FY'26 Budget Document (December 10, 2024)

Wellesley Public Schools: Fiscal Year 2026 Budget

• Circuit Breaker Revolving Fund: Circuit Breaker is the state’s special education reimbursement program to offset high-cost special education student placement, services, and transportation. These funds can be carried for one fiscal year following receipt. In Wellesley, 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 expenses:

Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Balance Carried Forward

Receipts

Expenses

$2,372,565 $2,989,663 $2,851,857 $2,944,086 $2,917,950 $3,028,377 $3,252,171 $3,365,782 $3,384,134 $2,923,316 $3,181,712

$2,372,565 $2,619,319 $2,988,362 $2,977,925 $2,581,674 $3,564,653 $3,252,171 $3,365,782 $3,384,134 $2,923,316 $3,181,712

$0

$370,344 $233,839 $200,000 $536,276

$0 $0 $0 $0 $0

2025 $0 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 15 : 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. Government” (“Act”), Chapter 218 of the Acts of 2016. With local acceptance, a municipality may create a reserve fund for future payment, without further appropriation, of unanticipated or unbudgeted special education costs, out of district tuition or transportation. Acceptance requires approval by majority vote of the School Committee and Town Meeting. Accessing these funds requires the approval of both the School Committee and Select Board. The balance in any such reserve fund shall not exceed two percent of the annual net school spending of the school district. Any interest earned shall remain with the fund. A Special Education Reserve Fund was established by Annual Town Meeting (March 2017, Article 10) with a $20,000 transfer from Free Cash. Below is a brief history of the annual receipts (including interest earned) and expenses: • Special Education Reserve/Stabilization Fund: In 2017, Governor Charlie Baker signed into law “An Act to Modernize Municipal Finance and

15 Massachusetts Department of Elementary and Secondary Education website (A Primer on Financial Aspects of Special Education)

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