Select Board OK’s school budget fix, avoids special TM

The Canton Select Board, School Committee, Finance Director, and Finance Committee chair agreed Tuesday night on a plan to close a $1.65 million school budget shortfall caused by COVID-19 spending.

Under the approved plan, backed by a 4-0 vote of the School Committee at its October 1 meeting and a subsequent 4-0 vote by the Select Board, there would not be a need to call a special town meeting. The only remaining hurdle now is an affirmative vote from the FinCom to approve a $600,000 transfer from its reserve account. The rest of the funding would come from a $550,000 special education reserve fund transfer and a loan from various school revolving accounts (preschool, athletics, building funds). The money borrowed from the revolving accounts would then be replenished through an appropriation at the May 2021 annual town meeting.

Finance Director Randy Scollins said the town’s special financial reserves account, which has been instrumental in Canton retaining its AAA bond rating, would not be affected by Tuesday’s decision.

FinCom Chair Tim McKenna said he realizes that FinCom members may have some anxieties about using up most of its own reserve fund. Last year the account was not used and the money was sent to the general treasury and used to bolster the town’s free cash reserve. Scollins said if the need arises, there would be other funding sources through transfers from other departments, savings from the town’s health insurance program, and an expected increase of $870,000 in state aid since the town was very conservative in its revenue projections.

“[Scollins] will be called upon to explain the other options and I don’t think there will be a problem,” said McKenna.

Town Administrator Charlie Aspinwall did warn the Select Board Tuesday night of two impending and unanticipated future expenses: additional staffing and COVID-related cleaning expenses for the soon-to-be reopened Metropolis Skating Rink.

Cindy Thomas, FinCom member and former School Committee chair, warned all town departments to monitor overtime costs for the remainder of the fiscal year ending June 30. She also asked School Business Administrator Barry Nectow to effectively communicate with Scollins about any rising special education costs.

The plan approved on Tuesday night was one of two options put forward by Nectow and Scollins for addressing the school budget shortfall. The other option had called for a FinCom reserve transfer of $250,000; a special education reserve transfer of $250,000; use of $583,000 in additional state aid; and a free cash transfer of $567,000, which would have required the Select Board to call a special town meeting.

Scollins said he favored the option that was approved Tuesday night because it allowed town officials to use existing funds and avoid the added costs of holding a special town meeting. Also, he said the exact amount of state aid is still not known as the legislature has yet to finalize the full FY21 state budget.

Nectow, who had originally projected a shortfall of nearly $2 million, was able to narrow it to $1.65 million after reviewing all projected expenses and state and federal grant opportunities. He also believes they can save $300,000 in the schools’ operating budget and anticipates future savings in special education tuition and transportation costs.

In other news from Tuesday night’s meeting, the Select Board approved plans to submit a preliminary application to the Community Preservation Committee to fund repairs to the exterior of Memorial Hall.

The board will hold its next regularly scheduled meeting on Tuesday, October 13, at 5:30 p.m. via Zoom.

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Posted by Mike Berger on Oct 9 2020. Filed under News, Town Government. Both comments and pings are currently closed.