Groton Board of Education seeks $1.4 million to cover budget shortfall, build up health insurance reserve

Jun. 15—GROTON — The Board of Education is seeking a special appropriation from the town to cover an anticipated shortfall in this year's budget and to build up its health insurance reserve.

Board of Education Chairman Jay Weitlauf made the board's request to Town Councilors this past Tuesday for $1,399,824 in federal Impact Aid revenue. Weitlauf said the town is receiving more of the federal funding than had been projected, while acknowledging the town has the discretion over the funds.

The amount of Impact Aid funding the town receives depends on the number of children who are connected to the Naval Submarine Base or other federal properties, according to the school district.

According to a June 4 budget document, the estimated deficit for the education budget is $681,983, after the board received special education and Medicaid reimbursements that offset some of the expected overages. Weitlauf said the numbers are still estimates for the fiscal year that ends June 30, and the school district's interim business manager will provide a full financial report.

The rest of the requested funding could then shore up the health insurance account, which is self-funded and which the board shares with the town, Weitlauf said.

Weitlauf said the school district this year has had "multiple issues beyond our control." He said the unanticipated expenses include water leaks at Robert E. Fitch High School and a failed hot water heater, the installation of an ADA-compliant elevator at Fitch, a replacement generator at Groton Middle School and a cyberattack.

He added that the school district is also facing increased costs from utilities to special education and higher-than-anticipated health insurance claims from school district employees, among other unanticipated increases in expenses.

He said an estimated $515,000 Department of Defense supplemental grant was due to be received in May ― which would help lower the projected deficit ― but it has not yet been received. He said the school district is awaiting word whether it will arrive by the end of the fiscal year.

Town councilors compiled a list of questions they have for the superintendent and Board of Education and information they are requesting.

Town Manager John Burt said Wednesday that the discussion will be on the agenda of the June 25 Town Council Committee of the Whole meeting.

"Before the Town could make any decisions, we will need to work with the Board of Education and Superintendent to determine what led to the current financial position, what the exact funding need is and determine how best to ensure that a similar request is not needed in future budget years," Burt said.