School Finance Director Projects $477K Budget Shortfall

Darien Public Schools finance director Richard Huot is projecting a budget shortfall of some $476,879 at the end of the current fiscal year due in large part to increasing special education costs for children who are enrolled in schools outside the district.

Huot addressed the apparent deficit Tuesday at the Board of Education's meeting.

The district had spent $1,722,433 on tuition for Darien students who are enrolled in non-public schools through March 1, Huot said, exceeding the entire fiscal year’s appropriation of $1,128,458. At that rate, Huot projects the expenses to reach $2,254,818 by June 30, the end of the 2010-11 fiscal year.

Huot said he also anticipates overruns of $111,104 on consultant services, $149,339 on legal services, $72,998 on out-of-district special education transportation, and $44,222 on a therapy consultant.  

Conversely, Huot said he expects the district to save $185,530 on health insurance, $47,193 on FICA/Medicare, and $57,500 on telephone utilities.

Superintendent Stephen Falcone addressed the sobering financial picture Tuesday while highlighting the savings in utilities and medical insurance.

“We have curtailed any spending that is not directly related to instruction,” Falcone said. “We are going to try to meet the budget."

Chairman Kim Westcott said she will formally notify the Board of Finance of the projected deficit but that she could not pinpoint how much money the board will seek because too many factors remain unknown.

“I do not know if we will be able to do this on the March 22 meeting or not,” she said. “We will begin to zero in what the actual deficit will be.”

“The administration kept the lid on it as much as possible. Sadly, we have been through this before,” Westcott added, referring to a similar shortfall from a year earlier.

At the time, the district was to cover a projected $234,000 shortfall. The Board of Education  of the $350,000 approved by the RTM to cover the gap.

“If we were fully funded by excess cost grants, that would give us another one million dollars," she said. "If we had another one million dollars in excess cost grants, we would not be in this position."

Darien requested the state pay $3,588,722 through excess cost grants, which help to fund special education expenses. However, Huot said he expects the state to pay just 75 percent of his request.

“I would rather estimate conservatively,” Huot said.