Finance update: Easton Public Schools reviews $2.7M in revolving funds and flags narrow FY27 net school spending margin

At the May 14 school committee meeting, Director Spagna presented a detailed review of the district's active revolving funds and an FY26 budget update.

Spagna reported roughly $2.7 million held across 21 active revolving accounts (report run May 3), excluding the lunch fund. He highlighted major balances and uses: the special education revolving fund (funded by Pre-K tuitions and related receipts) stood at about $888,000 and is being used to offset out-of-district tuition pressures; a town-level special-education reserve (created by town appropriation) holds roughly $275,000. Spagna cautioned that revolving funds have legally restricted uses and should not be treated as recurring operating revenue; using them for recurring positions could quickly exhaust balances.

Spagna explained net school spending requirements under Massachusetts law and said the FY27 budget shows a narrow margin: proposed budget $50,096,817 vs. required net school spending $49,869,671, leaving approximately $227,000 of leeway. Given that narrow cushion, he urged careful use of revolving funds and recommended quarterly reporting and a close watch on special-education placements and other large potential expenditures.

On FY26, Spagna presented monthly projections through May 5 and noted expected year-end journal entries and encumbrances; he expects the district to finish the year in positive position after approved year-end expenditures and a planned return to the town of $447,873. Committee members asked about fund cleanup, dormant accounts, facility rental revenue (including EV charging receipts), and athletic-field planning for future capital needs.