Canton school business office reports payroll cleanup, expects to use special education reserve to close year
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Summary
Business office reported payroll and accounts-payable cleanups that recovered roughly $1.2 million in encumbrances, leaving the operating budget about $1.7 million overspent before expected revolving revenue and reserves; the committee approved the Q3 report 4-0.
The Canton School Committee accepted the district's Q3 financial report and related materials on May 1, approving the report by a 4-0 vote after a presentation from the district's business office.
The district's business manager told the committee the office completed payroll and accounts-payable cleanups that identified roughly $750,000 in overencumbered payroll and about $450,000 in duplicate payroll encumbrances that were released. The presenter said those efforts and other adjustments reduced but did not eliminate an operating deficit; at the time of the presentation the operating budget was "currently overspent by about 1.7" million.
The presenter said there are roughly $230,000 currently available across revolving accounts that can be used and the district expects additional revenues (mainly spring athletics fees, student services receipts and transportation/pre-K receipts) that the business office conservatively estimates could add about $350,000. Taken together, staff said they are targeting use of about $1.3 million to $1.4 million of the district's special education reserve to close the fiscal year.
Committee members asked for clarification on which revolving accounts were being used and whether those accounts would be depleted. The presenter said the revolving accounts tapped so far include athletics, pre-K tuition, circuit breaker (state reimbursement for special education), transportation and certain rental accounts; some of those accounts are required to be spent to zero per Massachusetts law at fiscal year end, while others will retain a cushion to cover start-of-year expenses (for example, bus-driver payroll and pre-K start-up costs).
On the special education reserve, the presenter reviewed recent appropriations: an appropriation in May 2024 and an additional appropriation of $1.6 million at a special town meeting in November 2024. The presenter said the district currently holds the November appropriation balance and expects the town meeting process in May to consider another $1.0 million appropriation for next year; the business office intends to carry forward some remainder to support next year's costs.
The committee voted to accept the Q3 financial report after discussion; a motion to approve was moved and seconded and the vote was recorded 4-0 in favor.
