Finance committee reviews January financial report, recommends transfers to cover higher energy and benefit costs

The finance committee of the Darien School District met Feb. 26, 2026, to review the district’s financial position through January and consider several recommended transfers to address unanticipated costs. Presenter delivered the report and said the district was "forecasting a positive balance of $266,750," while noting that was a decrease from the December report.

The presentation identified early retirement incentives as a major drawing of funds. "The board approved early retirement incentives, is drawing down 250,000," the Presenter said, and recommended using transfers to cover that and other shortfalls. The Presenter also flagged unusually cold winter weather and recent HVAC behavior at “three HHR schools” as drivers of elevated energy costs: "Electricity is trending higher by a $132,001.20 ... at those 3 schools primarily." The Presenter added that heat-related costs were forecasted in a deficit of $24,000.

The Presenter outlined program-level variances and one-time credits that affected the forecast: $76,000 in out-of-district tuition savings from settlements arriving below expectation; a $14,704 long-term disability credit; and insurance-related census changes producing about $80,000 in positive variance. The Presenter said special education RCs were forecasted at a positive $613,116 while general education RCs were forecasted at a deficit of $346,003.65.

On state reimbursement, the Presenter said excess-cost reimbursement came in higher than the budget assumption: the district had assumed a 65% rate for the current year but the actual rate was "67.93," which, together with a first installment payment of $1,700,000 received the previous day, improved the forecast.

During follow-up questions, the Chair asked whether the proposed $250,000 early-retirement transfer was in addition to an earlier $200,000 approval; the Presenter confirmed the $250,000 is the balance of the transfer. The Chair also asked about why long-term substitute pay is budgeted through RC18; the Presenter explained that RC18 uses work codes to track where subs are assigned while centralizing long-term substitute personnel costs.

As a result of the variances, the Presenter recommended four transfers for the board’s consideration: $450,000 to benefits (sourced from out-of-district tuition savings, turnover savings, the long-term disability credit, census changes, propane credit and salary-schedule savings); $5,000 to consultant services for a midyear board retreat facilitator; $132,001.19 to cover electric costs at the three affected HHR schools; and $24,000 to cover heat-related costs. Committee members indicated they did not see issues with the transfers; the transcript does not record a formal committee vote or approval.

Chair opened the public comment period and reported there were no members of the public in attendance. The Chair then asked for a motion to adjourn and called for Phil and Craig to move it; the transcript ends without recording a mover, second or vote.

The committee’s next procedural step, as referenced in the meeting, would be to follow usual census procedures if the transfers are to be passed on for board approval.