MELROSE — As financial overseers were closing out the budget for the year ending last June 30, they were startled to find the city’s school system had come up more than $2.2 million short.
Supt. Dr. Julie Kukenberger told the School Committee all about it at their meeting on Tuesday, September 27. Using every available resource, the shortfall is expected to be closed to about $775,000. But certain issues remain, and Kukenberger said they will be dealt with so a deficit of this magnitude does not happen again.
Some School Committee members said they certainly hope it doesn’t.
The shortfall came about primarily in four ways, the superintendent said.
• Specific grant funds like METCO, Title I and IDEA 94-124 (a program for kids with disabilities) had for years been built into and managed in the schools’ operating budgets. This led to a shortfall of $1.26 million last fiscal year.
• Transportation costs exceeded the projected budgeted amount by $679,766.
• The Franklin Early Childhood Center generated less tuition revenue while requiring the same level of staffing to support the youngest learners resulting in a $438,879 revenue shortfall.
• And the need to provide coverage for teachers and staff due to extensive COVID-19 absences and restrictions on timelines for returning to work resulted in an estimated $405,013 of unbudgeted coverage costs.
A firm has been hired to help analyze past budgets and budget practices.
In a letter, Kukenberger told school employees:
“In early June, I began to learn about some concerns regarding end-of-year processes including end-of-year account reconciliation and closeout. Later, on July 12, I was informed that there may be a significant FY22 budget shortfall. Immediately upon learning of this potential, the new director of finance and I began collaborating with our colleagues in the City Auditor’s office to determine the magnitude of the shortfall.
“In a slideshow, I share how we identified the problem, the actions taken to mitigate the budget shortfall, and the next steps designed to ensure that this never happens again.
“As the Superintendent, one of my many important responsibilities is to lead the administrative team to develop a budget that is aligned with the district’s mission, vision, values, and goals and addresses the needs of all students. This includes allocating and managing expenditures and revenue sources and effectively communicating the budget rationale with staff, community members, and stakeholders. Ultimately, as the superintendent, the budget is my responsibility. Therefore, I take full ownership of the current fiscal reality.
“It is also imperative that we maintain separation between the FY22 shortfall (already incurred expenses) and the FY23 staffing shortages we are currently experiencing. The PreK-Post Grad educator shortfall is impacting the entire Nation.
“Moving forward, please rest assured that the needs of our students and supporting our educators will remain our number one priority.”
According to Kukenberger, Mayor Paul Brodeur is “strongly considering allocating American Rescue Plan Act (ARPA) funds to meet the district’s financial obligations and facilitate the closing of the FY22 school budget.”
