Carmel board retains $5.67M fund balance, tables budget transfers for further review

The Carmel Central School District Board voted June 4 to retain $5,669,358 of the district's 2023-24 year-end fund balance as undesignated/unassigned and to delay allocating fund balance toward the 2024-25 budget. Trustees said preserving the district's reserves supports fiscal stability and avoids drawing down savings for recurring costs.

Interim Superintendent Justin McGrath explained that unencumbered funds flow into various fund balances and that approximately 4% is held as unallocated fund balance by policy, with the remainder subject to board decision in July. Public commenters questioned how a reported $19.4 million unencumbered figure related to recent service reductions such as outsourcing nursing.

The board also discussed a proposed list of budget transfers totaling $2,016,135 to correct account coding and reflect end-of-year true-ups. Trustees asked for additional context on large salary transfers, vacancies that generated substitute costs, and line-item usage (budgeted versus spent). With the assistant superintendent for business not present and several requests for more detailed backup, trustees voted to table the budget transfers and to take them up at the June 18 meeting after administration provides the requested line-item history, RFP materials where relevant, and explanations for large movements (for example, transfers related to substitute pay, bus lease coding, and chaperone costs).

Trustees who spoke said the board's earlier decision not to appropriate fund balance for the 2024-25 budget was fiscally prudent; others emphasized the public's need for clearer, consistent information about transfers and the budget process.