School Committee Delves into Deficit

School Committee members said Thursday that better budget tracking methods must be implemented, so future shortfalls can be anticipated and dealt with before the end of the fiscal year.

"We need information in a more timely manner," committee member Jeff Thielman told administrators at Thursday's meeting.

The district's chief financial officer, Diane Johnson, agreed and said steps, including monthly budget reports, have already been taken to improve clarity throughout the year. "We're working hard to put the tools in place to make that happen," she told Thielman.

The district recently uncovered a $1.5 million deficit to close fiscal year 2010. Administrators said the gap was due to a substantial decrease in expected revenues, some of which may still be received in fiscal year 2011, and a dramatic increase in out-of-district special education costs, which have a history of being volatile.

Johnson called the scenario, "the perfect storm."

"Any budget is designed to take a few hits," she said, "but it was hit after hit after hit after it."

Committee chairman Joseph Curro Jr. made a motion, which passed unanimously, to have the budget subcommittee review the deficit with outside auditors and bring back findings to the committee's meeting on November 9.

"It's important that we as a School Committee make a concerted effort to learn from our mistakes," he said.

At the meeting, Johnson outlined the losses in revenues, which totaled about $1.8 million, and increases in out-of-district special education costs, which added another $800,000 to the deficit. She said that through cost containment efforts in fiscal year 2010, the district already recouped $1.1 million, bringing the shortfall to $1.5 million at year's end.

She then went through possible solutions to the deficit in fiscal year 2011, including collecting late revenues and potential savings in budget line items.

The district recently , all of which will be put toward the deficit.

"From what I'm hearing," committee member Leba Heigham said, "we would be looking at staffing cuts right now without the [Education Jobs Fund money]."

Johnson said that would be the case.

Thielman warned the public that it's just the beginning of a much longer process.

"It's going to be a tight year in fiscal year 2011 and 2012," he said. "People should realize it's going to hurt."