Board committee reviews budget projections; approves motion to transfer unencumbered balance into 2% nonlapsing fund

The Wallingford Board of Education operations committee on Monday reviewed the district’s April financial projection and approved a motion authorizing the board to transfer this year’s unencumbered fund balance into the district’s 2% nonlapsing fund under Section 10-248a of the General Statutes.

Finance staff reported a projected general fund surplus of about $370,000 for the year, a net decrease of roughly $14,000 from the prior month. The finance presentation highlighted account movements: a roughly $15,000 increase in the special education deficit offset by a projected $445,000 excess-cost grant surplus, a transportation increase of about $45,000 tied to run adjustments, and a $130,000 net increase in salaries largely explained by unpaid leaves, vacancy changes and a reduction of one student day.

“We will get our regular payments in May, and then we’ll get the final payment in June,” the finance presenter said about state excess-cost payments, adding the June payment reflects additional state money the district received earlier this year.

Board members asked for clarifications about contingency and earmarked funds. A board member said the contingency line contains an amount set aside primarily to cover retroactive labor agreements and other one-time commitments; the finance presenter said the contingency for next year was about $479,100 and estimated that figure was roughly 0.39% of a budget the presenter cited as about $122 million. The committee was told that some funds in the district’s two-percent account are earmarked for capital projects (for example, computer replacements and field projects) and cannot be used to cover recurring salaries.

The committee approved a motion to authorize the board to deposit up to the maximum amount permitted by Conn. Gen. Stat. Sec. 10-248a from the current-year unencumbered fund balance into the 2% nonlapsing fund for future educational purposes. The committee chair moved the motion; a second was recorded but the seconder’s name was not given. The motion carried on voice vote.

Finance staff also described other line items: a projected $50,000 plant maintenance deficit driven by elevator and concrete/safety repairs, a $27,000 increase in utilities net (gas and electricity showing surplus while water/sewer showed a deficit), and a decision to order $140,000 worth of Chromebooks to lock in pricing. The presenter said unemployment costs showed a one-time $33,000 increase and Medicare projections showed a $59,000 surplus tied to salary variances.

The committee directed staff to finalize year-end numbers and return with a proposed allocation of any final unencumbered balance to the 2% fund once the year is closed out.