The Scituate School Committee voted unanimously Jan. 5 to allow the South Shore Educational Collaborative to create a capital reserve account that will hold tuition-based surpluses for future capital projects.

Michael Loesch, executive director of the South Shore Educational Collaborative, told the committee the account would be funded only through tuition surpluses and would be subject to the collaborative’s regular budgetary and board-approval processes. "The purpose of the capital reserve fund is so that we're able to save funds from tuition," Loesch said, adding the collaborative aims to allocate roughly $200,000 to $400,000 per year in strong years and proposed a $4,000,000 maximum balance.

Loesch said the collaborative has about eight years remaining on its current lease and wants a dedicated vehicle to prepare for major projects such as a move to new space or building upgrades. He described the reserve as a safeguard so member districts would not be asked to make ad hoc contributions if the collaborative undertakes a large capital expense.

Committee members asked how excess funds are handled now; Loesch said surpluses currently remain in the collaborative’s general account and are used for operating costs, but the reserve would allow for interest growth and earmarking for capital needs. He also said DESE’s process for creating such an account requires approval by nine of the collaborative’s 12 member districts.

A committee member moved to approve creation of the capital reserve account at the South Shore Educational Collaborative; the motion was seconded and approved by voice vote.

Next steps: the collaborative will proceed with the member-district approval process and return to districts as required by DESE for any budgetary allocations into the account.