Select Board approves $493,953 reserve fund transfer to close Brookline Public Schools FY24 shortfall

Deputy Superintendent Susan, joined by Finance Director Diane Johnson, told the Select Board on July 9 that the School Department ended FY24 roughly $493,953 over what its appropriation would tolerate and asked the board to approve a reserve fund transfer to close the gap.

The board heard that two main drivers produced the shortfall: special‑education transportation overruns (about $1.6 million) and higher costs inside salary lines—particularly paraprofessional staffing—partially offset by unspent or encumbered funds elsewhere. Diane Johnson said the school team had reviewed encumbrances, deferred nonessential purchases and tightened projections but still faced a shortfall. “As we close out the year we are $493,500 short of what our appropriation will tolerate,” Johnson said.

Why it matters: approving the reserve fund transfer lets the schools avoid recording a prior‑year adjustment in municipal books and gives the district time to implement improved controls. Town finance staff said the transfer should be approved before the fiscal‑year close to avoid an auditor‑level prior‑year adjustment.

The discussion focused on root causes and steps to prevent recurrence. School staff described near‑term and structural responses: instituting formal position control to match chairs (budgeted positions) to bodies (filled posts); more granular tracking of additional compensation; stricter purchase‑order management and earlier contract oversight; and closer reconciliation of special‑revenue accounts, including circuit‑breaker education reimbursements. Charlie Young, assistant town administrator for finance, explained the procedural timing: because FY24 books were still open, the vote now would resolve the deficit inside FY24 rather than force a prior‑year audit adjustment.

The board debated alternatives, including using circuit‑breaker funds set aside for FY25; staff cautioned that tapping those receipts would create a starting deficit for FY25. Several board members pressed for a follow‑up timeline and asked staff to present an updated long‑range fiscal picture in the coming months. Advisory had recommended the transfer earlier in the day.

The outcome: the Select Board voted to approve the reserve fund transfer of $493,953 to close FY24. The board also asked the School Department and town finance staff to report back with a specific timetable for implementing position control and enhanced purchase‑order oversight and to show the effect of the transfer on the town‑school split when FY26 projections are prepared.

Next steps: school and town staff will document the process changes (position control, purchase‑order management and contract oversight) and return with an FY26 impact assessment and multi‑year projections.