Finance committee reviews April finances, recommends $31,000 transfer to cover long-term substitute

The Darien School District finance committee met May 21 and reviewed the district's April 2026 financial report, which showed a positive balance of $175,825 but a month-to-month decrease driven largely by a drop in the state's excess-cost reimbursement rate. Rich, a district staff member presenting the report, said the state cut the reimbursement rate from 68% to 66.78%, reducing district revenues by $88,970.

The committee discussed several variances in operating accounts. Rich said special-education revenue controls (RCs) were positive overall, with general education RCs up $25,193 and special education RCs up $150,632, but that RC18 (long-term substitutes) shows a $31,000 deficit tied to covering an administrator on maternity leave at Royal School. "We are showing the positive balance of 175,825," Rich said, and explained that the $31,000 shortfall is due to hiring retired teachers at higher long-term substitute rates and reallocating previously recorded salary savings.

Committee member Joanna asked whether the salary savings were being moved to cover the long-term substitute; Rich confirmed the savings originally recorded from a late-hired ELP were being reallocated to address escalating long-term-substitute costs. Joanna identified the long-term substitute position as covering Royal.

Phil asked staff to interpret a figure on the report described as an "untapped uncapped entitlement" of $3.4 million. Rich said that figure represents the district's excess-cost exposure if the state reimbursed 100%, but that the state applies a proportional reduction across districts when claims exceed the state pot, producing a lower final reimbursement. "If excess cost was reimbursed at 100% by the state, that's where we're getting 3.4 million," Rich said, adding the actual payment is reduced by the state's cap and the total claims across districts.

Committee members also discussed funding sources. Rich said the district receives roughly $1 million in federal funds (IDEA and Title II), a couple million in state aid (including excess-cost reimbursements and some grants such as an ARPA-funded wellness coordinator grant), and the remainder of operating funds from the town. He said federal funds amount to about 2% of operating revenue, and that capital reimbursements typically cover about 20% of eligible construction expenses.

On the single budget action before the committee, staff recommended a $31,000 transfer to cover the long-term substitute for the administrator, funded by savings in athletic transportation, unemployment insurance, and the previously approved board of education retreat facilitator account. The committee did not record a formal roll-call vote in the transcript; members indicated no objections and moved on.

The chair opened the meeting to public comment and none was offered.