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Community Corner

Sports, Electives Spared in School Budget

But decision to use a fund set aside to pay medical benefits sparks debate about the district's future finances.

Sports, high school electives and other programs in danger of being cut from next year’s school budget have gotten a reprieve, at least for the 2011-12 school year.

The Board of Education Thursday night adopted its final budget for next fiscal year, a $61.4 million plan that calls for no cuts to programs.

Faced with a $2.1 million gap between its budget recommendation and the budget approved by the Town Council, the school board had been considering cost-saving measures such as raising student activity fees, increasing class sizes and eliminating some sports and extracurricular programs.

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School officials said Thursday night none of those steps are necessary, thanks to savings from a recent concessions agreement with teachers and a healthy balance in the district’s medical benefits trust fund.

The school board reduced the budget by $750,000 in the teachers’ salary account, $1.3 million in the medical benefits account and $45,424 in the pension account.

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"We can go into next year knowing we can provide the same level and quality of services for our students,” said Superintendent of Schools Greg Florio.

The board approved the budget in a 4-2 vote, with board members Alan Sobol and Tod Dixon voting against the plan. Board member Tony Perugini was absent.

The approval came after some debate about whether the district should be dipping into its $2.6 million medical benefits trust fund to help balance the budget. The fund is used to pay out medical claims, which have been running lower than expected. 

Because the fund has such a healthy balance, Town Council members suggested the school district use the money to close the budget gap.

"This in effect takes advantage of the significant balance that exists,” Florio said.

But Sobol raised concerns about cutting the trust fund in half in a single year, noting that the school board is responsible for paying up to 110 percent of budgeted medical claims in a given fiscal year and that board members could be held personally liable for any deficit.

Sobol tried to pass a motion to postpone the budget vote to obtain a legal opinion as to whether using the trust fund was legal or “negligent” but it failed in a 4-2 vote.

Florio said he has seen numerous motions to draw from the trust fund to cover shortfalls during his 20 years in the school system. “It has never been an issue,” he said.

Should there be any deficit, whether through skyrocketing medical claims or any other unforeseen circumstance, Florio said “it is incumbent upon me to balance that budget.”

“I would be sure, as I have for 20 years, that board members are not liable for that expenditure,” Florio said.

Town Councilor Andy Falvey, who was in the audience, said the council was comfortable making the recommendation because Florio budgeted $8 million for medical claims and administrative costs that are now averaging $6 million. Even if costs rose to $7 million, “that still leaves you with $1 million plus whatever is in the trust fund,” Falvey said.

Florio said he is more concerned about future budgets, because eventually the trust fund will need to be replenished. “This in my mind is pushing some liability down the road,” he said.

In other business, the school board approved its five-year capital expenditure plan, which requests $3.4 million for capital projects in the next fiscal year.

Proposed 2011-12 spending, which needs Town Council approval, includes $730,000 to upgrade technology and infrastructure in the district and $2.2 million for building maintenance and repairs, including $340,000
to address indoor air quality concerns at the high school.

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