Special Town Meeting on Tuesday approved transferring $500,000 of free cash to the Bedford Finance Committee reserve fund, to ensure that there’s sufficient money to cover a current deficit in the school budget.
Finance Committee Chair Ben Thomas said “a number of steps are being taken to address this shortfall,” but there is “a possibility that more funds may be required” than the current balance of $550,000 in the reserve fund.
Thomas said the balance of surplus revenue – “also known as free cash” – is $7.5 million. Once all reserve fund requests have been addressed, he said, whatever remains reverts to free cash.
The reserve fund, Thomas explained, is dispensed by a vote of the Finance Committee, “which allows for rapid action in time-sensitive situations.” As the fiscal year draws to a close, town departments request transfers to cover unbudgeted, unplanned expenses.
The school budget deficit, in the neighborhood of $500,000, results primarily from unbudgeted overruns for out-of-district special education tuition as well as the costs of transporting students with special needs.
There was little discussion before the vote to approve the transfer. Former Selectman Walter St. Onge called on the School Committee to monitor expenses every month instead of quarterly, as planned by the superintendent of schools.
“This will be especially important with a new collective bargaining agreement with teachers, which is going to be expensive,” St. Onge said. Contract talks are ongoing; the current contracts with teachers and education support professionals expire on June 30.
He also pointed out that, unlike the municipal budget, the School Committee can shift money among line items. “They can manage unbudgeted circumstances better than the town side can but only if they exercise their authority,” he said.
St. Onge asked the School Committee “what budget reductions have been made or considered to minimize the amount of the reserve fund transfer. Superintendent of Schools Cliff Chuang responded, but did not address the question, instead noting cost containment efforts directed toward the fiscal 2025 budget.
In answer to another question from St. Onge, the superintendent said some of the so-called state circuit-breaker aid for districts that spend beyond a special education threshold will not be available next fiscal year because it was accelerated to address the current deficit.
Loading ...
