Schools face emergency budget deficit

A recent uptick in out-of-district special education spending has put the Canton school budget deep in the red for the current fiscal year while casting further doubt and uncertainty over school officials’ budget plans for FY19.

In a detailed report to the School Committee last Thursday, School Business Administrator Barry Nectow said the operating budget began to show signs of stress just in the past few weeks, fueled by an unforeseen spike in special needs tuition and transportation costs. Additionally, Nectow said enrollment increases at the Rodman Early Childhood Center will require the district to add a sixth classroom in March at a cost of roughly $75,000.

After factoring in all of the unanticipated expenses along with the shared cost of a school facilities feasibility study, Nectow said the schools are looking at a projected deficit of $778,555 in the fiscal year ending June 30. If they tap into the Special Education Stabilization account ($110,000) and use the preschool revolving fund to finance the new classroom at the Rodman, Nectow said they could reduce the deficit to $593,555.

School Committee Chairman Mike Loughran said that he has notified selectmen, the Finance Committee, and Finance Director Jim Murgia about the emergency fiscal situation. Loughran is hoping that the FinCom will allow use of the Special Education Stabilization Fund and town cash reserves to help close the deficit.

However, both Loughran and Superintendent Dr. Jennifer Fischer-Mueller acknowledged that planning for next year’s school budget is difficult because of the fluctuating special needs costs.

Fischer-Mueller said she is reevaluating current spending, including new hires and replacement positions, consultant services, and professional development not supported by a grant. “A shortfall of this size is difficult to reconcile given that approximately 95 percent of the annual operating budget is encumbered for salaries, transportation contracts, utilities, and current tuitions for already established out-of-district placements,” she said.

Since January 1, the School Department has experienced an unusually high increase in special education tuition and transportation spending. Nectow said the increases can be attributed to out-of-district placements for both new students moving into Canton and several students enrolled in the Canton Public Schools requiring services that the School Department is unable to deliver.

From September 1 to December 18, Canton’s out-of-district placements grew …

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Posted by Mike Berger on Feb 23 2018. Filed under News, Schools. Both comments and pings are currently closed.