School District reports $665K surplus despite projected budget overruns in multiple areas

The Westerly School Committee meeting on May 7, 2025, focused on the financial report for the year-to-date ending March 31, 2025, highlighting both budget surpluses and projected deficits in various areas.

The financial report indicated no changes in revenue projections, with ongoing challenges in receiving Career and Technical Education (CTE) tuitions from other districts. However, the district anticipates recognizing additional revenue from the ESSER 3 indirect cost reimbursement this year. Expenditures are projected to be under budget by $275,000, primarily due to vacancies in transportation, teaching, and administrative support staff, although these savings are somewhat offset by costs for substitutes and retirements.

Employee benefits are also expected to be under budget by $651,000. Conversely, purchased services are projected to exceed the budget by $128,000, driven by higher out-of-district transportation costs and increased liability insurance premiums. Notably, out-of-district tuitions for charter and CTE schools are under budget by $260,000 and $204,000, respectively. Legal expenses are projected to be over budget, and miscellaneous costs are expected to exceed the budget by $147,000 due to settlement costs.

The report concluded with a projected surplus of $665,778, which could decrease to $414,083 if budget transfers 1 through 6 are approved. These transfers, totaling $251,695, are primarily sourced from salary and fringe savings and include funding for various technology upgrades and essential transportation vehicle replacements.

The committee discussed the need for two minivans, both from 2017 with high mileage and significant wear, to be replaced this year, despite not being included in the scheduled capital requests. The meeting also addressed questions regarding the projected over-budget miscellaneous costs related to settlements.

Overall, the financial discussions underscored the district's ongoing fiscal management challenges while also highlighting areas of potential savings and necessary expenditures moving forward.