because a lot of the misconception about the writing ship is that it's all about staffing. It's all about staffing. We couldn't do it just with all about staffing. There's some other pieces that need to be able to be able to add it to those pieces. So I think really the capital projects is number one. The next piece is really a comprehensive staffing plan and that involves really right sizing, right sizing to ensure support is directed in the areas of the greatest needs and also to ensure that when you're right sizing. I think over the last four years Special School District has added 414 staff approximately around that number to the tune of about $26 million. But when you look at the needs of students and I go by IEP team decisions, that number has decreased by almost 26 minutes per student. So I think at the end of the day, being on the right side, some of these spaces and places is key. And then the last one is really what I would call non wage cost containment. And so being able to contain the cost you have because you can do all of those two pieces right, but if you can't contain what you have, and that really looks like closely examining operational expenses such as supply services, funds, supporting students and what these pieces really mean. Cindy mentioned it and so she has done. And again this is just about a transparency and B being able to present and really be able to provide the information that's really needed. But she's done 60% of our board of education presentations this year because the budget is such a key piece and we want to be transparent about it. We also want to be able to delve into what the pieces really mean and to really be able to progress monitor those pieces. And so those are really the three main components of writing the ship.

[Dr. Michael Macklin]

I would expand a little bit on that, John, and the fact that on the staffing piece, you know, our district, we, we have really focused on equity, commitment and collaboration. Those are three of our main goals. And so when you talk about equitable staffing throughout, you know, a county wide system, right. All of St. Louis county, and trying to make sure that you've got the right staff, right amount of staff in the right schools and in the right partner districts, that's been a huge challenge. But our staff has been amazing at working through that and really collaborating with all 22 partner districts to make sure that our staffing is in the right place in order to support students and provide the services that they need. So it's been unique and exciting to be a part of and to see that work take place because it's a whole different way of staffing. Right. It's not like a normal K12 public education school district with how they might staff things due to class sizes. Right. And so that's been very exciting. And then the capital projects fund to what Dr. Macklin said, we are in really good shape financially. And so to evaluate what we really need to fund in capital projects versus what we can place in general operating to cover those general operating expenditures and still maintain our buildings and our capital outlay and lease purchase agreements has actually been really, really a well thought out plan.

[John Brucato]

So tell me a little bit more about that. You've really outlined the three pillars of the plan, the three focal points in which you're writing the ship. There are so many different components to not only just the budget, but just school operations. And especially from what I'm learning from ssd, it's very unique in a lot of ways. How were you able to decide where to make these budget adjustments while really prioritizing the minimized impact on students and staff?

[Cindy Reilman]

Yeah, our top priorities was really maintaining essential services for student while also ensuring fiscal responsibility. So those are twofolds. Right. The quality of service delivery cannot change, but we also want to ensure that we are fiscally sustainable at the end of the day. And so addressing the staffing inequities as Cindy really spoke to, just in just some of our space and places and speak for particularly in our high needs areas, but also focusing on making decisions that strengthens long term stability. So I think at the end of the day, keeping students at the need of every single center of decision is really, really the biggest priority as we made these decisions.

[John Brucato]

So when you look back on those decisions that you've made, what were some of the toughest ones you had to kind of take part in this process.

[Cindy Reilman]

I think John, anytime, I think anytime. Some of our spaces vacancies rate were 30%, 40%. And so when you look at, I think right now our district wide vacancy rate after doing some reallocation has dropped down to about 6%. Right. And so the hardest decisions, and again it's done with empathy, but the hardest decisions really around reallocating staff. Knowing transition is hard for anyone, especially when you've developed a family, especially when you're dedicated to a specific school. Balancing that fiscal responsibility while impacting the day to day lives and roles of individuals is never ever easy. And it's something that I take to heart. You know. In addition, we're also able to ensure that all students, every student is equity receiving services.

[John Brucato]

Moving forward, did you find yourself having to move staff primarily? Are you reducing staff? What is really, has that been for you?

[Cindy Reilman]

Yeah, so I think there's, there's twofold. We, we did reallocate staff and so we did reallocate staff for some of those pieces. I think also we have looked at just what we can do through attrition and as far as not, you know, not filling positions that became vacant. And so I think those are, are twofold as it relates to those pieces.

[John Brucato]

Got it. So Cindy, you had mentioned the reallocation of the, the capital projects fund and the general operations drawing on that a little bit more to, to, to fund what's going on. You mentioned you guys are in great shape. Is that why you're able to do this? I mean, you know, beat a strong foundation obviously is very important but you know, these buildings will need some kind of tune up or reconstruction I'm, I'm sure in the future. How are you able to kind of reallocate this money long term?

[Dr. Michael Macklin]

So as Dr. Macklin said earlier, the 7 cents had been in there for a while and so we built up a pretty decent capital projects fund balance when I got here and so allocating the remaining cents. So this year we allocate reallocated $0.04 to the general fund to drive those revenues, knowing that we didn't really have a lot of capital expenditures needs in order of maintaining our buildings. Right. And so each year, especially now that we have the 10 year facilities plan that Dr. Macklin alluded to just a minute ago, we can evaluate those needs and those plans going forward and say okay, do we need to allocate $0.03 this year? Do we need to allocate $0.04 this year. And so we can fluctuate those pennies in the capital projects fund to drive the revenues needed to offset the expenditures of the fund. The nice thing is with having a healthy fund balance right now in that fund is, you know, we can, we can break even with our revenues and expenditures, leaving that healthy fund balance for all those unanticipated or emergency type situations. So, you know, if we have a water main break or if we have some underground situations or different things like that that we can't control, we absolutely have the funds that we can allocate to take care of those items and those needs. So yeah, it's, it's, it's a nice place to be in the, in the capital fund. And being able to reallocate those funds over to operations is, is a key measure of our strategy.

[John Brucato]

That's great. There's a lot that has gone into this plan that's obvious. But how do you communicate such a plan to your staff, parents, other schools? I mean your model, obviously you, you need to survive, you need to be sustainable because without you, special education services sound like they would be non existent for, for those other districts. So, you know, there's a, there's a lot of emotion surrounding, you know, parents and their kids when it comes to special ed and special ed services. There's a lot moving. How are you able to communicate this effectively to all those involved?

[Cindy Reilman]

So I think, I think John, that the first thing is we really want to communicate that just transparency. I mean we had a, we had a fun balance that in five years would have started at 43% and in five years be at negative 7%. Right. And we're not speaking of fund balance. That's $20 million. Cindy can give you the numbers of what our fund balance was at that point, but we're talking about 200 million plus fund balance that would have went to negative 7% in five years. So for me it was very, very important, especially for us to. Very, very important to communicate often and with as many stakeholders as possible. So I will tell you, between January 24th until November 24th, there were 47 touch points meeting with community members, meeting with staff. We were just transparent and sharing information through multiple channels to reach all stakeholders. And then that included a dedicated webpage that we have to write in the ship and include updates and employee newsletters and spotlighting family newsletter. It includes sharing with regional leaders at our superintendent meetings, include our partner school district communication professionals. It included our PAC meetings which is our parent advisory council governing Council board of education meetings, collaborated with media news stories on our website. As a matter of fact, Cindy also hosted the CFOs. Right. And so to really to be able to speak to them about what our pieces really were and what these pieces. So at the end of the day over communicating was really our strategy to ensure that we were able to be transparent and share the information through multiple channels.

[Dr. Michael Macklin]

Yeah, we've done many presentations. Dr. Macklin's part of a superintendent roundtable and so in order to have communication at all levels. Right. So we have the superintendent roundtable that we present to and communicate. As he mentioned, we brought in the CFOs. The unique thing about special school district is not only do we work with the partner districts, but we have district liaisons. Right. So that's employees in the partner districts that we work with and understanding and communicating with what SSD is doing and stuff. So we had combination of CFO and director, liaison or district liaison meetings. We have meetings with our directors that are out in the partner districts. There are employees that are out working with area coordinators in the buildings and stuff. And so making sure that we're communicating at all levels from superintendent down to staff, parents and stakeholders, all community stakeholders, has been a very key piece of our communication strategy.

[John Brucato]

That's great. You know, I have to imagine school finance isn't your typical dinner table conversation. So were there any, were there any misconceptions? Did you encounter any pushback from those that you spoke to? I mean, I think you said what, 47 touch points. It's a lot of opportunity to not only disseminate information, but for information to be misconstrued or just misunderstood. Did you face any of that and how so, or rather, you know, when, if you did, how did you kind of address it?

[Cindy Reilman]

Yeah, I think there was, I think there was always misconceptions about really just, just the fun balance of what these, these pieces were. I think there were just some skepticism. You know, for me, John, you know, ever since day one, I never focused on decisions of past leadership. You know, what I said is this is the cards that we have, this is the plate that we're dealt with. This is how we're going to move forward. And at the end of the day, always looking forward and being able to move forward with those pieces is key and really emphasize the plan as a multi year step strategy. It's not going to happen overnight. And so understanding that through this transparent communication and listening to feedback is really how you work to really build that trust and to negate those misconceptions.

[John Brucato]

Right. You know, Cindy, you mentioned you, you hosted meetings with other CFOs, but tell me how important the collaboration between the finance and the instructional leadership teams have been in, in these times. I mean, how were you able to kind of facilitate those conversations, maybe distilling down complex financial concepts that ultimately would impact instruction one way or another?

[Dr. Michael Macklin]

Well, you know, so our instruction is different. It's really services. Right. So that was one of the key pieces I had to learn coming into SSD is instruction looks different. Right. And so, you know, in regards to working with the CFOs, it's really been more about the fact of how we support them. So we, as part of our idea, part B entitlement funds, we have what we call disproportionality funds. And so there's about 6 million of that that we allocate out to our partner districts. And so really working with them on that alignment of what are they doing within their districts, how are we supporting them with these federal funds, what do the processes look like? Right. So coming in, a lot of what I'm trying to do is if processes were forgotten, how do we reinvigorate and reset a mindset of, okay, this is what we need to do, this is how things work and everything else. So really creating the systems is really what I focused on over the last eight, nine, ten months. For now, the instruction. We have such an amazing executive leadership team here that really know all the pieces of their services, from compliance, due process to the related services for speech, language, otpts, to what's going on with our principals in our own schools and our career tech programs. And so that's been kind of seamless because I just help support them and everything and make sure that we're having conversations about finance and the services that we provide and what that looks like. So it hasn't been as heavy as it's been like a finance instructional leader alignment that you might see in general public education or K12 settings. It's been more of a relationship building between our services that we provide and where does the funding come from or what does that look like? And then having that understanding and that communication. Does that make sense?

[John Brucato]

Yeah, absolutely. You know, I should have asked this earlier when you were kind of outlining and describing what SSD is and how you operate. But are you both on the road a lot, going to partner school districts and visiting with, with other schools? I have to imagine you're. You're driving all over the place.

[Dr. Michael Macklin]

He is. Dr. Macklin is I'm supposed to, but right now it's budget season, so I don't.

[John Brucato]

Yeah, so you're hunkered down.

[Cindy Reilman]

Yeah, I think at the end of the day, you know, I don't. I don't. The work isn't done in office. The work has been done in the space and place where our kids are most important, students are. And so being out in those spaces and places is a key, but it's also about being able to build relationships for the future and so investing in what those pieces really mean. And so at the end of the day, it sometimes is a toil, John, and it's a large task. But at the end of the day, being able to know that you are making a difference is the key. And being able to be in those spaces and places is really important. I love to see our teachers teach. I love to see our paraprofessionals work. I love to see our bus drivers and their space in place. And so those pieces are key.

[Dr. Michael Macklin]

I will say one of the things when I first got here and Dr. Macklin indicated he wanted us to have what he calls coaching days, so that's where we do go out in the partner districts and in our schools and really get in. One of the things he said that has always resonated with me is we cannot make decisions up at our level without knowing what's truly happening down at the school level. Right. And so we really have to be engaged in those spaces and understand what's going on and the challenges that our staff and our students are facing in order to make good decisions up at the. At the level that we're at. So.

[Cindy Reilman]

And I think to that point, John, you know, there are some decisions that have to be made at every level. And that's why you have, you know, levels and chain of command. I mean, that's why we have a legislative branch, executive branch. That's why we have the Supreme Court. But at the end of the day, I firmly believe that you can't make decisions about people unless those people are at the table and a part of the decision making process in some way somehow. Right. That may be a conversation that may be through a survey. Right. And so at the end of the day, to be able to make informed decisions, you have to have voices of those people who are involved.

[John Brucato]

Yeah, well said. All right, so you've done a lot of work building this plan and, you know, you've started implementing it. What short term results have you seen already since getting started with writing the ship?

[Cindy Reilman]

Well, I would say immediately, I Mean, remember, we started this at deficit spending at $75 million a year. Right. And so immediately, because of the proactive measures that have been taken place to reduce the deficit spending, we're already down about $20 million. Right. So deficit spending from 75 to 55. And at our May 13 work study meeting, Cindy's going to be giving some, projecting some more numbers to our board of education for the 26th school year, FY26, which is even going to highlight some of those numbers even more. And so it's about now, John, just staying the course and being able to ensure at the end of the day that we stay the course. And we have also. So I think that to answer your question about short term results, and we're excited about those pieces, I think on the opposite end of that, there's also competing factors that you just don't know. So we have a senior property tax bill or. Right. That's hanging out there. Freeze is hanging out there. And so we don't know the necessary numbers of what those pieces are. So, you know, sometimes you do feel like Apollo 13, right. You're fixing the plane while you're flying it, just because some of these pieces. But we are ecstatic about the short term mergers already and being able to see just that success from there.

[Dr. Michael Macklin]

Yeah, we've really taken a hard look at the positions and the services. We've, you know, in going through this most recent budget season for FY26, all of my budget owners really took to heart the fact of where can we cut costs, where can we reduce some things? What does it look like to be more efficient in our work and how can that turn into savings? And so, you know, the amazing thing here, we call it riding the ship plan, but everybody is on the ship, right. We're not on it alone. It's not just Dr. Macklin and myself. Everybody is working to make the gains and to do the best we can for kids with the finances that we've got. So it's been exciting to be a part of very strategic implementation. I came in with the plan already in place and so I really just have to help carry it out. But yeah, to Dr. Maclean's point, it's very exciting to the gains we've made at least for FY25. And then what to what we're going to see going forward.

[John Brucato]

Yeah, $20 million already is incredibly impressive. When you look out into the next three to five future years, what are some key milestones you're. You're aiming to hit?

[Cindy Reilman]

Yeah, I think I mean, number one is student outcomes. Right. So how do we continue to provide the quality service delivery by analyzing academic and behavior progress. I would say number two is really about, you know, being able to continue to have fun. Fun, balance growth and stabilize those pieces, monitor improvements. I think number three is also staff retention internal because evaluating the retention of specialized programming and experienced staff is key. And then riding the ship was really derived on really budget deficit reduction. And so at the end of the day, how do we ensure that we continue down that path?

[John Brucato]

Great.

[Dr. Michael Macklin]

Yeah, it's unique here because even as I put together FY26 budget, you know, a lot of people talk about enrollment and everything and all. And you know, historically in K12 education, you look at live births, worksheet, et cetera, et cetera, you can't do that at special school districts or you can't do that in special education. You don't know what students you're going to get. You don't know what the needs are, what the services are going to be required or necessary to support them and help them be successful. So it's a whole different mindset here on, on the fluidity and the volatility that you could face. Right. Dr. Macklin talked about the senior property tax freeze that we've got facing us. We also have an open enrollment legislative bill that's going through. We also have unfunded mandates from a previous legislation from the prior year that we're dealing with in Tri C. So it's a very uncertain world outside of us. So working what we can within our walls, within our district is, is what we know we can do. And so that's what we're kind of focusing on at this point.

[John Brucato]

That's great. You know, as you look back and what you've done already, what are some lessons that you've learned throughout this process that you know, could benefit other school business officials or superintendents that may be facing similarly situated financial issues?

[Cindy Reilman]

I think, you know, of course, number one would be, you know, you gotta be transparent and you gotta have collaboration. I mean, you're not in this by yourself and you can't do it alone. So transparency and collaboration is the key. I think also engage early and often. Right. So engage stakeholders early, engage them often for those pieces. And then I think the last piece is if it is to be, it is up to me. You got to get started. You got to get started. Every day you don't get started is a day you're behind. And then every day that you don't get started, you think about the impact that it has on a student and what those pieces really mean. So I think those three pieces, John, is what resonates for us.

[John Brucato]

Great. So as we wind down here, there's one key message you want our listeners to take away from this conversation. What would that be?

[Cindy Reilman]

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. Focus on the needs of the organization and ensuring long staying stability over quick fixes.

[Dr. Michael Macklin]

Yep.

[John Brucato]

That's great. Well said. So if someone's inspired about what you've been doing in SSD and maybe wants to learn a little bit more about writing the ship plan, where can they go to find maybe some more detailed information to see how you're kind of dissecting these financial issues year over year?

[Cindy Reilman]

Yeah. So we have. We have our dedicated webpage to those pieces to. To the riding the ship pieces. So they can find that on our district here. They also can reach out. Reach out to myself or reach out to Cindy. And to be able to provide any more information needed about these pieces, I would tell you, and again, I gave you the stat earlier, just about the 10 to 20%, really, across the nation, I would say that all districts, depending on where they are in spaces and places, are going to have to delve into some kind of financial plan just because of what are the competing and declining funding and what those pieces really mean. So I would say, please don't hesitate to reach out. I believe the smartest one in the room is the room. And so the collective mind power and collective thought is most powerful.

[Dr. Michael Macklin]

Yeah. You know, Dr. Macklin, I were talking a few days ago. You can't really turn around and not see or hear about a district that's having challenges. Right. Whether it's financial, staffing, challenges, whatever it is. And so just being able to reach out and help one another out is huge because we're all in this together. And for the most part, we're all going through similar challenges.

[John Brucato]

Yeah, absolutely. Just as a quick aside before we wrap up here, I don't know if you noticed, Cindy, but I specifically wore my Buffalo Bill.

[Dr. Michael Macklin]

Yes, I did.

[John Brucato]

I knew we were talking today. I did.

[Dr. Michael Macklin]

In fact, before you took your headphones off earlier, I'm like, he's wearing his bill shirt.

[John Brucato]

Yeah, Yeah. I knew we were recording today, so I was rooting through my drawers because I, you know, shamefully put them all away for the season.

[Dr. Michael Macklin]

But the NFL draft's coming up, so it's okay.

[John Brucato]

Well, at any rate, Dr. Macklin, Cindy, thank you both so much for sitting down with me this afternoon. I'm excited to get your story out, and best of luck on writing the ship moving forward.

[Cindy Reilman]

John, I just want to thank you because these are the kind of stories that need to be told. Parents need to know that there are great things going on in public school education, and these are the kind of pieces that need to get out. It doesn't mean that there aren't slips and that you don't have long days and hard days, but these are the kind of stories that need to be told about the possibilities and what really could happen. So I appreciate you, John.

[Dr. Michael Macklin]

Yes, thanks, John, for allowing us to be on your podcast.

[John Brucato]

Thank you for tuning in to School Business Insider. Make sure to check back each week for your favorite topics on School business.