Board of Education Over $175K in the Red

The Board of Education anticipates it will end the current fiscal year over $175,000 in the red. It's the result of a series of financial blows that have left town officials scrambling for ways to recover. Tuesday evening's Board of Finance meeting heard school administration address the shortfall and re-emphasize the challenge of the budget process.

"This is reflective of how difficult it is to deal with this. We have no flexibility," said Board of Education Chair Kim Westcott.

The deficit falls broadly into two categories: short funding from the state and legal fees.

"When the state tells you you're getting less, you have no ability to adjust," said Westcott.

That's what happened this past year, when the district budgeted to receive more excess cost reimbursement funds than the state was actually able to hand over. Excess costs refer to the costs of providing special education and related services to children with needs in "excess" of 4.5 times the district's per-pupil budget (in excess of $65,000). If fully funded, Darien would have received over $3 million in excess cost reimbursement.

"The state gave us a significant haircut," said Westcott.

Economic pressure has done a number on the state, and as a result, the district is on track to receive only 84 percent of estimated funds. The shortfall leaves Darien with a deficit of over $300,000.

The good news, said Westcott, is that an odd $230,000 in stabilization funds—a separate grant from excess costs—will help to close the hole to about $76,000 said Westcott.

But unless the Board of Finance helps to foot mounting legal bills, the deficit may grow.

Westcott said that five special education suits, one of which went to due process, have incurred legal fees of up to $60,000 to date. The suits are currently in mediation, and Westcott anticipates fees to climb to $100,000 to $150,000 in the coming months.
 
 "We're not prepared to give you an estimate tonight, but we expect significant legal fees to still come in," she said.

The Board of Finance has a special reserve for special education matters. Chair Murry Stegelmann said he's willing to dip into that $150,000 pot if necessary but would prefer not to empty it.

"We don't want to start next year with zero," said Stegelmann.

Westcott said it is her hope that legal fees will diminish, if not disappear as the special education program in Darien continues to grow in efficiency. The Board of Education recently invested in a comprehensive analysis of the program and recommendations.

"It's going to take some time to decide if and how we change business," said Westcott. "The hope is things will continue to improve with more efficient practice."

The Board of Finance encouraged the Board of Education to return next Tuesday, April 8, with a more accurate estimate of legal costs.

"We have to collectively think of how to solve this," said Westcott.

Without support of the Board of Finance, the Board of Education could be staring at a $176,000 to $226,000 deficit.