Deficit Triggers Partial School Spending Freeze

By Tanjua Damon

The Newtown School District is dealing with a $414,000 deficit by transferring money from accounts that still have funds and instituting a partial spending freeze in order to balance its current budget.

Director of Business Ronald Bienkowski presented to the Board of Education a list of areas that could sustain funding cuts in order to make up for the shortfalls in special education tuitions and services, medical benefits, emergency building repairs, bus driver salaries, and sewer assessment fees.

Mr Bienkowski recommended to the board that it vote to transfer $133,000 at their meeting next week from salary accounts, transportation services, workers compensation, and professional services. He also recommended that in the future the board could consider reducing funds in building and site improvement projects, staff and program development, staff training, textbooks, instructional equipment repair, instructional supplies, and the self-insured dental deposit to cover the $281,000 remaining balance.

School board members had hoped that the district would not have to freeze supply spending this year as it has done annually for at least the last four to five years in order to cover expenses incurred by the district that are beyond its control.

Mr Bienkowski explained to the board the biggest budget culprit is special education tuition out-of-district. He told the board that in March alone the district has gained three additional students who require services outside the district. He went on to say that the district only budgeted for 28 students, but has 41.

The district is also dealing with a cut from the state in the Excess Cost Grant that allows districts to collect money for any students on which they spend five times the amount of the district per pupil expenditure. Governor John Rowland has said that districts will receive no more than 85 percent of what they are entitled to this year because of the state budget crisis.

Mr Bienkowski told the board that the money the district receives from the Excess Cost Grant could be less than what they receive this year because there will be a new formula that requires school districts to submit what they spend. The money will then be divided evenly among the districts. Newtown could lose at least $205,000 next year.

Mr Bienkowski told the board that he will continue to watch spending and look to see if there are other accounts that can be used to help cover the deficit with the least impact to the students the district serves.

The Board of Education will discuss the deficit again at its meeting Tuesday, April 8, beginning at 7:30 pm.