The School Committee unanimously approved a request Dec. 8 to establish a capital reserve account for the South Shore Educational Collaborative (SSEC) that allows the collaborative to retain and save budget surpluses for future facility and vehicle needs.
Mike Lowe, representing the collaborative, told the committee that DESE guidance encourages member districts to authorize reserve funds so collaboratives can save surplus tuition revenue for capital projects. Lowe said the fund would be fed only from budget surpluses — not from tuition increases — and described expected uses: maintenance or improvements to the Hingham facility at 75 Abington Street, acquiring placement property, or replacing vehicles for the collaborative’s van pool. He added that the collaborative’s lease requires it to perform most upkeep.
Committee members questioned frequency of surpluses and possible impacts on member districts’ tuition. Lowe said surpluses have occurred in some recent years, that the account would not be used to increase tuition, and that the collaborative could, in some years, return money to member districts through its budget process. The proposal sets a maximum cumulative balance of $4,000,000; Lowe said that figure reflects the collaborative’s enrollment and facility size and is higher than other collaboratives because SSEC’s enrollment is larger.
The committee moved and seconded the creation of the capital reserve account and voted aye; the motion passed unanimously.