Link to recording – 1:55:00 time stamp for discussion on FY26 budget planning and surplus allocation
At the meeting, Regional School Committee Members made the following observations:
- Amherst had $5 million remaining in free cash at the end of the year after obligations and most of it is going to the capital stabilization fund. As in the previous several years, $1 million is going to roads and sidewalks. This is in addition to the 10.5% of property taxes that go into the cash capital fund. It is not clear that any of this money goes to the Regional Schools.
- The large surplus seems to be the result of conservative management practices for the last three or four years, and of both overestimating expenditures and underestimating revenue. This year a large portion of the surplus seems to be derived from underestimating investment interest income on money sitting in various accounts. This conservative budgeting practice squeezes the Region to stay within its 4% guideline, when clearly there is more money out there.
- In the past, there was a surplus of about $1 million and for the last several years it has been in the window of $4-6 million. These large surpluses are coming at the expense of the schools as this is money that is not at work in the towns.
- The financial orders for appropriation of this free cash are requests from the Town Manager and have already gone to the Finance Committee with specific earmarks. One of the current requests by the Town Manager has been denied in the past and is in these financial orders again.
- The Regional School Committee does not know if they can get access to any of the free cash, but they intend to ask.
- On Friday at the Finance Committee Meeting, the Town Manager was asked if he had considered reaching out to the Region about Regional School needs and he said that he had had conversations with Dr. Xi but refused to elaborate any further.
- It is not clear where in the Town of Amherst’s process the Region would be able to make requests for capital needs. In the Town of Amherst, the IT costs come out of the capital (and not operating) budget. They make those requests via the Joint Capital Planning Committee (JCPC) but in the Region, they are in the operating budget. So, when the town is getting 3% they are really getting 3% plus the capital money.
- The School Committee and Superintendent should take into consideration that the Town of Amherst uses and benefits from the Regional buildings and therefore derives more benefit from the buildings than the other towns.
- Any requests have to go to the Town Council and then to the Finance Committee and then back to Town Council
- Amherst residents should comment at the 11/18 Public Forum on the Budget.