Hartford committee backs end‑of‑year transfers, recommends up to $12.6M for Board of Education shortfall

The Operations Management, Budget and Government Accountability Committee voted Oct. 21 to send the mayor’s resolution to the full Hartford City Council with a favorable recommendation to make end‑of‑year budget transfers, including funds to cover fire department overtime, benefit overages and up to $12.6 million to address a projected Board of Education deficit.

Committee chair Councilman Amilka Hernandez said city financial staff would present the details and answer questions. City finance staff reported a projected favorable preliminary fiscal‑year 2025 variance of about $24.6 million, driven by roughly $22.3 million in higher revenues (more than half from property taxes) and about $2.3 million in underspending on the expenditure side.

The committee was told that $23.8 million of assigned fund balance from the previous year had already been set aside for three purposes: $11.5 million for the Neighborhood Community Investment Fund for commercial corridors, $5 million for a youth fund and $7.3 million to offset ongoing tax appeals. After accounting for those uses, staff projected a $870,000 increase in total fund balance at year end.

Julian, a city presenter on the resolution, said the transfers being recommended are intended to address specific overages: $1.2 million for fire overtime and an amount to cover benefit overages across health, retirement payouts and related accounts. "And so the resolution increases funding for education benefits to offset the projected overage in education," Julian said while summarizing the draft resolution.

Caelin Richard, chief financial officer for the Hartford Board of Education, told the committee the $12.6 million figure in the draft resolution represented a worst‑case estimate prepared several weeks earlier and that the gap was narrowing. "This number is the worst case scenario. It won't get any worse," Richard said, adding that the likely final Board of Education gap is nearer to $8.6 million as records are finalized and pending reimbursements are received.

Committee members pressed staff on whether reimbursements or other changes could further reduce the education request and on mitigation steps for recurring pressures. Richard described mitigation already taken this year—spending down grant funds and reducing non‑salary expenses—and said the district is improving budget monitoring. She also said the district is exploring structural changes and in‑house special‑education programs to reduce tuition paid outside the district.

Committee members and city finance staff discussed how assigned and unassigned fund balance are reported and moved. City finance staff explained that the $23.8 million use of assigned fund balance increased budgeted expenditures and that, with the projected surplus, an increase in unassigned fund balance is expected even as assigned balances fall.

After discussion, a committee member moved and the item was seconded; the committee voted in favor of sending the resolution to council with a favorable recommendation.

The resolution language authorizes transfers up to the amounts listed (including the up‑to $12.6 million education appropriation) and staff emphasized any transfer for education would be limited to the amount needed to eliminate the projected Board deficit and could be less than the maximum shown.

The resolution will go to the full Council for final action at the next Council meeting.