Middletown BOE sees small January surplus as city signals possible 5% cut; hiring freeze announced
Summary
At a board budget meeting, the finance director reported a modest January surplus and detailed one-time balances; board members were warned not to conflate the unexpended balance with recurring surplus. The board also approved a soft hiring freeze and set an April 2 purchase-order deadline.
The Middletown Board of Education’s budget committee reviewed financials through Jan. 23 on Tuesday, with Finance Director Natalie Forbes reporting a modest projected surplus and staff outlining short-term steps to protect the year-end budget.
Forbes told the committee that “budget expenditures for January show a modest surplus of $297,706 or 0.28% of the total budget of a $103,149,889,” and that the district projects a combined salary surplus of $366,690. She cautioned that the district’s unexpended balance — an amount she said stands at $396,451.93 — should not simply be lumped together with the month-to-month projected surplus because those funds historically cover unanticipated costs.
The conversation also referenced the city’s broader budget outlook. Dr. Adley summarized a recent meeting with the mayor and said “the mayor was talking about reducing by 5%,” a target the city’s departments had been considering. Board members pressed staff for clarity on how the district might absorb cuts without jeopardizing personnel or programs.
The committee discussed several cost drivers behind changes in line items. Forbes said the purchased-services deficit widened principally because of increased out-of-town special-education transportation and that two BCBA (behavior analyst) roles have been filled temporarily with contracted services after vacancies and an FMLA leave. She said the district will evaluate whether to hire salaried staff or continue contracting before the end of the fiscal year.
Board members requested additional detail on certain lines. Forbes agreed to provide a breakout for legal-services billing after the committee noted increases to line 53020; she explained the district had adjusted the appropriation to reflect actual spend and projected needs for the year. A board member also asked for a line-by-line explanation of subscriptions and licenses; Forbes said she did not see a change in the current report and will follow up.
Procedural steps intended to lock down the year-end picture were announced. Forbes said the district instituted a "soft freeze" on open positions so HR will notify Dr. Adley and leadership will review whether to advertise; she also set the last day for purchase orders as April 2 so encumbrances are known ahead of final budget adjustments in May.
Votes at a glance: the committee approved the minutes from the Dec. 15, 2025 meeting by voice and adjourned at the end of the session. (No other formal budget votes were recorded at this meeting.)
What’s next: staff will provide requested line-item detail (legal billing and subscription/licensing breakdowns) and meet with department heads to refine encumbrances before the April and May budget milestones.
