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Board discusses budget closeout, transportation encumbrances and medical benefits reserves
Summary
Finance staff told the Cheshire Board of Education they expect to close the 2024–25 year with a $250,000 surplus carryover while managing late-June encumbrances; medical benefit claims showed a spike in April but stop-loss reimbursements are expected to raise reserves.
District finance staff told the Cheshire Board of Education they expect to close the 2024–25 fiscal year with a planned $250,000 surplus to carry into next year while managing a substantial set of late-year purchase requests and payrolls.
Finance director Marciani (staff) said the district’s approved 2024–25 budget is $89,542,006 and that through May 30 the district had expended and encumbered most of the budget. He told the board there are roughly $876,000 in pending requests from principals and maintenance that staff will attempt to prioritize; “we probably be able to approve half of that and close out the year with the $250,000 that we’re committed to,” he told the board.
Board members asked about a large encumbrance on pupil transportation; staff explained timing and open purchase orders drive the apparent balance and that final closeout entries will reduce the number. Staff estimated the transportation line may show about a $175,000 overage after adjusting encumbrances and timing differences.
On personnel costs, board members noted higher substitute-service spending tied to a number of staff out on disability; staff confirmed the district trended below budget in teacher salary lines while substitutes rose to cover absences.
On medical benefits, staff reported April claims at approximately $1.8 million, a follow-up to March claims near $660,000. The reserve balance stands a little over $2 million (about 1.7 months of claims). Stop-loss reimbursements year to date were $389,000 and staff expected at least another ~$100,000 in reimbursement that will increase the reserve balance.
Separately, Superintendent Solon informed the board that a recently adopted state two-year budget restored an ECS (Education Cost Sharing) reduction the district had previously budgeted: Cheshire’s share of ECS reductions ($254,717) was reinstated and the town’s overall variance was roughly $383,967 favorable to previously adopted expectations.
No formal vote was taken on closeout actions; staff said they will return with final numbers at the June 30 meeting.
Less critical: staff noted last payroll runs on June 20 for many employees and that summer purchasing and maintenance remain active.
