Special School District of St. Louis County continues to address growing financial challenges as District leaders prepare the proposed budget for the 2026-27 school year. During the Board of Education work study session on May 12, SSD shared information about the District’s finances, including lower revenue projections, rising costs, and ongoing efforts through the District’s Righting the Ship plan.

SSD is facing a difficult combination of slowing revenue growth and increasing expenses. For the 2026-27 fiscal year, the District projects approximately $8.8 million less in revenue compared to the current year, while costs for staffing, student services, transportation, healthcare, and daily operations continue to rise. Several factors are contributing to the District’s financial challenges, including lower-than-expected state funding, slower growth in local revenue, and rising operational costs.

Based on current projections, SSD anticipates a budget deficit of approximately $75 million to $83 million for the 2026-27 school year. This would mark the fourth consecutive year that expenses have exceeded revenues. The District cannot continue deficit spending in the long term without significant financial impacts.

As part of ongoing financial planning, SSD is closely monitoring its fund balance and may need to consider short-term borrowing later this year to help manage cash flow before local tax revenue is received in December.

At the same time, the District continues working to identify cost savings, improve efficiencies, and strengthen long-term financial stability while maintaining support for students and staff. SSD’s Budgetary Task Force has reviewed several areas across the District, including staffing, transportation, facilities, technology, purchasing practices, and special education service delivery. Efforts to date have included reducing operational spending, reviewing transportation and technology costs, and eliminating vacant positions where possible. SSD is also exploring additional revenue opportunities, including the possibility of recovering lost tax revenue and evaluating potential future revenue initiatives.

District leaders remain committed to making financially responsible decisions while ensuring students continue to receive the services and support they need to learn, grow, and succeed.

The SSD Board of Education and Governing Council will review the proposed budget before final approval later this spring.

For additional information, please visit the Righting the Ship webpage on the District website.