Superintendent outlines systemwide budget pressures for East Haddam School District

Superintendent Dr de burrito presented the East Haddam School District's systemwide budget to a Board of Education subcommittee on Jan. 28, highlighting several cost drivers that will increase next year's operating needs.

Dr de burrito said employee benefits are a primary pressure point, with medical and dental costs expected to rise roughly 15% in the coming year. "We're expecting for medical and dental" about a 15% increase, the superintendent said, and those higher premiums will be reflected across the employee-benefits lines.

The superintendent also explained a forthcoming accounting change for adult education spending. Historically the district's adult-education costs were split between a tuition line and other special-education-related lines; the district pays a neighboring district (Middletown) for adult-education services and will reclassify the entire amount under Purchased Services so it is no longer hidden in tuition or special-education accounts. Combined annual adult-education spending was discussed at about $18,000, with one line previously showing roughly $8,100 and the rest in the superintendent's purchased-services line.

Legal and contractual expenses rose in the draft budget to account for anticipated work on two contracts and support during a bus contract bid process. The superintendent told members the legal line was increased to ensure the district can engage counsel or mediation if needed during negotiations.

Telecommunications and technology costs will also rise under a five-year Frontier contract renewed last year; the contract includes scheduled increases and cloud/phone-line charges. The district is auditing phone-line usage to remove unused lines, and the telecom package is bundled with the town to take advantage of an education-sector rate, the superintendent said.

Energy and capital-related repayments will affect utility costs for the next five years. Dr de burrito explained the district pays a solar vendor and receives a discounted Eversource rate; however, loan repayments for recent LED lighting projects will increase the Eversource-related line over the next five years. The superintendent estimated about $20,000 per year for the high school and roughly $188,000 per year for the middle school tied to those repayments.

Security and building maintenance needs were reviewed: the budget increases modestly for visitor-management (Raptor) and radios; building-maintenance supplies were reduced by $20,000 after a line-item review, while contracted grounds work and other purchase services were left in place for planned maintenance.

A major fiscal concern is the food-service operation, which the superintendent said is not self-sustaining and shows a notable deficit. Connecticut law requires the district to ensure its meal program breaks even; when it does not, operating funds must cover the shortfall. The superintendent noted prior board action to cover large negative balances (citing a prior $180,000 transfer made to balance the program), and said upcoming Board of Education discussion will include options for mitigating the deficit, including local marketing to increase paid meal participation and identifying grants or other one-time funds.

Personnel-related costs have been affected by recent state paid-leave legislation. The superintendent said the law and related administrative requirements have increased substitute staffing needs and paperwork burdens; to comply the district adjusted how some sick-time accruals are tracked and made hours available on an hourly basis, which in turn raises substitute line items and creates added administrative tracking obligations.

On reserves and capital, the superintendent proposed using a Board of Education Reserve account (previously called the capital reserve) to preserve one-time funds for maintenance or one-time purchases. Current estimates place the district's reserve balance at about $500,000 (down from near $900,000 in prior years after capital draws). The board was told the district will continue to review capital requests and may use reserve dollars for one-time maintenance or purchases if necessary.

The superintendent encouraged board members to request individual walkthroughs of the budget and said adjustments will be made to warrants (including reallocation of a sports-officials charge that had incorrectly hit a middle-school page). The meeting ended after members asked clarifying questions and were offered a follow-up review.

The subcommittee did not take any formal votes during the Jan. 28 session; the superintendent said the full Board of Education will discuss capital and the districtwide budget at upcoming meetings.