The Danbury School District finance committee reviewed October financial statements on Nov. 19 and heard that general fund expenses for the month totaled $19,400,000, up from $13,200,000 for the same period last year, finance staff reported.

Finance staff said much of the month-to-month increase is driven by pending benefit adjustments that must be booked, and by October containing three full pay periods this year versus two last year. They reported fiscal-year-to-date general fund expenses of $38,500,000 and $100,900,000 in encumbrances against a $172,000,000 annual general-fund budget, leaving a $33,000,000 fund balance, or roughly 19% of the budget.

Committee members pressed staff to clarify large variances that reflect reclassifications rather than permanent overspending. "A significant portion of the difference is due to the pending adjustment to benefits," Speaker 2 said, describing entries that will be booked for October actuals and for November.

Much of the reclassification work stems from recently approved grants. The Alliance grant increased the district's programmed funds by about $9,000,000 this year, Speaker 5 (who identified herself as Carrie) told the committee, which required moving a number of staff costs from the general fund into the grant. "When Alliance gets programmed ... a good preponderance of our kindergarten teachers for full day K, bilingual, TESOL teachers ... were slid into those slots," she said, describing categories that now show $24,000,000 in personnel services and about $7,400,000 in employee benefits coded to the Alliance account.

ARPA funds also include one-time staffing and technology lines that must be spent as written, Carrie said. "So the ARPA funds ... there are restrictions. There are definitely restrictions," she said, adding the district must spend ARPA dollars in accordance with the application and timeline.

Committee members expressed concern about the budget risk of charging ongoing salaries to one-time funds. Carrie warned that sliding staff into one-time grants can free up general-fund dollars short term but create future pressure when the grants expire. "That money, once those staff are moved over to that grant ... then is freed up in the general fund," she said, but added officials must avoid hiring permanent staff funded entirely by one-time dollars.

Members asked for more targeted reporting. The chair requested a supplemental accounting within the next two reporting cycles that breaks out ARPA and Alliance balances by category (salary, transportation, supplies) so the board can see how one-time money is being used and where recurring obligations may fall to the general fund.

Committee members also flagged special education placements and continued use of agency staff as ongoing cost risks, noting an example from a prior year that required absorbing a placement costing roughly $550,000.

Finance staff said they are reclassifying miscoded items and adjusting purchase orders and that additional encumbrances (for example, transportation invoices) will be entered through the remainder of the fiscal year. They also noted the state now requires staff funded through grants to be designated by school location, which changes how grant lines appear by school but does not imply unequal allocation of resources.

The committee did not adopt any new policy at the meeting; members agreed to return with clearer schedules and supplemental reports so the board can evaluate longer-term budget impacts as one-time grant funding sunsets.