Board of Ed: Finance reduction in school budget erodes ‘culture of trust’
All nine Board of Education members have signed a letter speaking out against the $3.1 million that the Board of Finance removed from its budget.
The letter requests that the Town Council work with the Board of Finance to accelerate the timing of a special appropriation or rework the BOF’s amended version of the Board of Education budget.
The changes to the budget “erodes a long-standing culture of trust and respect between our boards and is a departure from collaborative governance processes of years past,” the letter signed by the school board members reads.
First Selectman Kevin Moynihan had forecast that the Board of Finance would make changes as the town tries to establish more financial control over the schools.
Since the 202122 school operating budget had $900,000 earmarked for COVID-19 mitigation, the Board of Finance removed it, until “firmer numbers” were submitted and then plan to pay it through special appropriations.
The letter argues that “this approach to budgeting is wrong. This is not COVID emergency spending; this is funding needed to operate the public schools in the 2021-2022 school year.”
The Board of Education argued that now is “not the time to tell our students that the schools won’t have adequate programming and staffing to meet their many needs.”
“There is no risk that health expenses won't be paid. Zero risk,” Chairman of the Board of Finance Todd Lavieri told Hearst Connecticut Media. “This is about how much money should be in a contingency fund. The town will always cover health expenses for all town employees, teachers, and school
administrators.”
“This is essentially a wait and see approach to budgeting,” the letter said. “It jeopardizes the BOE’s ability to plan and deliver the high-quality programming that the community needs.”
In the 2020-21 fiscal year, the finance board approved $1.94 million in special appropriations for COVID-19 related expenses.
The BOF took $2.2 million in self-insurance from the Board of Education budget, to be rolled into the town’s internal services fund.
The internal services fund allows the town to insure itself instead of having a premium-based health insurance, and has been proven to be a money saver. There have been two such accounts: one on the town business side and the other on school said.
“Elimination of the Board of Education insurance reserve is in violation of town policy, perhaps even more concerning is the apparent decision to disregard and violate town policy by refusing to fund the self-insured health program reserves,” the letter stated.
BOE argues that it is counter-intuitive to be told that it “will not have adequate funding for their health insurance,” according to the letter.
Monyihan explained the situation further to Hearst Connecticut Media. “The Board of Finance has studied this issue intensively,” he said. “It appears that all other area towns that have self-insured town and Board of Education health plans have a single internal service fund.”
Research led the finance board to believe that the Board of Education’s internal services fund to be over-funded, according to Moynihan.
“In knowingly violating existing policy, the Board of Finance actions also jeopardize the strong trust that exists between the BOE, administration…,” the letter reads.
“The Town has ample General Fund ($30 million+) balance backing all obligations and has taxing power which the Board of Education does not,” Moynihan said.
The letter implies that the Board of Finance imposed budget changes are not in line with the state statute.
“The Board of Finance’s informal promise to fund in the future — would require the Board of Education members and administration to act in violation of the law,” the letter states.
In Sec. of Connecticut 10-222 statues of appropriations and budget states: “Expenditures by the board of education shall not exceed the appropriation made by the municipality, with such money as may be received from other sources for school purposes.”
“If any occasion arises whereby additional funds are needed” the Board of Education “shall submit a request for additional funds,” the statute says.
The letter was signed by the New Canaan Board of Education Katrina Parkhill, Chair Brendan Hayes, ViceChair Julie Reeves, Secretary Dionna Carlson, Carl Gardiner, Bob Naughton, Penny Rashin, Jennifer Richardson and Sheri West.