Jeff Frisco of the school business office explained the statutory path and practical steps for creating a Special Education Reserve Fund under Massachusetts General Laws chapter 40, section 13E, telling the committee such a fund allows "funds to be used without further appropriation for unanticipated, unbudgeted special education costs out of district tuition and transportation." He said the statute caps the fund balance at 2% of annual net school spending, which would be about $1,200,000 for Walpole.

Frisco walked the committee through creation steps (school committee vote, town meeting vote to establish the fund) and how funds might be added (annual appropriation or transfer from free cash) and used (committee vote plus select board approval required to withdraw). He noted the treasurer holds and invests the account and interest accrues to the fund balance.

Committee members engaged in a lengthy exchange about timing and funding tradeoffs. Nancy, a committee member, urged caution and said the district should examine whether recurring revenue that appears in the town’s free cash is already allocated: "Decrease means over $3,000,000 worth of money that didn't come to the school district," she said, urging a broader conversation about operating budget trends before committing to a reserve.

Others argued a reserve could act as a release valve for sudden special education costs and cited past years when the district had to wait months for additional funds. Committee members discussed whether establishing the reserve would require giving up or limiting other carryover options, such as the circuit breaker carryover account, and noted examples from other towns where setting up a reserve required agreements about carryover use.

After discussion, a committee member moved to table the request to establish the Special Education Reserve until the fall meeting when capital requests are taken up. The motion was seconded and the committee voted to table the item; no funding decision was made and no town‑meeting article was filed at this meeting.

Next steps outlined in discussion included preparing a set of questions for the town administrator and select board, exploring funding sources in the event of free‑cash windfalls, and revisiting the issue in the fall when the committee addresses capital requests.