After projecting a nearly $1 million surplus coming primarily as a result of COVID-19 related facility closures and the curtailment of many late winter and spring activities, school district leaders are proposing to carry most or all of that windfall into a non-lapsing fund that would, in part, offset $300,000 in planned bonding for a Hawley School HVAC project.

During an April 23 Board of Finance meeting, Board of Education Chair Michelle Embree Ku, School Superintendent Dr Lorrie Rodrigue, and District Director of Business Ron Bienkowski were joined by school board member and CIP Committee Chair Dan Delia in a discussion of that proposal and other ways the district was considering applying its 2019-20 projected surplus along with existing funds already in the account.

Officials were careful to caveat many of their comments by pointing out the many unknowns ahead of them — primarily whether or not there would be some type of reopening of local schools for any remaining part of the current academic year. That decision is being weighed at the state level now, according to updates during recent daily press briefings by Governor Ned Lamont.

According to audio and notes from that finance board meeting monitored by The Newtown Bee, the school board is weighing the possibility of applying a roughly $942,000 balance to the district’s Non-Lapsing Fund. If that transfer is approved and combined with the current balance, the non-lapsing account would have approximately $1,753,139 available as the new fiscal year begins July 1.

Listen to an audio transcript of the April 23 Board of Finance meeting by CLICKING HERE

Applying Likely Surplus

School officials told the finance board they are also hoping to reserve $300,000 of the fund — if it amounts to its projected balance — for unanticipated Special Education expenses the district might face in the 2020-21 fiscal cycle. Additionally, district leaders want to reserve $350,000 toward the cost of returfing the Newtown High School stadium, and $250,000 for unanticipated expenses related to further COVID-19 related expenses.

If all the proposed transactions were to occur as planned, it would leave a balance of $616,139 in the non-lapsing account. The transfer between surplus and the fund cannot occur without a Yes vote from the finance board. By statute, Bienkowski said the board of education can reserve up to two percent of its total annual budget in the fund.

With all the uncertainty over the remainder of the current year, and what may happen over the summer and into the next school year, Dr Rodrigue told finance officials she has asked her department heads and principals to attempt to define any related expenses they are already anticipating in areas like special education compensatory services, technology, and tutoring.

Ku reminded the finance board that since the school district is Newtown’s largest single employer, she and her fellow board members are concerned about the public health implications tied to local schools reopening — whenever that may be.

As Governor Lamont has telegraphed he expects to see some aspects of social distancing continuing into the fall and year’s end, the school board leader added that social distancing practices within Newtown’s school environments would be challenging, and could present extraneous expenses not yet considered, never mind defined.

Committee Of Re-Entry

Dr Rodrigue said a district “Committee of Re-Entry” will continue to refine information with an eye on defining added needs and related expenses moving forward, despite the fact that the current coronavirus situation is still very fluid. Delia echoed that while the school board works to be good stewards of taxpayer dollars, there are a lot of unknowns about what schools and the process of educating students will look like in the coming weeks and months.

Responding to a question from finance board member Christopher Gardner about how soon his board will be expected to act on the proposed surplus transfer, Finance Chair Sandy Roussas reminded him that specifics around numbers cannot be defined until the 2019-20 fiscal year closes. Roussas said the district also has the wherewithal to use any of its budget funds for any approved reasons before June 30.

The superintendent said she is committed to transparency in regard to the non-lapsing fund, and Ku said the district could utilize any school board approved funds in the budget for the Hawley project, although in the spirit of cooperation, she preferred to move forward with the support of finance officials.

Roussas agreed, encouraging both boards to work in partnership to deliver the best outcomes regarding the projected surplus, and Delia invited finance board members to the next CIP/Facilities subcommittee meeting, where the issue will presumably be discussed further.