Special education is proving costly for the Board of Education — a projected $600,665 overrun, to be exact — because of increased legal and tuition expenses and professional education services.
Paul Hendrickson, the district’s business manager, presented his financial report ending Jan. 31 at the board’s meeting Monday night and reported he’s keeping a close eye on the special education budget for the rest of the year.
“We will continue to look at it weekly,” he said.
The account is actually $823,296 over budget year-to-date, and is projected to be $1,889,216 at year’s end; however, the town is scheduled to receive an excess cost reimbursement (ECR) just south of $2.2 million.
“When the ECR is netted against the special education expenses, special education is $600,665 over budget,” Mr. Hendrickson wrote in his memo to the board. “Please note: the over-budget trend in special education could intensify if there are serious numbers of unanticipated needs with significant costs. We will have to monitor the situation.”
The board didn’t seem irked with the overrun, mainly because it will be offset by the $588,378 health benefit savings that stems from the district’s switch in providers last year, according to Mr. Hendrickson’s report.
However, one member heeded Mr. Hendrickson’s warning.
“We just need to understand that this part of the budget is volatile,” said board member John Palermo, who spoke earlier in the meeting about keeping a closer eye on the special education account looking ahead. “It’s unpredictable, and that’s the cause for concern.”
Special education wasn’t the only account over budget.
Fuel and electricity were over budget 12% and 4%, respectively, because of colder temperatures outside.
“This will result in energy being $101,658 above budget at year-end,” Mr. Hendrickson said.
Fortunately, that expense will also be canceled out as teachers’ salaries are projected to be under budget by $234,879 at year-end.
Mr. Hendrickson concluded the report by saying that he projects the district will be $249,034 under budget at year-end.
The board unanimously approved the report.