Packet

September 16, 2026 CDEB Meeting Agenda AGENDA CDEB SEPTEMBER 16, 2026.PDF September 16, 2026 CDEB Meeting Packet PACKET CDEB SEPTEMBER 16, 2026.PDF 1. Documents: 2. Documents: Walworth County Children with Disabilities Education Board MEETING NOTICE Wednesday, September 16, 2026 4:30 PM County Board Room 114 Walworth County Government Center 100 W. Walworth St., Elkhorn, Wisconsin Brian Holt, Chair Kathy Ingersoll, Secretary Supervisor Joanne Laufenberg Supervisor Ken Monroe Supervisor Joe Schaefer (Posted in compliance with Sec. 19.84 Wis. Stats.) A quorum of the Finance Committee and Lakeland Health Care Center Board of Trustees will be in attendance. It is possible that a quorum of the county board or any of its other committees could be in attendance at this meeting. Agenda enclosures are available upon request from the County Administrator’s Office or on the County’s web page (www.co.walworth.wi.us). A G E N D A Note: all agenda items are subject to action. 1. Call to order 2. Roll call of committee members 3. Agenda withdrawals, if any 4. Agenda approval 5. Approval of Minutes a) July 22, 2026, Children with Disabilities Education Board Meeting (encl. pp. 1-4) 6. Public Comment Period NOTICE: THIS MEETING IS PLANNED TO PROVIDE FOR REMOTE OR OFF -SITE ATTENDANCE BY COMMITTEE MEMBERS. THE PUBLIC CAN WATCH THE MEETING STREAMING LIVE: https://walworthcowi.portal.civicclerk.com/event/2603/media Individuals wanting to provide a Public Comment can do so remotely by telephone but must contact the County Administrator’s Office at 262-741-4357 on the day of the meeting and at least 15 minutes prior to the start of the meeting to obtain instructions. AGENDA – Walworth County Children with Disabilities Education Board Wednesday, September 16, 2026 at 4:30 PM Page 2 of 2 7. New Business a) Presentation of the Proposed 2027 Lakeland School Budget (encl. pp. 5-35) b) September Notification of Children with Disabilities Education Board Projected Revenue Shortfall (encl. pp. 36-37) c) Adjust for a portion of the revenue shortfalls related to both general aid and tuition payments (encl. pp. 38-39) d) Cooperative Educational Services Agency 2 for contracted vision services (encl. p. 40) 8. Reports and Correspondence (encl. pp. 41-42) a) CDEB Chair b) CDEB Director 1) July & August Donations 2) Beginning of School Year Review 9. Upcoming Dates a) Thursday, October 22, 2026 – Family Engagement Event – details to be announced b) Friday, October 23, 2026 – No School, Staff Inservice c) Friday, November 6, 2026 – Bowling Event Fundraiser – details to be announced d) Tuesday, November 24, 2026 – Early Dismissal, 1:00 p.m. e) Wednesday – Friday, November 25-27, 2026 – No School, Thanksgiving Break 10. Set/confirm next meeting date and time: Wednesday, October 21, 2026 at 4:30 p.m. 11. Adjournment Submitted by: Brian Holt, Chairperson of Children with Disabilities Education Board Matthew Huettl, Director of WCCDEB Posted: September 10, 2026 DRAFT Walworth County Board of Supervisors Children with Disabilities Education Board Meeting Minutes Wednesday, July 22, 2026 Walworth County Government Center, County Board Room 114 100 West Walworth Street, Elkhorn, Wisconsin Chair Brian Holt called the meeting to order at 4:30 p.m. Roll call was conducted, and the following members were present: Chair Brian Holt; Secretary Kathy Ingersoll; Supervisors Kenneth Monroe, Joanne Laufenberg, and Joseph H. Schaefer (Remote). A quorum was declared. Others in Attendance County Staff: Walworth County Administrator Mark W. Luberda, Director-Special Education Matthew Huettl; Principal/Director of Curriculum Holly Smith, and Assistant Director Special Education Sarah Singleton On motion by Secretary Ingersoll, second by Supervisor Laufenberg, the agenda was approved with no withdrawals. On motion by Supervisor Monroe, second by Secretary Ingersoll, the June 17, 2026 Children with Disabilities Education Board meeting minutes were approved. Public Comment – There was none. Unfinished Business 7a. Lakeland School Policies, Second Review, 3213, 5500, 7530.02, 7540.03. 7540.08, 7544, 8120, 8141, 8462 1) po3213, Student Supervision and Welfare 2) po5500, Student Code of Classroom Conduct 3) po7530.02, Staff and School Officials Use of Personal Communication Devices 4) po7540.03, Student Technology Acceptable Use and Safety 5) po7540.08, Artificial Intelligence 6) po7544, Use of Social-Media 7) po8120, Volunteers 8) po8141, Required Reporting of Staff Conduct 9) po8462, Reporting of Child Abuse and Neglect, and Sexual Misconduct Director-Special Education Matthew Huettl referenced and discussed his Memorandum and policies, included on Pages 5-33 of the packet, to be considered for a second review and approval by the CDEB Committee. Discussion ensued. Supervisor Laufenberg offered a motion, second by Supervisor Monroe to accept Lakeland School Policies, Second Review, 3213. 5500, 7530.02, 7540.03, 7540.08, 7544, 8120, 8141, and 8462. Motion carried 5-0. New Business 8a. 2027 Budget Ideas and Considerations Huettl explained Item 8a., 2027 Budget Planning and Considerations, is on the agenda to give the CDEB Committee meeting an opportunity to ask questions and provide input into the 2027 budget. Huettl responded to Secretary Ingersoll’s inquiry if there is more that could be done 1 Walworth County Board of Supervisors July 22, 2026 Children with Disabilities Education Board Meeting Minutes Page 2 of 4 for fundraising. Huettl stated he hopes to bring more fundraising ideas to the CDEB Committee to consider before the end of the year to assist in the shortfall. 8b. Notification of Children with Disabilities Education Board Projected Revenue Shortfall Huettl referenced and provided details of his Memorandum, included on Pages 34-36 of the packet, including explanation and implications of the CDEB State Aid Formula; High-Cost Special Aid-Formula; and Medicaid Cost Settlement. He discussed the financial implications of expenditures and revenues decreasing. He concluded by discussing his recommendations regarding this shortfall going forward. 8c. Adjust for decreased State General Aid and Increased Investment Income. Huettl referred to the Budget Adjustment, included on Page 37 of the packet, indicating the request is to move $30,000 from interest revenue over to operating to account for some of shortfall in our aid. Secretary Ingersoll offered a motion, second by Supervisor Laufenberg, to approve Item 8c., the Budget Adjustment needed to adjust for decreased State General Aid and Increased Investment Income. Motion carried 5-0. 8d. Approval of the Staff Handbook Huettl referred to and discussed the changes in the 2026-2027 Staff Handbook, included on Pages 38-83 of the packet. He summarized the changes to the Handbook, which were identified on Pages 38-41 of the packet. Discussion ensued. Supervisor Monroe offered a motion, second by Supervisor Laufenberg, to approve Item 8d., the 2026-2027 Staff Handbook. Motion carried 5-0 8e. Approval of the Student Handbook Huettl and Principal/Director-Curriculum Holly Smith referred to and discussed the changes in the 2026-2027 Student Handbook, included on Pages 84-128 of the packet. Huettl summarized the changes to the Handbook, which were identified on Pages 84-86 of the packet. Discussion ensued. Supervisor Laufenberg offered a motion, second by Secretary Ingersoll, to approve Item 8e., the 2026-2027 Student Handbook. Motion carried 5-0. 8f. Approval of the July Space Availability Study: Factors Considered and Results Huettl referenced and discussed his Memorandum, included on Pages 129-134 of the packet. He explained the study outlines the tuition based students accepted. Assistant Director Special Education Sarah Singleton gave the presentation, Tuition/Space Availability Update, included on Pages 135-144 of the packet. The chart on Page 134 of the packet outlines the number of seats available for tuition based students in each academic department of Lakeland School. Discussion ensued. Supervisor Laufenberg offered a motion, second by Secretary Ingersoll, to open tuition for the first trimester. Motion carried 5-0. 2 Walworth County Board of Supervisors July 22, 2026 Children with Disabilities Education Board Meeting Minutes Page 3 of 4 8g. Review of Rostering Considerations for the 2026-2027 School Year Principal/Director of Curriculum Holly Smith referenced and gave the presentation regarding the Review of Rostering Considerations for the 2026-207 School Year, included on Pages 145-154 of the packet. She explained the Balanced Staffing Model, included on the chart on Page 153 of the packet. This chart discusses the reallocation of students allowing for tuition and enrollment growth. Discussion ensued. 8h. Approval, Ord. No. ****-08/26 Amending Section 30-286 of the Walworth County Code Ordinances Relating to Lakeland School Lunch Fees Huettl referenced and discussed the Memorandum and Ordinance Amending Section 30-286 of the Walworth County Code Ordinances Relating to Lakeland School Lunch Fees, included on Pages 155-158 of the packet. Secretary Ingersoll offered a motion, second by Supervisor Monroe, to approve the ordinance Amending Section 30-286 of the Walworth County Code Ordinances Relating to Lakeland School Lunch Fees. Motion carried 5-0. 8i. Resignation 1) Ashlee Harding 2) Amanda Merlo Huettl referenced the Memorandum, included on Pages 159-160 of the packet. He thanked both Ashlee and Amanda for all they have done at Lakeland school. Secretary Ingersoll offered a motion, second by Supervisor Monroe, to approve the resignation of Ashlee Harding and Amanda Merlo. Motion carried 5-0. 8j. New Hire 1) Amanda Harder Huettl discussed the hiring of the new Educational Interpreter Amanda Harder to the Lakeland School staff. Supervisor Laufenberg offered a motion, second by Supervisor Schaefer, to approve the new hire of Amanda Harder. Motion carried 5-0. Reports and Correspondence 9a. CDEB Chair – There was none. 9b. CDEB Director 1) June Donations 2) Partner District Update 3) School Principal Monthly Update Huettl referenced and summarized the CDEB Director Report, included on Pages 161-162 of the packet, covering June Donations, Partner District Update, and School Principal Monthly Update. 10. Upcoming Dates a) July 27 – August 12, 2026 – Registration b) August 25 – September 1, 2026 – Staff Inservice c) Thursday, August 27, 2026 – Family Engagement / Meet the Staff Night 3 Walworth County Board of Supervisors July 22, 2026 Children with Disabilities Education Board Meeting Minutes Page 4 of 4 d) Tuesday, September 8, 2026 – First Day of School e) Friday, October 23, 2026 – No School, Staff Inservice Huettl went over the upcoming dates through October 23, 2026. Confirmation of next meeting date and time: The next meeting was confirmed for Wednesday, September 16, 2026 at 4:30 p.m. Adjournment On motion and second by Supervisor Monroe and Supervisor Laufenberg, Chair Holt adjourned the meeting at 5:30 p.m. _________________________________________________________________________________ Submitted by Kathleen Aukland, Administrative Assistant. Meeting minutes are not considered final until approved by the Children with Disabilities Education Board at the next regularly scheduled meeting. 4 Lakeland School Walworth County CDEB 2027 Proposed Budget Matthew P. Huettl, Director of Special Education September 16, 2026 0 5 Table of Contents Introduction: …………………………………………………………………………….. 2 Fiscal Challenges: ………………………………………………………………………. 2 Budget Development Process: ………………………………………………………….. 3 Pilot Tuition Student Program: …………………………………………………………. 7 Ongoing Future Challenges: ……………………………………………………………. 7 Children’s Long-Term Support: …………………………………………………………. 8 Lakeland School Staff and Student Demographics: …………………………………….. 9 Revenues: ……………………………………………………………………………… 10 ● Tuition Students: ………………………………………………………………. 10 ● Categorical Aid: ………………………………………………………………. .10 ● High Cost Special Education Aid: …………………………………………….. 12 ● General CDEB Aid: ………………………………………………………….... 14 ● Medicaid: ……………………………………………………………………… 15 ● IDEA: ………………………………………………………………………….. 16 Expenses: ……………………………………………………………………………… 17 2027 Proposed Tax Levy: ……………………………………………………………... 19 Capitol Improvement Projects (CIP): …………………………………………………. 20 ● Short Range CIPs with Project Notes: ………………………………………… 20 ● Long Range CIPs: ……………………………………………………………... 23 Division Summaries: …………………………………………………………………... 24 1 6 Lakeland School 2027 Budget Considerations Introduction The development of the 2027 Lakeland School CDEB budget comes at a time of continued financial uncertainty at both the federal and state levels. Throughout 2026, Wisconsin policymakers explored significant increases to K-12 funding, including a bipartisan proposal announced in May 2026 that would have invested more than $600 million statewide and substantially raised special education reimbursement rates and would have significantly closed the gap in our revenue shortfall. Although the measure passed the Assembly, it was ultimately rejected by the Senate, leaving districts and Lakeland School without the anticipated financial relief. Consequently, the Lakeland School 2027 budget was built on conservative budgeting and historical revenue outcomes rather than the enhanced funding many had hoped would be approved. Albeit the state of Wisconsin still has a budget surplus that we are hopeful will address the special education shortfall a majority of Wisconsin if not all public schools currently face. Fiscal Challenges In 2026, Lakeland School received updated aid amounts from the Wisconsin Department of Public Instruction, with General CDEB Aid and High Cost Special Education Aid falling below budgeted levels. Categorical Aid performed slightly ahead of projections to date, but total revenues remain lower than anticipated, and Medicaid reimbursement also declined from both prior‑year amounts and budgeted expectations. These statewide financial pressures continue to intensify across Wisconsin school districts, including Lakeland School. According to the Wisconsin School Administrators Alliance (SAA, 2026) approximately 40 percent of districts operated at a deficit last school year, and many have increasingly relied on referendum questions to maintain operations and fund capital improvement projects, 75 in Spring of 2026, 94 in Spring 2025, 103 in Spring 2024, and 139 in Fall 2024 according to the Wisconsin Department of Public Instruction (WIDPI) and the Wisconsin Policy Forum. Looking ahead, about 60 percent of districts are projected to receive reduced state aid for the 2026–2027 school year (WIDPI, 2026). Although Lakeland School has historically been insulated from these challenges, rising costs combined with flat state appropriations are now creating financial strain for Lakeland School. I provide this information because Lakeland School has been sheltered from the financial strain most Wisconsin school districts have faced for the past decade or more. Unfortunately it is now here at our doorstep at a time when the cost of doing business to maintain basic operation is outpacing traditional revenues provided by the state. These fiscal challenges are compounded by longstanding limitations in state funding formulas. General CDEB Aid has remained unchanged for more than a decade and is redistributed annually based on spending across counties through a complex formula which demonstrates Lakeland Schools share of CDEB aid falls significantly short when compared to the Brown and Calumet 2 7 counties. High‑Cost Special Education Aid remains far below intended reimbursement levels despite higher statewide appropriations, driven by reporting requirements, compliance related staffing considerations, and statewide increases in eligible expenses for school districts. Medicaid reimbursement this past school year also varied due to shifting federal match rates and annual changes in cost‑settlement factors, reducing the reliability of historical averages. Within this context, the goal for the 2027 budget was to minimize the fiscal impact on Walworth County constituents, albeit they will see the largest increase in the tax levy than they have seen in previous years, if this proposed budget is approved by the Walworth County Board of Supervisors. This budget cycle has been particularly challenging as we worked to balance the needs of Lakeland School’s students with the responsibility to reduce the tax burden on county residents where possible. At the same time, we must remain mindful that lowering expenses will reduce future revenue, since state aid formulas rely heavily on prior year expenditures. It is important to remember that in some cases we are seeing increased revenue but since our expenditures keep decreasing we receive less than anticipated due this and proration rates which are based on expenditures from across the state. This makes expense cutting a delicate process: reductions help manage the levy but also diminish the very funding needed to sustain programming in subsequent years. Budget Development Process The 2027 budget development process began in mid‑spring with a detailed, collaborative review of all expenditures. The Director and Lakeland School’s two assistant directors examined each section of the budget detail report to distinguish essential items from nonessential ones, ensuring transparency, shared input, and clear alignment between operational priorities and fiscal planning. During this same period, the Director of Special Education and the Senior Accountant also reviewed revenue trends, staffing, salaries, benefits, long‑term revenue models, and analyzed expenditure patterns to identify viable options for the upcoming budget cycle. As the proposed 2027 budget took shape, these combined efforts reflected the school’s commitment to maintaining high‑quality educational services to the greatest extent possible while navigating increasingly unpredictable funding conditions and anticipated revenue shortfalls. We were able to determine that rising costs, changing reimbursement formulas, and delayed state allocation timelines indicate that the 2027 budget cycle will likely require greater reliance on the tax levy than in previous years. Alongside budget development, the staffing needs review process played a central role in planning for the upcoming year. A structured and recurring analysis of student needs and staffing levels is essential in our environment because the learners we serve require highly individualized, intensive, and unique support. Unlike typical school districts that can merge classrooms, shift students between teachers, or redistribute learners to balance enrollment, our setting does not have that flexibility. It is worth noting that I don’t claim the process that typical schools go through is easy but it looks significantly different for us at Lakeland School. It is 3 8 difficult to adjust classroom compositions mid‑year without disrupting the safety, care, and instructional consistency our students and educators rely on. Even one additional student with significant needs can change the entire staffing dynamic for that classroom, department, and the stand-by-team. Because of this, the process of determining classroom staffing is delicate and time‑consuming, requiring thoughtful collaboration and continuous evaluation. Building administrators devote extensive time throughout the year to reviewing patterns, discussing emerging needs, and identifying pressures within classrooms. At least three structured analyses are conducted annually to keep staffing decisions closely aligned with real‑time student needs. The full methodology and outcomes of this ongoing work were shared during the July CDEB meeting, reinforcing transparency and shared understanding. The staffing review draws on a comprehensive analysis of individualized student support indicators. These include therapy service requirements, regulation and behavior support needs, direct instructional assistance, mobility and self‑care considerations, attendant‑care needs, and the frequency of moments when staff must intervene to stabilize dysregulation. However, quantitative data alone is not enough. Building administrators rely on continuous feedback from classroom staff, those who work most directly with students and actively seek their perspectives on changing needs, where additional assistance may be required, and how classroom dynamics fluctuate throughout the year. Personal observation is equally critical: administrators spend substantial time observing how students engage with instruction, how transitions unfold, how support is coordinated, and how regulation and care needs manifest throughout the day. These firsthand insights contextualize the long‑term data that has been collected. After spending a significant amount of time compiling, reviewing, and discussing all available data, Lakeland School administrators and the Walworth County Administrator held at least three additional meetings to walk through the process together, validate each step, confirm a unified understanding of the methodology, and ensure the final conclusions reflected a complete, careful, and diligent evaluation. This added layer of collaborative verification underscores how seriously staffing decisions are approached and how essential accuracy is in our educational and fiscal environment. When all of these inputs - data, staff feedback, personal observation, and collaborative review are examined collectively across classrooms and departments, the full amount of student needs becomes clear. Traditional staffing formulas simply do not apply. The combination of complex medical, behavioral, sensory, instructional needs and supports requires classroom sizes to be intentionally and carefully planned. A single student with elevated support requirements can shift staffing patterns substantially, influencing how staff must be allocated, how duties are distributed, and how supports are scaffolded moment‑to‑moment. Because some students intermittently require one‑to‑one or two‑to‑one support, classrooms must be structured through a holistic lens that accounts for the combination of medical, behavioral, sensory, mobility, self-care and instructional needs present at any given time. This approach ensures student safety, 4 9 meaningful engagement, and preserves instructional access for all learners in order to make adequate educational progress towards their IEP goals. Behavioral and sensory needs play a significant role in shaping classroom size. While weighting systems are traditionally used to determine space availability for tuition students, the building principal applies these same core elements through a classroom centered perspective rather than relying strictly on formulaic calculations. She uses her professional knowledge of students’ behavioral, sensory, and regulatory needs to determine how these supports look in day-to-day practice, recognizing that they manifest differently from classroom to classroom when considering daily operations both at the classroom and building level. This approach ensures classroom capacity reflects the actual workload and safety considerations generated by these supports, rather than relying solely on numbers or headcount. Personal care and other needs such as toileting, diapering, garment changes, feeding, hygiene, sensory support, dysregulation, class transitions and mobility support further influence functional capacity. Students requiring frequent care necessitate more staff involvement, reducing the number of learners who can be safely served in the same environment. Staffing requirements across teachers, paraprofessionals, nursing, and related service providers such as speech‑language pathologists, occupational, and physical therapists are closely tied to this complexity. Students with intensive medical or behavioral needs dramatically increase staffing demands for all of our educators. Attendant care billing reflects the level of daily support needed for grooming, hygiene, mobility, and medication management. When a student requires high levels of attendant care, the overall classroom capacity naturally decreases, as staff time must be allocated to fulfilling these essential care responsibilities. Physical space and accessibility further influence classroom limits. Students who rely on wheelchairs, standers, gait trainers, hoyer lifts, and other specialized equipment require safe, unobstructed environments. Classrooms must accommodate these devices while remaining navigable for students and staff. As medical and mobility needs become more complex, spatial constraints become more pronounced, requiring reduced class sizes to prevent overcrowding and preserve safe access to equipment and emergency procedures. Instructional approaches also shape classroom size. Whether instruction emphasizes life skills, communication through AAC, sensory‑based learning, or functional academics, these models require extensive individualized practice. Students often need sensory breaks, medical procedures, movement opportunities, or regulation strategies throughout the day. Educators must manage these transitions without compromising learning for others. IEP driven services such as specialized therapies, direct communication intervention and support, or specialized physical support protocols demand significant one‑to‑one or small group time, requiring classroom sizes that allow consistent, flexible and effective delivery of services. Concurrently some students also need direct support from the stand-by-team to safely access instruction, further contributing to how classroom sizes are determined. 5 10 At the programmatic level, the Lakeland School monitors department level capacity across grade levels, to remain at a weighted capacity that allows its students to make progress towards their IEP goals in their least restrictive environment. This preserves flexibility for future county placed students. In certain departments, such as early childhood, naturally require lower thresholds because young learners often present with more intensive needs. Related services use a severity units model to calculate caseload capacity, converting required service minutes into standardized workload units so therapists’ schedules reflect actual service intensity. This ensures therapists can meet IEP requirements and indirectly shapes classroom size, as departments must maintain capacity to deliver all related services. Subsequently, inclusion activities, 18 and Beyond, community‑based instruction, and transitions throughout the building or into the community influence classroom staffing needs. Students often require staff support during this time, temporarily reducing staffing levels in their homeroom. Class sizes must therefore remain a level to ensure adequate coverage even when staff are temporarily reassigned to support specialized programming needs. By integrating student needs, behavioral and sensory considerations, attendant care requirements, staff input, personal observation, physical space limitations, instructional models, related service capacity, and programmatic thresholds, the Lakeland School is able to apply a comprehensive, evidence‑based framework to determine classroom size. This approach ensures that classrooms remain safe, accessible, instructionally responsive, and flexible enough to adapt to enrollment changes while meeting the significant and diverse needs of students with severe, profound, and medically fragile disabilities. This model supports equitable staff distribution and helps maintain manageable student‑to‑staff ratios, enabling staff to respond to student dysregulation, provide regulation support, deliver personal care, and continue instruction without compromising safety or learning opportunities for others. Lastly, Lakeland School has been engaged in a process of evaluating staffing levels for effective service delivery with budgetary constraints in mind when natural moments occur. Meaning when we have resignations. For example, we are down three teacher positions since 2025. Secondly, this school year we have a special education teacher position which we haven’t been able to fill that we are trying to fill with substitutes. Along with other positions we are filling with long-term substitutes and a CESA 2 vision teacher. In this budget proposal you will also see that we will not be filling our assistant principal position, reducing school psych time by almost half, temporary reduction in therapist hours, and we previously reduced the hours for an administrative assistant position. With all of this in mind we are operating at significantly decreased capacity in which we are functional but far from optimal. Meaning Lakeland School is currently operating at the minimum and any more reductions will significantly affect programming and safety for both students and staff. With all of that in mind the likelihood of being able to reduce staffing for the 2028 budget is not an option. 6 11 Pilot Tuition Student Program Lakeland School’s 2025-2026 tuition‑billing pilot program was launched to modernize billing practices and strengthen financial transparency after a partner district requested accurate tuition estimates due to budget challenges. Working closely with the Walworth County Finance Department, the Walworth County Administrator and Lakeland School staff we were able to review revenue patterns, staffing capacity, and tuition models to determine whether additional tuition students could be enrolled. Although prior space and service‑capacity studies showed the Lakeland School could not accept more students due to high Speech and Language caseloads, the team addressed this barrier by converting an open teacher position into a Speech and Language Pathologist role. This shift allowed Lakeland School to set a goal of enrolling three new tuition students for 2025-2026. Also with this tuition expansion, we completed a series of updates to our billing framework. Tuition calculations were reviewed and refined to capture all educational costs, previously omitted expenses were added, billing accuracy was improved by basing charges on each student’s full‑time equivalency, and staffing allocations were grouped by department rather than individual student assignment. The updated model safeguards Walworth County taxpayers by ensuring districts outside the county pay the full cost of educating their students. A phased three‑year implementation will ease the transition for districts facing significant tuition rate adjustments, and continued communication ensures partner districts can plan their budgets responsibly. As a result of the pilot, Lakeland School enrolled new tuition students, four of whom will continue, and will begin the 2026–2027 school year with ten tuition students in total. Interest from districts such as Burlington, Janesville, and Hartford indicates renewed regional engagement, and outreach will continue through notifications and personalized follow‑up meetings. Most importantly, the pilot reinforced that classroom size and tuition‑program growth must be grounded in a holistic understanding of student needs. Ongoing Future Challenges As Lakeland School continues its work toward long‑term financial stability, it is essential to acknowledge the emerging pressures that will shape the budget in the years ahead. Despite careful planning, collaborative review, and responsible fiscal management, Lakeland faces a combination of rising operating costs, shifting reimbursement formulas, and unpredictable state allocations that mirror broader statewide trends in special education funding. These realities mean that even when expenditures are controlled, revenues do not always rise in tandem which is a challenge highlighted repeatedly in recent revenue‑shortfall analyses. Understanding the factors that contribute to future budget strain is necessary for planning responsibly, maintaining transparency, and ensuring Lakeland can continue delivering services without compromising programs or disproportionately relying on increased levy support. The most significant challenges expected to influence future budgets are outlined below. Those impacts are listed below: 7 12 Indirect Costs: ● The allocation of indirect costs for central service departments to grantee departments continues to increase annually, straining the budget over the past two years without additional revenue to cover these expenses. Staff Compensation: ● Cost of living and performance-based salary adjustments have added expenses to the budget without corresponding revenue to support this expense. These two areas will continue to push the budget into a deficit without additional revenue. Low Revenue Limit Ceiling: ● While this doesn’t directly impact the Lakeland School budget currently, it does impact our partner district revenue. Throughout 2027, Lakeland School will continue to study the Low Revenue Limit Ceiling and how it currently affects partner districts but also how an increase with this will impact partner districts and if could have a direct impact on Lakeland School. Engagement with Partner School Districts: ● Engagement with our partner districts is not necessarily a challenge since it is a wonderful opportunity! The challenge lies in being able to respond and implement areas of growth in which they have identified which will challenge the status quo at Lakeland School. We have begun engaging with them in our first meeting to review current practices to assist new directors and we will be meeting with them near the end of September to provide an overview of the Lakeland School Budget, the identified needs from districts, and determine which areas of growth to work on first. Children’s Long-Term Support Children’s Long-Term Support (CLTS) provides Medicaid-funded services that help children with significant developmental, physical, or emotional disabilities remain supported safely in their homes and communities. Eligibility is based on long‑term disability, functional needs, Medicaid requirements, Wisconsin residency, and living in a safe home or community setting. CLTS services build daily living, social, motor, emotional‑regulation, and community‑participation skills. A CLTS summer camp extends these supports by offering structured, inclusive activities that strengthen social skills, recreation, creativity, motor development, emotional regulation, and meaningful engagement in community outings. Lakeland School is proposing a CLTS-funded summer camp to meet growing countywide need as CLTS enrollment increases across Walworth County, while offering families safe, reliable programming and respite during the summer months. The camp is budgeted at net zero with no 8 13 impact on the tax levy, as all costs are expected to be fully reimbursed through CLTS. The program will serve 15 students and be staffed by 12 team members, including a camp lead, co‑lead, four instructors, four assistants, a health room aide, and a lifeguard. The remainder of the school year will focus on detailed planning, coordination, and preparing operational and staffing components for successful implementation. The hope is to launch the camp in summer 2027; however, if unforeseen circumstances arise and all necessary pieces cannot be fully put together in time, the program may need to begin in summer 2028 instead. Lakeland School Staff and Student Demographics Staff Demographics: ● Total Number of Staff: 98 (excluding contracted personnel) This reflects the total number of staff currently scheduled to return or begin employment in the fall. ● Certified Staff (Teachers and Educational Specialists): 46 ● Hourly Staff (Office Staff, Teacher Assistants, Administrative Assistants, and Food Service): 47 This includes the two Aides and the Interpreter who have accepted positions for the fall. ● Contracted Staff: 4 Includes School Psychologist, Orientation & Mobility Specialist, Audiologist, and Teacher of the Visually Impaired. ● Salaried Exempt Staff: 5 Student Demographics: ( ) Denotes last year at this time Total Student Enrollment: 124 (121) ● Tuition Waiver Students: 10 (7) Tuition students are included in department enrollment ● EC - 5th Enrollment: 39 (35) ● 6-8 Enrollment: 24 (19) ● 9-12 Enrollment: 35 (41) ● 18-21 Year Old Enrollment: 26 (26) ● Summer School Enrollment (July 2026): 41 (37) 9 14 Revenues Tuition Students: The tuition revenue budget has been updated to include 10 students who are currently known to be attending and three additional students who may enroll during the year. The three potential students are budgeted to begin in January at an estimated $30,000 each, for a total of $90,000. Tuition for the 10 known students is estimated at approximately $777,000. Because these calculations are based on preliminary staffing assignments, prior-year payroll information, and estimated student service minutes, the revenue budget has been conservatively rounded down to $777,000 from $982,000. The estimates will be updated as more information about enrollment, staffing, and the upcoming school-year structure becomes available. Budgeted Amount: $777,000 Categorical Aid: Categorical aid, calculated based on wages and benefits, is designated to finance or reimburse specific programs. Lakeland School experienced a decline in categorical aid for a few years due to policy changes under the Walker administration. However, the allocation increased under Evers' administration and will increase once the latest biennial budget goes into effect. In the current biennial budget approved by the Wisconsin Joint Finance Committee and signed by Governor Evers it indicates the following budget allocations: 2024-2025 - $574,777,700, Proration rate 30.64% 2025-2026 - $782,408,800, Proration rate 38.39% 2026-2027 - $871,826,900, Proration rate We receive a total of six payments of Special Education Categorical Aid. The first five payments are at a lower rate and they are received November - March. With the final true up payment coming in June. Two of the payments are based on the previous school year and four payments are based on the current school year. Lakeland School updated its Categorical Aid costs for submission from $7.8 million to $8 million after reviewing current‑year tuition payment patterns and making necessary adjustments. Total costs submitted were recalculated by reviewing last year’s payroll figures and subtracting costs associated with districts that used federal funds to pay tuition. Most school districts paid with local dollars this year which reduced revenue from $200,000 to $60,000. The projection for 2027 incorporates statewide guidance, including WASBO’s recommendation that reimbursement rates may fall within the 39-40% range. Lakeland School also assumed statewide special education costs would increase at the same rate as last year (8.64 percent) and that the State will provide sufficient funding in 2027–28 to obtain a 41% reimbursement rate. Based on these 10 15 assumptions and the estimated payroll for both the 26-27 and 27-28 reimbursement cycles, Lakeland School is projecting Categorical Aid revenue resulting in a total projected Categorical Aid amount of $3,277,198 for the 2027 budget year. Budgeted Amount: $3,277,198 11 16 High Cost Special Education Aid: Under the program, school districts, independent charter schools, cooperative educational service agencies, and county with children with disabilities education boards are eligible for costs above $30,000 for an individual pupil in the previous school year, if costs were not reimbursed by the state special education categorical aid, the federal Individual with Disabilities Education Act (IDEA), or the federal Medicaid program. In the current biennial budget approved by the Wisconsin Joint Finance Committee and signed by Governor Evers it indicates the following budget allocations: 2024-2025 Base Year - $14,480,000, Proration rate 19.2% 2025-2026 - $29,086,700, Proration rate 31.0% 2026-2027 - $54,450,300, Proration rate 46.7% Statewide special education costs are projected to increase by approximately 24%, similar to last year, bringing total statewide aidable costs to an estimated $116.7 million. The state increased High Cost Special Education Aid funding to $54.45 million, which raises the estimated prorated reimbursement rate to approximately 46.7%. At this time, 25 students are expected to qualify for High Cost Special Education Aid, compared with 29 students last year. Of the 25 students, two are only slightly above the eligibility threshold and are expected to generate approximately $1,000 each. We anticipate submitting approximately $850,000 in eligible costs. Although more funding may be deducted from the claim because the categorical aid reimbursement rate increased, the High Cost Special Education Aid reimbursement rate is also expected to increase. Because actual student attendance is factored into the High Cost Special Education Aid calculation, it will be important to closely monitor the attendance of students who are expected to qualify and continue working with students and families to support consistent attendance whenever possible. 12 17 Budgeted amount $390,000 13 18 General CDEB Aid: General CDEB Aid is a fixed $4,067,300 shared among Brown, Calumet, and Walworth counties, and it has remained unchanged for more than a decade. Aid eligibility is determined through a complex formula that recalculates each district’s equalization aid based on CDEB enrollment and net program costs, which often results in lower‑property‑wealth districts receiving more aid and higher wealth districts receiving less. Because the formula is influenced not only by our own spending and reporting but also by the spending patterns of other CDEBs and individual school districts, our reimbursement can decline even when our costs increase. As a result, Lakeland School’s aid has steadily decreased while other CDEBs with higher costs and lower property values have seen their aid rise. In the current biennial budget approved by the Wisconsin Joint Finance Committee and signed by Governor Evers it indicates the following budget allocations: 2024-2025 - $4,067,300 2025-2026 - $4,067,300 2026-2027 - $4,067,300 For the 2026–27 school year, we estimate the costs we will be submitting will be $8.25 million in eligible costs for General CDEB Aid. Our reimbursement rate has continued to decline over the past several years as statewide costs rise faster than available funding along with reducing our budget. Each July 1, DPI releases aid estimates for equalization aid for public schools, which assists in projecting the aid to be received. Our General CDEB aid functions as a modified version of equalization aid, incorporating CDEB-specific data. We use these estimates to develop our own projections, running multiple scenarios to arrive at the expected reimbursement amount." Additionally, the reimbursement rate for 2026-27 is anticipated to be 14.55%. To prepare for this, we developed three reimbursement scenarios based on historical trends and DPI’s estimates: ● Scenario 1: No change in Brown and Calumet’s costs Aid: $1,285,867 (15.59%) ● Scenario 2: 5% increase in Brown and Calumet’s costs Aid: $1,244,205 (15.08%) ● Scenario 3: Flat reimbursement rate assumption Aid: $1,155,000 (14.00%) We took the average of these three scenarios to form our projected aid amount: $1.2 million. Based on these assumptions we estimate the statewide reimbursement rate for 2026–27 will be 16.27%, resulting in a final aid amount of $1.2 million for Lakeland School. 14 19 Budgeted Amount: $1,200,000 Medicaid: Wisconsin’s School‑Based Services (SBS) program allows public schools and CESAs to bill Medicaid for medically necessary services included in a student’s IEP, such as therapy, nursing, counseling, testing, and specialized transportation. Since its creation in the mid‑1990s, the program has returned nearly $950 million to Wisconsin schools, with districts submitting claims throughout the year and reporting actual costs annually. ● School‑Based Services (SBS) ○ SBS covers Medicaid‑eligible services provided directly to students with IEPs—such as therapy, nursing support, and personal care—to help them access their education. For 2026–27, we are budgeting $270,000 for SBS, reflecting stable student needs and consistent service levels, so revenue is expected to match last year. ● Cost Settlement ○ Each year, the state reconciles interim Medicaid payments with actual allowable costs, resulting in either additional reimbursement or repayment. For 2026–27, Cost Settlement revenue is budgeted at $150,000, representing a realistic midpoint based on historical variability and anticipated Random Moment Time Study results. ● Medicaid Administrative Claiming (MAC) ○ MAC reimburses administrative work that supports Medicaid‑eligible students, such as care coordination, documentation, and family assistance with Medicaid 15 20 processes. Using both conservative assumptions and last year’s RMTS results, MAC revenue for next year is budgeted at $180,000, reflecting steady eligibility rates and consistent proration. ● Overall Budget Impact ○ These adjustments support reducing the proposed 2027 Medicaid‑related budget from $700,000 to $600,000. Budgeted amount $600,000 IDEA: The 2027 IDEA grant budget has been reduced from $259,490 to $202,623, a decrease of $56,867. This reduction aligns the grant budget with projected eligible expenses, as the School Psychologist and CESA 2 contracts have been moved from the IDEA budget to the tax levy. IDEA is a federal grant that helps offset the cost of providing special education services and related supports to students with disabilities. CDEB receives a portion of IDEA funding through its in-county school districts, with the amount based on each district’s total allocation, the number of students with disabilities it serves, and the number of its students attending Lakeland School. The funding is received as reimbursement after CDEB submits quarterly bills to the districts for eligible expenses. It is also important to note that IDEA funds were not traditionally used in full, resulting in significant carryover funding from year to year. As the budget has become tighter, CDEB has used most of the available IDEA funding, leaving little to no carryover funding available for the following year. Budgeted amount: $202,623 16 21 Expenses In response to the budget deficit we encountered last school year and now as we begin the 2026-2027 school year, Lakeland School has carefully examined all expenditures and made prudent decisions to reduce costs while maintaining essential services. These efforts reflect our ongoing commitment to fiscal responsibility and our goal of minimizing the tax burden on Walworth County constituents as much as reasonably possible. Expense Type 2026 2027 Change Change Explanation Payroll 9,949,810 9,915,792 (34,018) -4% ● Removal of summer school ($63,424) ● Removal of AP Position ($148,809) ● Removal of summer literacy training ($5,876) ● Decrease number of mentors from 21 to 12 ($9,371) ● Increased number of subs from 570 to 650 ($13,809 increase in budget) ● Unfunded Director of Pupil Services (no additional savings) ● Down three Special Education Teacher position for a savings of (122,000) ● Underfill .20 FTE of an Occupational Therapist (22,145) and .25 FTE of a Speech-Language Pathologist (8,276) to accommodate employee requests ● The School Resource Officer removed and will be funded with fund balance for 2027. If the state does not increase funding in categorical aid up to 41% the position will be at risk of being removed from the CDEB budget in 2028 Transportation 166,500 107,840 (58,660) ● Summer school 17 22 -6% Transportation removed ($35,000) ● EC transportation will be funded with fund balance while the county works to transition this unique transportation costs to the school districts, as is consistent with all other transportation costs. An administrative hold will be placed on this while the director will try to determine any other options by working with partner districts Special Services 240,188 208,365 (31,823) -6% ● Psychological services decreased by $19,000 (110 day contract starting in 27-28) ● We made several updates to our web hosting and digital resources, adding new tools to support workflow efficiency while removing platforms that are no longer needed. Overall, these adjustments streamline our subscriptions, align services with current program needs, and ensure we’re investing in tools that provide the most value Recreational Activities 13,600 8,260 (5,340) -1% ● Transitioning Camp to in-house Indirect/Hwy/Int erdepartmental 1,857,986 1,975,290 117,304 13% CESA/TOS 24,722 90,422 65,700 6% ● Increase is due to VI Teacher temporary replacement. Will be partially covered by payroll savings associated with VI Teacher being 18 23 vacant until 27-28 school year. Transfer Reserves 179,000 225,000 5% ● Removed $54,000 in Insurance Contingency ● $60,000 in Capital Project Contingency ● $65,000 Salary Reserves ● Added $100,000 Operating Contingency funded by fund balance Total Expenses 14,156,417 15,076,144 919,727 34,018 Decrease in Payroll 117,304 Increase in Indirect Costs 780,000 Increase in CIP 2027 Proposed Tax Levy The proposed tax levy for 2027 as currently written for Lakeland School is $6,356,537 which is an increase of $462,163 from the 2026 levy of $5,894,374. 19 24 Capitol Improvement Projects (CIPs) Short Range Project 2026 2027 2028 2029 2030 1 Exterior Siding Repair 550,000 2 Transport Van/Replacement 80,000 83,000 3 Dishwasher Replacement Monitor Monitor 4 UV Lights & Controls Upgrade 35,000 191,000 5 Flooring Replacement Annual 40,000 40,000 40,000 6 Chiller and Partial Roof Replacement 765,000 7 Pool Deck and Grate Reno; Pool Filter Replacement 60,000 650,000 8 Corridor Flooring Replacement 55,000 1,500,000 9 Replace Roof Mounted Exhaust System 10,000 90,000 10 Commercial Appliance Replacement 50,000 50,000 11 Classroom Cabinet Redesign 80,000 12 Building Infrastructure Assessment 50,000 13 West Playground Area 65,000 635,000 Total 35,000 1,036,000 3,300,000 2,308,000 90,000 20 25 Project Notes 1. Exterior Siding Repair: Fiber cement siding is fading, peeling, shrinking, and fracturing. Poses a water infiltration problem. DPW negotiated a one time payout for about $14,000. Garland assessed the extent of the project. They recommended a total replacement around the school, interior courtyard, and second floor areas. This will include refinishing of the cedar shades over the windows and board replacement as necessary. It is planned for bid in 2026 and execution in 2027. 2. Transport Van/Replacement: This is to replace our current van/bus. Our fleet expanded to two vehicles because of the Kara Foundation grant. This project is budgeted for one mini van with a wheelchair lift. Utilization history doesn’t support 2 vans. But will monitor to see if the need presents itself for 2029. The current amount in 2029 is a place holder. 3. Dishwasher Replacement: A majority if not all of the appliances in the kitchen are Hobart. Hobart comes out annually to conduct a preventative maintenance assessment to make recommendations for repairs. DPW analyzes the assessment and works with the director as to what steps make sense for next steps. The dishwasher has the most breakdowns out of any piece that we have. It is recommended by DPW to delay this project and continue to monitor for repair issues. Reassess next year. Budgeted in 2026 $41,000 for the next three years and see if the funds need to be shifted. 4. UV Lights and Controls Upgrade: UV lights are typically used as a secondary disinfection method to enhance water quality and safety. The lights are original to the building. 2026 will be a study year with execution in 2027. Design work hasn’t begun yet but will be done in 2026 5. Flooring Replacement Annual: Currently we have about 10% of our original floor tile stock left. The plan is to save that tile for hallway replacements. It was communicated that the budgeted amount was going to change to 40,000 to slowly start replacing all the tiles in classrooms. Currently 9 classrooms have been completed with a LVT tile replacement at about 10,000 for each. LVT tile is a synthetic tile that offers more durability for things such as scratches, dents, and wear - making it suitable for high traffic areas. By using LVT tile the end goal is that no floors at Lakeland School will need to be waxed and buffed. 6. Chiller and Partial Roof Replacement: The Chiller (provides chilled water to the air conditioning system) and Roof replacement project is set to have a life cycle assessment and design conducted in 2027 with work completed in 2027. The chiller is original to the building. 7. Pool Deck and Grate Reno; Pool Exterior Windows and Filter Replacement: Design is scheduled for 2027 and 2028 is the execution of all tile, pool grate renovation, and filter replacement. Pool Deck and Grate will be studied to see if we can apply a different strategy to maintain the tiles. Continue to do maintenance. Windows age and sealant 21 26 failures and evaluate further to see if we need to consider replacing the windows. DPW will examine everything and determine a maintenance only strategy for each area or replace and look to see if there is a more cost effective option with the hope that we can save some additional funds. 8. Corridor Flooring Replacement: Stock tile is currently at 10% left and we no longer can get it. Will explore polished and stained concrete or possibly LVT. The only problem with polished and stained concrete is that the floor wasn’t prepped for it when the concrete work was originally done. There may be places where there is exposed aggregate. May look similar to Walmart flooring. DPW is going to look for any alternate products. A larger driver will be the pattern on the floor and if it should be part of the project. 9. Replace Roof Mounted Exhaust System: This system will be at the end of its life cycle as it was original to the building. Lakeland School has 18 exhaust fans, for example kitchen, pool room, bathrooms, and boilers to name a few. 2027 will be a study year and 2028 will be execution. 10. Commercial Appliance Replacement: The replacement is for kitchen appliances. May be looking at doing a split replacement depending on what Hobart recommends for the oven and hot box but will continue to monitor. 11. Classroom Cabinet Redesign: Would have liked to redesign all cabinets but in order to decrease the amount 2027 we have 80,000 to begin with our middle school classrooms since they present the most need. 12. Building Infrastructure Assessment: Every 10 years bring in a consultant to look at the mechanical and electrical and plumbing assessment for recommendations for deficiencies and code. Condition Assessment Study. 13. CDEB West Playground Replacement: Design in 2027 which will feed into 2028. Equipment and surfacing. 2028 try to seek donor funding of 100,000 with execution in 2029. 22 27 Long Range CIPs Project 2031 2032 2033 2034 2035 2036 Parking Lot Refurbishment 40,000 2,430,000 Roof Replacement 60,000 1,300,000 South Playground 650,000 Air Handling Unit Upgrades 50,000 1,000,000 Emergency Generator Replacement 250,000 Bleacher Replacement 100,000 100,000 4,430,000 1,250,000 100,000 23 28 Lakeland School Division Summaries Division summaries in organizations serve several important purposes. They provide a clear record of accomplishments, providing accountability for performance. By outlining goals, division summaries help align objectives with the overall strategic plan of Lakeland School. Additionally, they allow for the assessment of whether Lakeland School is meeting its targets and where improvements are needed. Summaries facilitate communication within the organization, ensuring everyone is informed about the direction and achievements. Overall, these summaries are essential for effective management, planning, and communication. Below are the division summaries for Lakeland School which were collaboratively developed for the 2027 budget with the school leadership team. The reader will find below three summaries for administration, educational programs, and support services. Department: Children with Disabilities Education Board Division: Administration Mission Statement: Plan, maintain, and evaluate the Children with Disabilities Education Board’s (CDEB) programming and fiscal functions. This division provides operation/business management and support, including tuition agreements, purchased services, consultants, employee training and travel, student records management, and fiscal accounting responsibilities. Major Achievements: 1. Sought feedback from district partners regarding Lakeland School’s service areas of strength and growth. 2. Wrote a comprehensive report that was delivered to both the CDEB and partner school districts based on meeting findings. 3. Improved programming following trauma informed and neuro-affirming best practice by purchasing Ukeru units, along with all staff being trained in proper implementation. 4. Extended school day to increase instructional minute thresholds for professional development and family engagement hours. 5. Partnered with the Kara Foundation to purchase a medium top passenger van. 6. Initiated development of a Lakeland School Revenue Guidebook. 7. Began researching how a Children's Long-Term Support (CLTS) Summer Camp could look at Lakeland School in collaboration with the Wisconsin Department of Health Services (DHS). 8. Updated the Lakeland School Emergency Operations Plan in collaboration with the Walworth County Sheriff's Office. 9. Completed the Annual School Safety Site Assessment. 10. Completed the Lakeland School Courtyard Renovation project which includes painting, replacement of sunshades, and building of new pergola. 24 29 11. Completed phase one of classroom tile installation. 12. Completed the Wisconsin Department of Public Education Food Service Administrative Review. 13. Started to implement a Policy Governance model to ensure legal compliance with state and federal laws and to provide clear operational guidance. 14. Brought forward approximately 40% of the legally required policies to the Walworth County CDEB for approval. 15. Revised and finalized school handbooks to align to adopted school policies. Goals and Objectives: Good government ● Develop, refine, seek CDEB approval and implement 20 more required policies. Community safety, health, and quality of life ● Develop a guide and preliminary budget for the CDEB to consider the implementation of a CLTS Summer Camp at Lakeland School. ● Review and revise the Emergency Operations Plan and supporting tools to increase safety efforts, communication, and training to remain compliant with Office of School Safety (OSS) requirements. Community assets ● Improve family engagement and community partnerships. ● Complete and distribute reference and guidance materials to support staff, partner district administration and family understanding of the following: Profile of a Lakeland Student, and placement processes and timelines. ● Develop comprehensive materials for the upcoming collaboration meeting to support the Lakeland School leadership team in addressing focus areas identified by partner districts, strengthening inter‑agency collaboration. ● Establish Clear parameters for identifying prospective students and ensure transparency and alignment in the placement process. 2024 2025 2026 2027 Performance Indicators: Actual Actual Projected Goal Classrooms outfitted with Ukeru mats and equipment 0 0 3 5 Legally required policies brought to CDEB for approval 0 25% 50% 75% 25 30 Partner School District Meeting to Address Areas of Growth 0 0 4 8 Office of School Safety (OSS) Compliance 80% 80% 95% 100% Performance Indicator Notes: n/a Significant Changes: Revenues: ● Decreased local charges by $135,000 for anticipated number of tuition students ● Decreased Federal Individuals with Disabilities Education Act (IDEA) funding by $56,867 based on utilization of prior year funds and decreasing aid from the Federal Government. ● Decreased state grant revenues by $148,856 for General CDEB Aid based on historical decrease in reimbursement rate. ● Decreased investment income by $54,860 due to lower cash balance. Expenditures: ● Increased indirect cost allocations by $118,084 due to higher support costs. ● Decreased insurance contingency transfers by $54,000 as payroll savings is enough to cover changes in insurance elections. ● Decreased psychological services by $84,450 now being budgeted in support services due to reduced IDEA funds. 26 31 Department: Children with Disabilities Education Board Division: Educational Programs Mission Statement: Provide appropriate and necessary services to students who have special education needs, with the end goal to achieve the most significant level of independence possible, in the least restrictive environment, relating to their education/life skill needs. Major Achievements: 1. Created 11 different family engagement opportunities to meet family needs. 2. Reduced the number of seclusion and restraint incidents by 96% when compared to the 2023-2024 school year, with only 5 incidents occurring in the 2025-2026 school year. 3. Increased number of Stand-By Calls made in alignment with Behavior Response Protocols by 128% when compared to the 2024-2025 school year. 4. Lakeland School’s Stand By Team successfully coached grade-level departments during incidents involving student dysregulation to improve adherence and understanding of newly implemented Behavior Response Protocols. 5. Formed a Student Council opportunity for students in grades 9-12, in which students carried out service-learning projects connected to community organizations, such as the Lakeland Animal Shelter and Veterans Roll Call. 6. Revised transition assessment format and process to increase family engagement; 100% of families participated in the transition assessment process. 7. Trained 100% of staff in Ukeru during the 2025-2026 school year. 8. Trained staff regarding the Interoception Curriculum by the pilot group participants strengthening staff-to-staff training. 9. Created an Amygdala Room and Limbic Lounge as regulation environments connected to best practice in Social Emotional Learning and trauma-informed care. Goals and Objectives: Community safety, health, and quality of life ● Train, model, and coach all teachers and therapists to incorporate neuro-affirming objectives in student IEPs. ● Strengthen school-wide data systems and instructional decision-making through collaborative implementation of Otus and the EC-12 Student Shared Drive. ● Collaborate with the Stand-By Team to ensure consistent implementation of the Ukeru model and Lakeland M-LSS resulting in improved student regulation and maintained reduction in Seclusion/Restraint outcomes. ● Implement the Interoception Curriculum building-wide through the use of structured lessons, Interoceptive Activities (IA) on the Fly, and co-regulation tools in collaboration with the School Counselor and grade-level department teams. ● Achieve a continued decline in the use of Seclusion and/or Restraint. 27 32 2024 2025 2026 2027 Performance Indicators: Actual Actual Projected Goal Family Engagement Opportunities 5 8 8 12 Staff trained in Ukeru 4 100% 100% 100% Seclusion and Restraint (S/R) 142 23 <10 <5 Performance Indicator Notes: n/a Significant Changes: Revenues: ● No Significant Changes. Expenditures: ● Increased Transfer to CESA by $65,700 for a contracted Vision Impaired Teacher. ● Decreased cross category expenditures by $40,600 due to the elimination of the Summer School program. 28 33 Department: Children with Disabilities Education Board Division: Support Services Mission Statement: Provide appropriate case management of services supporting each student’s Individualized Education Plan (IEP) in special education, including occupational therapy, physical therapy, health and nursing, school psychology, food services, and extended school year services. Major Achievements: 1. Carried out 962.5 hours of family engagement opportunities during the 2025-2026 school year. 2. 99% of staff completed the required 18 family engagement hours beyond school hours. 3. Held three school-wide events, one per trimester, to engage parents, guardians, siblings, extended family members, and our students. 4. Provided opportunity to families to provide feedback related to family engagement activities at least 3 times throughout the school year 5. Collaborated with Friends of Lakeland School (FOLS) to redesign 100% of Quiet Rooms with sensory-rich equipment to provide a supportive environment for co-regulation and self-regulation needs. 6. Implemented a new Functional Behavior Assessment (FBA) process and documentation system which utilizes a strength based and neuro-affirming approach. 7. Took the preliminary steps to transition Lakeland School to the data analytics platform called Otus to enhance data driven strategies. 8. Completed the Lakeland School Multi-Sensory Environment (MSE) room which will enhance student sensory regulation. 9. Trained all staff in neuro-affirming and trauma informed practices through professional development sessions including but not limited to Supporting Neurodiverse Students Network (SNS), Greg Santucci, Dr. Ross Greene, Incident Reflections, and more. 10. Staff members shared various well-received presentations at national and state-level conferences such as: Closing the Gap, Autism eXchange Conference, and Transition Advisory Network. Goals and Objectives: Community safety, health, and quality of life ● Utilize a Family Engagement Committee to increase meaningful student and family engagement, as well as strengthen partnerships with community organizations by providing opportunities and events based on parent feedback and need. ● Train all staff in how to effectively use the redesigned quiet rooms to enhance student regulation and proactive behavioral supports. ● Present best practices and support service information at national and/or state-level conferences within the 2026-2027 school year. 29 34 2024 2025 2026 2027 Performance Indicators: Actual Actual Projected Goal Family engagement hours outside of school day hours 2 18 18 18 Percentage of family participation in engagement opportunities N/A 70% 75% 90% Redesign Quiet Rooms N/A 0% 100% 100% Engage in professional conference presentations 2 4 3 3 Performance Indicator Notes: n/a Significant Changes: Revenues: ● Decreased state revenue grants by $30,000 based on historical decrease in reimbursement rate for Medicaid. ● Increased state revenue by $63,753 for the creation of Children’s Long-Term Support Program (CLTS) Summer Camp. Expenditures: ● Decreased transportation by $26,000 due to the elimination of early childhood transportation. ● Increased expenditures across categories by $63,753 for the creation of a Children’s Long-Term Support Program (CLTS) Summer Camp. 30 35 Lakeland School - Walworth County CDEB | W3905 County Rd NN, Elkhorn, WI 53121 www.co.walworth.wi.us/1168/Lakeland-School | (262) 741-4118 (o) | (262) 741-4135 (f) Memorandum To: Children with Disabilities Education Board (CDEB) From: Matthew P. Huettl, Director of Special Education-Lakeland School of Walworth County CDEB Date: September 3, 2026 RE: September Notification of Children with Disabilities Education Board Projected Revenue Shortfall Lakeland School is experiencing several revenue shortfalls across multiple major funding streams, reflecting both local and statewide financial pressures. While some of these variance’s stem from our own budgeting assumptions, many are driven by external factors such as fluctuating state aid formulas, changes in allowable reimbursement criteria, and increasing costs across Wisconsin school districts. These issues continue to affect how much aid is available statewide and how it is distributed among CDEBs and individual districts. These shortfalls reflect broader statewide trends, where many districts are operating at deficits, relying heavily on referendums, and facing declining state aid. Revenues: • General CDEB Aid: The statewide fixed allocation of $4,067,300 has not increased in over a decade. Aid distribution is highly sensitive to other districts’ spending and property values, causing Lakeland’s reimbursement to decline even as costs rise. It is anticipated at this point that Lakeland School will be $148,219 under budget. • High-Cost Aid: Despite a statewide increase in funding, rising costs across districts reduced reimbursement rates. Lakeland received 31% instead of the intended 50%, resulting in a $105,108 shortfall. • Medicaid: Lakeland received $316,309 - affected by lower rates, changes in direct/indirect cost calculations, and annual fluctuations in Medicaid cost settlement variables. In total we are $83,691 under budget. 36 Lakeland School - Walworth County CDEB | W3905 County Rd NN, Elkhorn, WI 53121 www.co.walworth.wi.us/1168/Lakeland-School | (262) 741-4118 (o) | (262) 741-4135 (f) • Tuition Revenue: Came in lower than expected due to not being to enroll the budgeted amount of tuition students. We budgeted for five new students and only four new students were enrolled during the 2026-2027 school year. We had a few more tuition students enrolled, but they unenrolled for various reasons which would have assisted us in making budget if they had remained. We ended the school year with 10 students. Secondly it was understood that one of our new tuition students would need transportation but, in the end, they did not need it and therefore we were not able to bring forth the budgeted revenue. Lastly the timing of when tuition students enrolled impacted our revenue as well since if a student was only here for the partial school year, we wouldn’t bring in the full budgeted amount. In total there is a total shortfall of $263,000. • Total revenue shortfall with no adjustments: $600,018 • Current revenue shortfall with adjustments: $448,018 o $30,000 by increasing interest revenue o $65,000 from the salary study contingency o $57,000 for unused transportation expense Conclusion: Because major revenue streams depend heavily on prior year expenditures, statewide trends, and complex reimbursement formulas that are often based on the previous school year, projecting them presents a fair degree of challenges. Furthermore, reductions in expenditure do not always translate into long-term savings; in many cases, lowering costs can reduce the reimbursement amounts we qualify for in future years, since state and federal formulas often assume higher spending levels when allocating aid. As a result, even when we manage expenses responsibly, our revenues may not rise or may even fall relative to what would normally be expected. Given these realities, Lakeland may need to rely more on the tax levy to stabilize funding moving forward. Recommendations: • Continue monitoring fund status and make budget adjustments if significant variances arise. • Use the latest information for 2027 budget development and align projections more closely with historical revenue patterns; anticipate the need for a higher CDEB tax levy. • Evaluate operational reductions that have minimal student impact, acknowledging that some cuts may decrease future revenue. 37 *NOTICE OF APPROVAL* This Finance Committee Budget Adjustment or Transfer document has been approved by Finance Department staff as to account information and form. Budget Adjustment or Transfer approved by Finance Committee on ________________________. Preparer: Lauren Kuntz Budget Adjustments, Transfers, and Amendments Form 1-215-B Walworth County Finance Committee Budget Adjustment or Transfer Reference Number: 90007 Department: Approvers: COUNTY ADMINISTRATOR Mark Luberda FINANCE DIRECTOR Jessica Conley CHILD. W/ DISAB. ED BD Matt Huettl Amendment Type: FC ADJ Posting Month/Year: 09/2026 Reason for Request: Department: Children with Disabilities Education Board (CDEB) The purpose of this budget amendment is to address a portion of the revenue shortfalls related to both General CDEB aid and tuition payments. The County is experiencing a $150,000 shortfall in General CDEB aid due to lower -than expected payments, along with a $263,000 shortfall in tuition revenue. A portion of the General CDEB aid shortfall—$30,000—was previously addressed through the July Finance Committee Budget Amendment 70038, which increased interest revenue in response to higher-than-anticipated interest rates. This current amendment addresses an additional $65,000 by reallocating the salary contingency originally budgeted for the salary study, which is no longer expected to be implemented until 2027. After this amendment is applied, the remaining unaddressed General CDEB aid shortfall is $55,000. Tuition payments were lower than anticipated in part due to caution surrounding a potential transportation need for one of the tuition students. Had transportation been required, Lakeland School would have incurred the cost and subsequently billed the sending district. However, transportation was not required in the 2025 –2026 school year and is not expected to be needed for the 2026–2027 school year. After this amendment is applied, the remaining unaddressed tuition shortfall is $206,000. Additional adjustments will be made as revenue overages or expenditure savings become available throughout the year. 38 *NOTICE OF APPROVAL* This Finance Committee Budget Adjustment or Transfer document has been approved by Finance Department staff as to account information and form. Budget Adjustment or Transfer approved by Finance Committee on ________________________. Preparer: Lauren Kuntz Budget Adjustments, Transfers, and Amendments Form 1-215-B Accounts Description Org Object Project Account Type Amount SALARY RESERVE TRANSFER 2310 55115 Expense -$65,000 ST GRT - OPERATING 2310A03 42310 Revenue $65,000 TRANSPORTATION SERVICES 2380 52150 Expense -$57,000 LOC TUITION 2310 42655 Revenue $57,000 Subtotal by Expense: -$122,000.00 Subtotal by Revenue: $122,000.00 39 Approved Enacted 12/06/2019 Form 6-120-A Revised 01/17/2025 Committee Awards and Reports Page 1 of 1 Form 6-120-A: Purchasing Report to Committee Committee: ☒ Finance ☐ Public Works County Department: Children w/ Disabilities ED BD Department Contact: Matthew Huettl Why is this being reported? ☒ Ordinance Exempt Procurement: Purchase is exempt from standard purchasing methods due to Ordinance: 17-27(a)(22) School supportive services obtained through Cooperative Educational Service Agency 2 (CESA2) ☐ Emergency Procurement (per Ordinance 17-26) (Attach memo regarding emergency for further explanation.) Start Date: August 17, 2026 End Date: June 30, 2027 Name of Vendor: Cooperative Educational Services Agency (CESA) 2 Total Amount of Purchase: $109,497 Summary of Goods/Services Purchased: The individual who filled the Vision Teacher position at Lakeland School resigned her position for a position out of state. We have the position posted but have not been able to hire a candidate since no one has applied for it. Services in student Individualized Education Program (IEP) require these vision services. CESA 2 can fill this role until we hire a replacement. The position posting will remain active on the Walworth County Website and the Wisconsin Education Career Access Network (WECAN) until a suitable replacement is hired. Additional Comments: We have an existing contract with CESA 2 to perform audiology services for the 2026/2027 school year. CESA 2 performs these audiology services for us every year and has since August 2005. This report is to notify the Committee that we are adding vision services to this existing CESA 2 contract. _________________________________________ _____________________________ Department Head Signature Date _________________________________________ Department Head Name _____________________________________________ Date Presented to Committee Matthew P. Huettl 8/7/28 9/17/26 40 Lakeland School - Walworth County CDEB | W3905 County Rd NN, Elkhorn, WI 53121 www.co.walworth.wi.us/1168/Lakeland-School | (262) 741-4118 (o) | (262) 741-4135 (f) Memorandum To: Children with Disabilities Education Board (CDEB) From: Matthew P. Huettl, Director of Special Education-Lakeland School of Walworth County CDEB Date: September 9, 2026 RE: Reports and Correspondence 8. Reports and Correspondence a) CDEB Chair b) CDEB Director 1) July & August Donations i. Whitewater Lions Club, Unrestricted – $1,000.00 ii. Champions Lions Club, Restricted for Fees Special Olympic Events – $250.00 2) Beginning of the School Year Review i. I would like to begin by thanking everyone involved in organizing this year’s professional development. It was a tremendous effort, and I would like to believe it paid high dividends to all participants. I want to especially recognize Principal Holly Smith, who dedicated countless hours coordinating the schedule, developing sessions, and delivering many of the sessions. ii. We welcomed six new staff members on day one with a morning snack bar and provided professional development on Lakeland School Core Values, Behavior Response Protocols, L-MLSS, Neuro-Affirming Approaches, and several other topics. During the all-staff return, the team kicked off with a welcome-back presentation that highlighted the sessions staff would be participating in, celebrated years of service, and introduced new team members. Overall, it set a strong foundation for the remainder of professional development. iii. There were many highlights worth celebrating. One particularly meaningful experience was learning from Ted Neitzke of CESA 6, who delivered an engaging presentation using storytelling infused with humor and personal anecdotes. His message reinforced several concepts we are implementing at Lakeland School, especially the 41 importance of leveraging students’ strengths and relationships to make a positive impact. iv. In addition to this and to name a few, all staff received training in Ukeru, OTUS, neuro-affirming practices, and transition goal writing. The capstone of professional development was an escape room created by Principal Smith, where teams worked together to answer questions related to the sessions taught this year. It was a fun, interactive way to summarize and reinforce learning. Everyone I spoke with said it was the highlight of this year’s convocation! 42