Westborough officials propose $150,000 special‑education reserve to smooth volatile costs
Summary
Superintendent recommended a town meeting article to establish a joint school/select board special‑education reserve starting at $150,000, with a suggested ongoing $50,000 annual contribution, to reduce the need for emergency appropriations when unanticipated high special‑education costs arise.
The Westborough School Committee heard a detailed presentation on Sept. 24 proposing a special‑education reserve fund to cushion the district from volatile, high‑cost special‑education expenditures.
Superintendent Allison explained the reserve would be dedicated exclusively to unanticipated special‑education costs and could be accessed only by joint vote of the school committee and the select board. She described how special‑education expenses — particularly out‑of‑district tuitions and transportation — can create mid‑year budget shortfalls that have, in past years, required emergency appropriations.
Allison cited typical out‑of‑district tuition ranges "at the very lowest, around $70,000 a year for the collaboratives, and ... up to, almost a quarter million dollars per year for some of the residential placements." She also described the state reimbursement program ("circuit breaker"), which reimburses 75% of eligible costs above a district threshold but operates as a reimbursement in arrears and therefore cannot fully prevent cash‑flow problems.
As a practical proposal the administration suggested an initial $150,000 deposit into a reserve (funding source suggested: Chapter 78 surplus received this year), followed by an ongoing target of $50,000 per year into the fund until it reaches about $1 million. Allison said the district's Chapter‑78 allocation this year came in about $380,000 above what was budgeted, presenting an opportunity to set aside an initial amount.
Committee members and the public discussed governance: establishing the reserve requires a town‑meeting vote (two‑thirds vote was noted during discussion) to create the fund and any transfer into the fund also requires town‑meeting action; withdrawals would require joint vote of the school committee and select board. No town‑meeting article was voted at the Sept. 24 meeting; the administration asked for feedback and indicated plans to present the proposal to advisory and finance committees ahead of a fall town meeting request.
Why it matters: Special‑education placements can create multi‑hundred‑thousand‑dollar budget swings. The reserve is designed to reduce the likelihood of emergency appropriations, preserve program stability and limit short‑term tax‑rate impacts.
