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New state law lets Board of Education keep up to 2% in a non‑lapsing fund; council discusses transparency
Summary
Councilors reviewed Public Act 24‑45, which vests the Board of Education with authority to deposit up to 2% of prior‑year appropriations into a non‑lapsing fund without prior council approval; town and BOE staff emphasized reporting commitments and continued council budget authority when funds are spent.
Town and Board of Education officials explained a change under Public Act 24‑45 that affects how unexpended education funds are handled.
Under the law, the Board of Education may establish a non‑lapsing account and deposit up to 2% of the previous year’s appropriations into it. Town staff and BOE representatives told the council that the change effectively shifts the year‑end deposit decision from the council to the BOE, though the council retains budgetary authority at appropriation time.
Officials said the town previously memorialized a lower cap (1%) in a 2016 memorandum of understanding; the new state statute standardizes a 2% cap and removes the requirement that the council approve the initial deposit. Board representatives said the board deposited roughly $1.5 million in unexpended funds this year, which amounted to about 1.7% of its appropriations and therefore stayed within the statutory cap.
Councilors sought clarity on oversight and transparency. BOE staff agreed to meet mid‑year with the council finance liaison to review balances, projected expenditures and any intended use of non‑lapsing funds. Town attorneys and BOE counsel previously drafted a policy agreement reflecting the statutory language; staff said the agreement is largely procedural and aims to provide a reporting trail for council review during the annual budget process.
Councilors also discussed sources of unexpended funds, which BOE staff said typically include lower special‑education costs in a year, open‑choice tuition reimbursements, unfilled positions and one‑time COVID‑era savings. Staff pointed to an example year in which the BOE returned $632,256 to the town, along with other unencumbered purchase orders, and explained that moving eligible amounts into non‑lapsing status allows them to be used later for education purposes rather than reverting to the town’s general balance.
No formal vote was required or taken on policy at the meeting; councilors asked staff to keep providing expenditure reports and to continue the new mid‑year check‑in on the non‑lapsing fund.
