Explore Special Education Funding


Special education services are legally required and essential, but the dedicated revenue provided for those services does not always cover their full cost. This explorer uses Minnesota Department of Education data to show the resulting special education cross-subsidy for Forest Lake Area Schools and selected neighboring and peer districts.

Why this matters: A special education cross-subsidy is the portion of special education cost that must be supported with other district revenue. A larger cross-subsidy does not by itself indicate that a district is overspending or operating inefficiently. Student needs, service models, tuition adjustments, staffing, district size, and state funding formulas all affect the result.
What this tool compares: The FY2024 district-by-district table published by MDE reports state-funded special education expenditures and categorical revenue, then subtracts general education revenue reasonably attributable to special education students to calculate an adjusted net cross-subsidy. MDE notes that the district table excludes federal special education expenditures and revenues, so it is a close approximation rather than the more comprehensive statewide calculation.

How to Read the Results

Adjusted net cross-subsidy: the district-level approximation of special education cost remaining after categorical revenue and adjusted general education revenue attributable to special education students are applied.

Per WADM: MDE divides the adjusted net cross-subsidy by adjusted weighted pupil units. This normalizes the total for district size and is more useful for peer comparison than raw dollars alone.

Categorical funding coverage: categorical special education revenue divided by the state-funded special education expenditure reported in MDE's district table. This is a descriptive calculation made by this explorer.

Not a performance score: higher or lower cross-subsidy amounts do not establish service quality, efficiency, compliance, or student outcomes. The purpose is to make a difficult funding issue easier to understand and compare.

Sources and Definitions

FY2024 district cross-subsidies
MDE Special Education Cross-Subsidies report
Minnesota special education finance
Minnesota Department of Education
Why federal funding is not included in the peer table

MDE states that some data used in its statewide cross-subsidy calculation are not available at the individual district level. The district-by-district appendix therefore excludes federally funded special education expenditures and revenues and uses a simpler methodology that MDE describes as a close approximation. This explorer follows that district table rather than attempting to create a different methodology.

Why use adjusted weighted pupil units?

Raw cross-subsidy dollars naturally rise with district size. MDE therefore reports the adjusted net cross-subsidy per adjusted weighted pupil unit (WADM). The normalized figure allows districts of different sizes to be compared more meaningfully, although differences in student needs and service delivery still matter.





Forest Lake Area Schools