Connetquot board hears fiscal‑stress briefing as reserves and short‑term borrowing tick up

Connetquot Central School District Assistant Superintendent for Business Bob Hauser told the Board of Education that several state fiscal‑stress indicators are moving in a direction the district should monitor. Hauser highlighted increases in operating‑deficit and short‑term cash‑flow debt scores and described the district’s reliance on short‑term borrowing each year to bridge the July–December tax receivable gap.

"This one's going to be on fiscal stress," Hauser said as he opened the budget presentation, and he explained the New York State Comptroller uses six indicators — including unassigned fund balance, operating deficits and short‑term cash‑flow debt — to rate a district’s vulnerability. He said the district’s operating‑deficit score rose from 0 in 2023 and 2024 to 6.67 in 2025, and short‑term cash‑flow debt rose from 0 to 3.33 and then to 10 over the same period.

Hauser described the district’s tax‑anticipation practice: because the school year starts July 1 but most property‑tax receipts arrive late in the year, the district borrows on tax anticipation notes and repays them after receipts arrive. "We borrow money in anticipation of those taxes coming in," he said, noting historical borrowing of about $40 million (2023), $42,000,500 (2024) and $47,000,000 (most recent year) and warning that the Comptroller is monitoring that trend.

Board members pressed Hauser for detail on fund balances and the district’s reserves. Hauser said the district maintains multiple reserves (workers’ comp; ERS/TERS; employee benefit accrued liability; capital reserves; and an unassigned fund balance the state allows up to 4%). The unassigned balance has dipped to roughly 3.8%; Hauser said administrators hope to return it to 4% through spending controls, including a cut‑off for new purchase orders on Feb. 13.

State aid and the tax cap were a second focus. Hauser said the governor’s executive budget currently proposes a 1% foundation‑aid increase for many districts, which he and others warned may not match inflation or rising costs such as health‑insurance. He also reviewed allowable levy‑growth factors and described common capital exclusions (voter‑approved debt) that raise districts’ effective levy capacity.

On aid categories and reimbursables, Hauser told the board the district subscribes to 181 BOCES services with a total value of $19,638,000 on the December 2025 invoice and agreed to provide a line‑by‑line description of those subscriptions. He also explained that some aid categories (for example, excess cost aid for students with disabilities) can be undercounted if the state database does not yet reflect recent expenditures; he said a February update to state data may increase reimbursements.

Transportation and overtime drew sustained questioning. Board members sought an explanation for a roughly $180,000 overtime projection for bus drivers; Hauser said overtime accrues when daily guarantees (6/7/8 hours) are exceeded because of trips, late runs, or absenteeism and that the district uses an "emergency wheel" to assign available work, which can push some drivers over daily hour thresholds.

The board approved several personnel and consent‑agenda items after discussion and tabling a small number of instructional stipends for clarification. Multiple trustees asked for follow‑up documents on BOCES line items, the scholarship/BOCES invoice (about $30,000 cited in discussion), and a breakdown of transportation overtime and security expenses. Hauser committed to providing the requested documentation to the board.

Next steps: district staff will return with the requested line‑item breakdowns and clarifications ahead of the next budget meeting; the board scheduled additional budget discussion for the Feb. 10 meeting, which will include staffing, programs and enrollment.