Committee reviews FY26 outlook, special-education shortfall and revolving funds

The committee received a fiscal update on the FY25 budget and early FY26 signals on Feb. 18, including projections that the district’s special-education line will exceed its appropriation and reliance on circuit-breaker reimbursements to cover most of the gap.

John (district finance lead) reported a salary budget of $21,169,000 with current expenses and projected remainder leaving the district on track to finish close to budget. The largest pressure remains special education: the department has a budget near $3,000,000 and estimated expenses approaching $4,800,000, for a projected deficit of roughly $1.8 million. John said the district expects to apply fiscal-year-24 circuit-breaker reserve funds, the fiscal-year-25 circuit-breaker payment and an estimated extraordinary circuit-breaker filing (he estimated roughly $611,000) so that the remaining deficit would be reduced to a small balance. He cautioned that the district maintains a budget freeze and is scrutinizing new purchases.

John also reviewed revolving fund balances. The athletic fund showed a short-term deficit (expected to be cleared by inter-municipal reimbursement for co-op sports) and the school building rental account showed a negative balance that will be offset by upcoming revenues. The committee noted a late-state state-aid process in which the governor’s initial chapter-70 number can change later in the budget cycle; John said the district’s draft chapter-70 allocation showed a modest increase of about $147,000, subject to final appropriation.

Committee members asked clarifying questions about timing and certification of budget numbers; the town’s budget certification was targeted for March 18 in the packet.