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Resident urges Glocester council to probe school department fund-balance spending
Summary
A resident told the council that the school department has been drawing on fund balances to cover operating deficits without voter approval, which he said violates the charter and creates structural budget problems.
At the Feb. 6 Glocester Town Council meeting, resident Walter Steer urged the council to examine the school department’s use of fund balances to cover operating deficits. Steer said the school department has used reserve funds accumulated from prior health-care savings and other balances to cover deficits in recent years without voter approval.
Steer said a surplus of about $1.3 million from a past change in health-care providers was intended to be held for potential future health-cost spikes and that 20% of the surplus was earmarked for teachers’ contributions. "Well, a million of that money is all gone except for the teacher's part," Steer said, arguing the funds were used to cover deficits without the required approval of town voters and the town representative as set out in the charter.
Steer referenced the charter’s restriction that remaining amounts in unappropriated fund balance may not be used to cover overspending without approval by the taxpayers and the town representative. He said the practice has created a structural deficit and urged the council to investigate the business office, financial controls, and past decisions.
Councilors did not announce actions at the meeting; Steer said he expected new council members to address the issue and suggested the town solicitor review compliance with the charter.
