Board Says Deficit Shouldn't Exceed $350K, Requests Appropriation

A special meeting held Friday morning saw the Board of Education pin a number to the current fiscal year's deficit, voting unanimously on a request to the Board of Finance for an appropriation from the general fund in an amount not to exceed $350,000 to balance the 2009-10 budget. The board will bring that request, a well-considered estimate, to the Representative Town Meeting for approval at its Annual Budget Meeting, May 10.

"Out of respect to the RTM, we have pushed ourselves to provide as accurate an estimation as we can, looking ahead months for a number that is reasonable, logical and supported by the information we do have. It's not easy for any business entity," said Superintendent of Schools Don Fiftal.

Board of Education Director of Finance Richard Huot has predicted a $234,239 shortfall. The school district has actually run nearly $621,000 over its approved $68.7 million budget for the current year—the result of short funding from the state, mounting legal fees and a number of budgetary challenges that transformed the special education budget by nearly $500,000 in the month of March alone.

Over the course of 30 days, Huot faced an unintentional misposting of $191,000 that caused speech pathology account to soar, an employee's return from maternity leave and a $50,000 encumbrance fee.

"The shifts that take place are a reflection of the care of the process and the checks and balances that take place. I have a lot of faith in the way we work, but we always can be subject to error," said Fiftal.

The good news is that an odd $230,000 in stabilization funds and about $156,000 from the town's OPEB trust (money used to cover a portion of post employment benefits) has helped to close the gap to the predicted $234,236, said Huot.

"While I feel comfortable with what I've projected, we still have a few weeks left and some of these accounts are pretty difficult to get a handle on," said Huot.

Legal fees and summer school—perhaps the most difficult to predict—could see Huot's deficit grow or shrink significantly before the end of the fiscal year.

Huot said the board has spent about $150,000 per month in legal fees, the result of a number of special education lawsuits that went into mediation this spring. Settlements are also expensive, as they often mean a Darien-backed tuition at a school out of town.

According to Fiftal, there are currently a few issues in dispute, which could potentially go into mediation and trigger a settlement before or after July 1.

"At any point, a parent can say: I'm not happy with the way these discussions have gone, and I'm going to file for some official mediation," he said. "It's just the world of uncertainty that we live in with special education. It's the way the process works, and the way of due process in education."

A second question mark looms over summer school revenue. Tuition is more expensive this year, and revenue to date is lagging by about 15 percent, said Board of Education Chair Kim Westcott. Board members anticipate ending the enrollment period with a revenue shortfall of at least $50,000; some felt more comfortable with predicting a drop of $75,000. 

"It seems to me we're in a range of 325 and 350 so I think we should come to closure on that range," said Westcott.

The board voted unanimously on a request for an appropriation not to exceed $350,000. Should the deficit run shy of that number, the board will refund the balance to the town, and should the deficit run over the appropriation, the Board of Finance will dip into the town's $365,000 special education reserve to close the hole.

The Board of Finance will hold a special meeting Tuesday evening to discuss the request.