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Interim finance director: district projects $193,835 deficit, awaits ECR and supplemental funds
Summary
Interim finance director Paul Hendrickson reported a May 18 projection showing a $193,835 fiscal-year deficit; he said a pending excess cost reimbursement (ECR) of $137,791 and a state supplemental $413,666 to Ellington are not yet reflected and could materially reduce the projected deficit.
Paul Hendrickson, the district’s interim director of finance and operations, told the board that as of May 18 the district projects a $193,835 deficit for the fiscal year. "As of May 18 financials, we are projecting $193,835 deficit at the end of the year," Hendrickson said.
Hendrickson explained that an additional excess cost reimbursement (ECR) payment — typically the remaining 25% of a year’s ECR calculation for special‑education costs — is expected but not yet accounted for. He said the expected ECR would be about $137,791 and that if applied to the current projection the deficit would shrink to roughly $55,000. He also noted a recently passed state supplemental educational cost sharing allocation that totals $413,666 for Ellington; Hendrickson said it is “yet to be determined how that will be expended.”
Hendrickson flagged several drivers of the projected shortfall, including overages in noncertified substitutes tied to higher leave usage and expanded FMLA allowances; he said he will research substitute counts and leave data. He also described a larger nonlapsing account balance and a legislative change allowing the district to carry forward 2% of any surplus for future educational uses.
Board members asked whether electricity encumbrance numbers are reliable and how rate changes from providers such as Eversource or Connecticut Water would affect the district. Hendrickson said he will review the encumbrance details and split bills between delivery and service to clarify the district’s exposure.
Hendrickson’s report is nominally a projection and he said the district will not finalize budget adjustments until expected reimbursements are in hand. Board members requested follow‑up details on encumbrance figures and the timing of ECR and supplemental receipts.
