Newton Public Schools FY26 Digital Budget Book

Fund Balance Restrictions The Massachusetts Department of Revenue, Division of Local Services (DLS), in collaboration with the Massachusetts Department of Elementary and Secondary Education (MA DESE) issues guidance to school districts on revolving fund accounts. Revolving funds allow a district to carry fund balances from one fiscal year to the next for certain programs. The only restrictions on funds carried by Newton are as follows: Circuit Breaker State Reimbursement Grant: Circuit Breaker is the state’s special education reimbursement grant program to offset high-cost special education student placement, services, and transportation. These funds can be carried for one fiscal year following receipt. In Newton, revenue received in fiscal year 2025 is expended in fiscal year 2025. When possible, revenue collected in one fiscal year is carried forward into the next fiscal year. Below is a brief history of the annual receipts, and carryforward:

The table below lays out NPS’ Circuit Breaker Revenue and Expense History: FY19 FY20 FY21 FY22 FY23 FY24

FY25

Revenue

$5,813,939 $5,644,171 $5,150,831 $6,114,167 $6,562,409 $6,670,136 $7,430,898

Expense

$3,311,679 $1,257,981 $1,658,977 $2,056,878 $3,013,892 $1,641,975 $4,080,898

Carry- forward

$2,502,260 $4,386,190 $3,491,584 $4,057,288 $3,548,517 $5,028,161 3,350,000

The FY’25 Adjusted Budget is based on the reimbursement rate of 75% for instructional costs and 44% for transportation costs. State Guidance on Circuit Breaker Fund Balance. Since MA DESE regulations allow school districts to carry forward up to one year's worth of state reimbursement, the Massachusetts Department of Revenue, Division of Local Services (DLS) advises communities build balances in their Special Education Circuit Breaker accounts in years when actual costs compare favorably with the budget so that in years when special education costs increase unexpectedly or the circuit breaker reimbursement drops, there will be some circuit breaker revenue to cover any unforeseen costs. Building a circuit breaker balance is good management practice as it eliminates some of the risks associated with these unpredictable special education costs. National School Lunch Program (NSLP) Revolving Fund: The Massachusetts Department of Elementary and Secondary Education (MA DESE) recommends maintaining a fund balance in the Food Service Revolving Fund equal to three months of operating expenses. Newton has been able to retain a higher fund balance that has been used to invest in much-needed equipment repair and replacement as well as increased staffing to meet USDA program requirements.

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