Brandywine financial report flags special-education costs and a county tax refund

The Brandywine School District’s May 31 financial report flagged pressures on the operating budget, driven largely by special-education encumbrances and a commercial tax appeal that will require the district to return roughly $97,000 to New Castle County.

Chief financial officer Mr. McCoy told the board that current-expense tax receipts are $427,000 above budget and that the district expects to receive $900,000 for a state senior-property-tax credit. Offsetting those positives, he said, commercial appeal rulings had "caught up to us," producing a refund obligation to the county in the neighborhood of $97,000 to $100,000.

The report also showed special-education purchase orders and encumbrances made the special-education line appear overspent by $617,000. After adjusting for purchase orders that cover months beyond the fiscal year, McCoy said the over-budget amount was reduced to approximately $192,000. He and other administrators explained some contractor contracts run through Aug. 31, and recommended trimming encumbrances to get an accurate year-end position.

The district’s operating funds were reported as about 92.8% obligated, slightly below last year, and projected cash balances were near a $8.85 million benchmark. Board members asked for continued monitoring, and the district finance committee recommended additional transparency and touchpoints with building leaders when school budgets hit certain benchmarks (75–80%).

Board members approved the monthly financial report after discussion; the finance committee had approved it at their June meeting.