To The Finance Board—

School Board Explains Financial Procedures

By Laurie Borst

After several months of growing tension between the Board of Education and the Board of Finance, members of the finance board attended a school board meeting to address questions about school accounting procedures for the proposed high school project.

 Board of Finance member Mike Portnoy inquired first about how education funds were appropriated toward the end of the fiscal year, saying, “We know [$1.7 million] was not a surplus as reported. Can you explain how the money was spent in June?”

Superintendent of Schools Evan Pitkoff responded, “It’s been a very challenging school year. We began the year with very grave concerns including the price of oil, diesel for the buses, electricity. As a result, we took a very conservative position early in the year, holding some positions vacant, limiting purchases, delaying some projects until we had a better estimate on the anticipated expenses.”

The district’s business director, Ron Bienkowski, then addressed specifics of expenditures. “We concluded the year with a positive expenditure balance of $272,100. This represents 0.48 percent of the total budget. This will be returned to the town as an unexpended year-end balance.”

School-generated fees (pay-to-play) exceeded the budgeted amount by $18,622. Unliquidated encumbrances from the 2004-05 fiscal year totaled $27,911. This means that a total of $318,633 will be returned to the town to reduce next year’s budget.

Mr Bienkowski pointed out that electric, gas, and water bills, among others, will come in after July. Funds will be held for those bills. Some items are unpredictable such as the need for substitutes or homebound tutors.

“Fuel oil has been a thorn in our side this year. Money was transferred in and out of that account, ending with $35,000 left,” Mr Bienkowski continued. “We also received an Excess Cost Grant from the state. We make estimates a year in advance. The initial filing with the state is based on anticipated costs for transportation and services. It is not until April that we are notified of the amount we will receive.”

The state has been funding this program at about 75 percent. This meant that $152,000 was the amount expected from the state. The program was actually funded at a higher rate, resulting in the district being reimbursed at 82 percent, an increase of $78,000 over the original amount.

Elaine McClure, school board chair, pointed out that a substantial savings of $239,000 was realized from benefit selection. Some teachers signed up for health insurance as singles rather than families.

Board of Finance member Joe Kierney expressed concern about the pay-to-play surplus. “Pay-to-play is a surcharge for those participating in activities. It seems unfair for that balance to be distributed across the town. Is there any thought given, on a yearly basis, at the end of a year, when you have a surplus like this to either adjust the pay-to-play rate next year or find a way to rebate that money to the parents who bore the brunt of the surcharge? Isn’t it meant to be break even?”

“I like the idea of a rebate. We can discuss it,” Mr Bienkowski responded. “We always used to be the beneficiaries of a surplus.”

“This is a tremendous package you’ve put together. It answers most of our questions,” Mr Portnoy said. “We’ll need to digest it before any further questions.”

Paul Mangiafico of the school board questioned why oil had been overestimated.

Mr Bienkowski replied, “In November, we made an estimate that we’d need $185,000 for oil for the balance of the fiscal year. When we got to March, we knew what our consumption was, the winter was warmer, prices didn’t go through the roof. It was high, but not as high as anticipated. We overestimated the amount of money needed. Conservation efforts also added to the savings.”

High School Planning

Contacted on Wednesday morning, finance board member John Torok, who formerly held the position of the school district’s business manager, said current business manager Ron Bienkowski produced a “fairly comprehensive report” that would help finance board members begin to understand particular aspects of the district’s financial practices.

He indicated that Tuesday’s meeting provided further evidence, however, that a joint meeting including the school and finance boards, the Legislative Council, and representatives of the state Board of Education, Bothwell Consulting Services, and the architects for the approved high school renovation is needed.

“I’m far from comfortable with the high school project,” Mr Torok said. “Everyone, especially the taxpayers, want to understand the options.”

The Board of Education discussed the logistics of  just such a meeting on Tuesday. It was decided that Ms McClure would contact Tim Holian, acting chairman of the Legislative Council, and John Kortze, chairman of the Board of Finance, to arrange an informational meeting that would include the public.

In other business, the Board of Education announced that a director of human resources had been hired. Joan Libby, currently serving in that capacity for the Manchester School District, was selected. School board members Lisa Schwartz and David Nanavaty interviewed five candidates for the position.

“Ms Libby meets every criteria written into the job specification,” said Mrs Schwartz. “She is an attorney who served on the CABE. I’m sure she was exposed to any number of educational issues. She is eminently qualified for the position.”

This is a new position, necessary for handling personnel issues in a district that has grown dramatically over the past several years.

The board approved tuition for the 2006-07 school year. Out-of-district students in grades kindergarten through eight will pay $12,218. Students in grades nine through twelve will pay $12,847.

A full-time middle school special education teacher was approved. This teacher will replace two full time educational assistants.

Ms McClure asked Dr Pitkoff about vacancies.

“We are still looking for an elementary school social worker, a high school biology/chemistry teacher, and a school psychologist,” Dr Pitkoff replied. “All other vacancies have been filled.”

(John Voket, contributed to this story.)