BOARD OF EDUCATION REQUEST #170 Mrs. Traub made a motion to modify the Board of Education Additional Cost Grant by $137,106 and out of district placements both on the revenue and expenditure items. Mr. Scoville seconded the motion and it was unanimously approved.
Mrs. Traub explained that this is State money coming from additional out placements during the year that were not budgeted. She said there hasn't yet been a discussion on an updated number, and pointed out that the State Statute specifies they cannot overspend their budgets -- they would have to know that the revenue was already approved for them in order to go through on some of these line items where perhaps they have encumbrances. She said waiting until the last week in June to firm this up might mean a deficit situation.
Mayor Bingham recommended waiting until their budget committee meets for a clearer picture.
Mr. Bushka asked if we have the authority to give them additional allocations.
Mrs. Traub said there are other options and that as long as there's money in other departments, the Board of Finance could approve a budget transfer--otherwise they'd look toward the fund balance. She said as long as we're comfortable that we have additional funds within the city's budget, it would just be a budget transfer.
Mayor Bingham said we don't like other departments doing that. We recommend they stay within their budget, except in obvious emergency situations.
Mrs. Traub pointed out that the Board of Ed did have unanticipated costs this year such as legal fees and the settlement payout.
Mrs. Traub said that going back from the beginning of the year, the Board of Ed's health insurance fund was almost $100,000 under-budgeted to start the year. She is concerned that the Board of Ed has opted to under fund their health insurance line item. She asked why they didn't ask for an adjustment of $100,000 or mention it at the Board of Finance hearing, when they knew that they had a change in their health insurance premium last spring. The Board of Ed basically underfunded their budget by $100,000 to start July 1st, she said, and that $100,000 would have come a long way in the deficit they have now. Mrs. Traub said the Board of Ed is apparently going to intentionally do it this coming year, and wondered if it was something that was planned or if it was just an oversight.
Mr. Scoville agreed that it should have been part of a budget discussion over months.
Mayor Bingham explained that the City bills the Board of Education for 110% of their health insurance. If we've had a good year, he said, we credit it back to the taxpayers and that's what you see as a revenue source. He said they are contractually obligated to 110%, but are budgeting at 105%.
Mrs. Traub explained that the Board of Ed can opt, against the Mayor's recommendation, to fund it at 105% and that once approved, the Board of Finance has no jurisdiction on what they do. She said the question is how the Board of Ed is going to make up the difference. |
