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South Country board hears treasurer outline of special-act recovery plan and $11 million projected deficit
Summary
Treasurer John Belmonte told the South Country Central School District board that special-act legislation and short-term borrowing have placed the district on a recovery path, but he projected a roughly $11 million cumulative deficit by June 30 and described lengthy state reporting and controller certification before bond proceeds are applied.
The South Country Central School District board on Tuesday heard a detailed treasury briefing on the district's deficit-recovery plan, including how recently enacted special-act legislation and short-term borrowing are being used to stabilize cash while the district completes audits and seeks certification from the state controller.
Treasurer John Belmonte told the board the appropriation report for the month ending May 31 will show negative entries "by design" under the special-act deficit financing framework and that the controller's office must certify the deficit before bond proceeds can be applied. "I don't want anyone to think that because we do have negatives that we've over expended the voter-approved budget," Belmonte said, explaining the certification step and the plan to sell bonds next May.
Belmonte reported the district held about $27.9 million in cash at May 31, including an $11 million bond anticipation note and a $7 million advance of general state aid. He said those cash inflows put the district in a stronger position heading into the next fiscal year and could reduce or eliminate the need for a tax anticipation note in 2026'27, which would avoid roughly "upwards of a million dollars" in interest expense.
On projected deficits, Belmonte said the board should expect a cumulative anticipated deficit "by the end of June 30th" of "upwards of around $11 million," a figure that includes prior-year shortfalls and the current year. He also described enhanced oversight tied to the special-act legislation, including quarterly financial reporting for 30 years to the controller's office and legislative fiscal committees.
Board members asked clarifying questions about timing and mechanics of certification and bond sales; Belmonte and district leadership said auditors must close the year and the controller must certify the deficit before the special-act financing fully takes effect.
The board unanimously acknowledged receipt and review of the May 2026 treasurer's report before moving on to other business.
What happens next: the district will close fiscal year books, complete external audits and work with the controller's office on certification that will allow special-act bond proceeds to be applied to the deficit.
