Groton finance committee recommends a FY25 'true up' and using non‑lapsing funds to cover known overruns

Director of Finance Rita Parsiak told the Groton School District Finance & Facilities Committee at a March 18 special meeting that the first agenda item was a FY25 "reallocation" — a prior‑year true up of overages and underages — and that the draft transfer runs roughly "like, $19,000,000." Parsiak said the transfer will be posted so the district has a "true picture of last year's financials."

The committee asked Parsiak to prepare a concise, pivot‑style summary by major accounts for the full board so members can see at a glance how much of the $19 million is benefit‑related and how much is tied to other object codes. "I attached the balance, which is the $663,005.17," Parsiak said when reviewing projected non‑lapsing funds that could be carried into the current fiscal year.

Why it matters: the transfer reconciles prior‑year spending with state reporting and determines how much non‑lapsing money is available for current needs. Committee members pressed staff to move amounts that are "certain" onto the non‑lapsing list now — items such as magnet school tuition, known food‑service debt and bus fuel — and to be conservative about large, uncertain lines such as total pupil transportation.

Committee discussion centered on three practical points. First, much of the $19 million reflects benefits moved between functions rather than miscategorized transactions; Parsiak said about $7 million had been in an extended transfer/benefit account. Second, she acknowledged an omission in the draft: "I forgot to put on here the food service debt, which is about $20,000," and said she would add it. Third, the group debated transportation costs for athletics and field trips, which are hard to predict because extra runs are billed hourly; one committee member noted a prior projection that pupil transportation could be "328,000 over budget," and members discussed allocating a conservative placeholder (for example, $100,000–$200,000) if exact totals are not yet available.

On use of non‑lapsing funds, members cautioned that some categories (notably special education) must be handled carefully because drawing them down can affect excess‑cost grant calculations; Parsiak said she separated special‑education student services and homeless transportation in the draft so the committee can see those costs transparently. She also described ongoing efforts to encumber more salary‑related items (stipends, coaches) through payroll to reduce surprise year‑end charges.

Several members urged staff to add short explanatory notes on large line items so board members reviewing the packet can quickly see what each encumbrance covers. Parsiak agreed to prepare the summary page and a slightly different document that lists the "definite" transfers that the committee can vote to move now, leaving uncertain totals to be refined before final posting. "So I can move the expenses... into the non‑lapsing," she said when describing the operational next step.

No final vote on the full FY25 reallocation was taken at the special committee meeting; members asked that the summary and the set of definite transfers be included in the board packet ahead of the full board meeting on Monday for formal action. The committee adjourned after the agenda was completed.