District officials report 'no designation' fiscal stress score, explain tax cap and state aid runs

Maureen Ladd summarized the state Comptroller’s fiscal stress monitoring framework and reported Central Square’s current designation as "no designation" with a modest fiscal stress score of 6.7. She explained the system uses both financial indicators (fund balance, operating surpluses/deficits, cash position) and environmental indicators (poverty rate, ELL counts, turnover) to assign scores.

"We have an unassigned fund balance at 5.4%" Ladd said, noting that while the district projects modest use of fund balance over the next year or two given flat state aid, the overall indicators suggest the district remains within normal ranges. She also walked the board through the tax levy limit calculation, explaining the growth factor is only a single piece of an eight‑part formula and presenting a maximum allowable levy of about $34,000,002.74, which she said would equate to an estimated $14.43 per $1,000 tax rate if the district levied to the cap.

Ladd reviewed the governor’s executive budget 'runs' published Jan. 21 and said the district falls into the guaranteed 2% foundation aid increase category (the district’s formula factors do not drive a higher increase). She cautioned that expense‑driven aids and other runs change as state systems update and that past final cost reports for building aid and other items will alter future runs when processed. The presentation closed with a policy and planning discussion: staff proposed using limited fund balance, maintaining programs put in place with federal COVID-era dollars where possible, and advocating to state policymakers for formula adjustments to better reflect local special education and sparsity costs.