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Board hears budget and benefits update as outplacement and custodial costs rise
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Summary
Finance staff told the board the district has spent $85,930,904 (92.3% of budget) through March 31 and flagged over-expenditure pressures (outplacements, transportation, custodial RFP) and medical-benefits reserves of about $22.9 million; members pressed for clarity on fuel locks and custodial cost drivers.
The Cheshire Board of Education on Wednesday received a detailed financial update that underscored pressures in several budget lines and highlighted areas the district is watching as it finalizes next year’s budget.
Emily Taylor, presenting the financial report, told the board that as of March 31 the district had spent $85,930,904, which she said represented about 92.3% of the budget. Taylor flagged variances in major categories, including tuition for outplaced students, student transportation, textbook/software purchases and capital equipment, and said some over-expenditures are being offset by under-expenditures elsewhere.
Taylor said the district maintains a 60% hold on certain non-salary transportation accounts and noted the projected year-end balance for tuition outplacements has shifted from a projected negative $37,000 to about negative $526,000 this year — a change she tied to rising costs.
She also updated the board on energy procurement: a heating-oil price lock tied to an anticipated 35,000 gallons has expired and the district is paying market rates for heating oil; other price locks for diesel and unleaded gasoline (50,000 gallons each) and a supply rate for electricity (about $0.10 per kilowatt) remain in place through specified dates in 2026. Taylor said the district will meet with an energy consultant to evaluate options.
On custodial services, Taylor said the district issued an RFP because the current contract had to be rebid after the district added roughly 72,000 square feet of interior space. The current contract is $859,000; the budgeted figure for next year is $1,030,000, and initial vendor proposals ran higher than budget. Three vendors (ANA, SJI, SMG) met RFP criteria and the facilities director is working to refine scope to get closer to budgeted amounts.
Taylor also reviewed medical benefits: a $50,958,339 fund budget with monthly contributions of about $1.2 million, a reserve balance of about $22.9 million (about 2.31 claim months, above a two-month target), and higher claims in March compared with the prior year; she said stop-loss reimbursements and Rx rebates helped offset some increases. The board was told the district has budgeted about a 6.97% claims funding rate and stop-loss coverage budgeted at 16.1%. An RFP review for stop-loss options was scheduled with the broker on April 24.
Board members asked for clarifications on whether the 35,000-gallon number referred to heating or vehicle fuel (the presenter confirmed it refers to heating oil across campuses) and probed drivers of the custodial-cost increases; Taylor pointed to the RFP’s “platinum” service model and unionized labor as major cost drivers.
Members urged careful scoping of the custodial RFP to bring costs closer to budget and discussed the implications of rising outplacement tuition on the district’s fiscal picture. The superintendent and board noted the town council is still deliberating and that further budget decisions will be made in the coming weeks.
