Shelton, CT: BofE facing deficit over special ed costs, health insurance

Mar 30, 2025, Trumbull, CT Times: Shelton schools seek $3.3 million in reserves to cover projected deficits 

The school district will need to tap into reserve accounts for some $3.3 million to keep from going over budget this fiscal year. 

The Board of Education sent a letter to the Board of Aldermen alerting the aldermen it would need to access the funds to cover estimated overages in health insurance and special education accounts. School officials also plan to urge the Board of Aldermen to include similar reserves in the coming fiscal year budget, which would fly in the face of Mayor Mark Lauretti's proposed 2025-26 budget which has eliminated the reserve accounts. . . .

Romano further stated the school board will continue to try and mitigate funds to cover costs, but “we may need financial support through the established reserves this fiscal year to balance our budget at year’s end.” 

The Board of Education has $79 million in the present fiscal year. The aldermen last year bucked Lauretti and created a $3.3 million reserve to cover potential health insurance and special education overages. 

“We will be tapping into (the reserves) this year,” Superintendent of Schools Ken Saranich said to school board members at their meeting Wednesday. 

Saranich followed up by saying the district faces significant cuts next year if next year’s school budget receives only a $1 million increase over the present year with no money set aside in reserve, both actions are part of Lauretti’s 2025-26 budget proposal. 

Lauretti told Hearst CT Media he expected the reserves in this year’s budget to be built into the coming 2025-26 budget to help with any extra education costs. 

But with what the school states now, that does not look like a possibility. 

“It begs the question ... did (the Board of Education) manufacture the need or can they not manage money,” Lauretti said. 

 “When you give (the Board of Education) everything they ask for, there’s no incentive for them to manage money,” Lauretti added, saying the school board has asked for $8 million total in new money the past two years. “I understand why the Democrats go along with it, but now they’ve got the Republicans doing it. There’s no sense in nominating anybody from our side to serve on the board.” 

Saranich said he will express this fact during a joint budget hearing with the Board of Apportionment and Taxation and the aldermen. He said he will also justify the school board’s need to have its entire $83 million request. 

“We want a fiscally responsible budget and what’s in the best interest for the school system,” Saranich said. 

Lauretti’s proposed $139.8 million budget for the 2025-26 fiscal year represents a $1.4 million drop from the present year’s budget. If Lauretti’s budget is approved as presented, the city’s mill rate would drop from 19.18 to 18.57.