Town, School Officials Disagree on Ownership of Special Education Funds

A showdown has emerged between the Board of Education and municipal officials over who can lay claim to $128,580 in supplemental funding to Vernon's special education account. 

The money is paid to the town annually, but the school board wants it transferred for this fiscal year, citing a letter from the state Department of Education's chief financial officer it interprets as etched in stone coming down from the mountaintop saying it can be used to to pay off a special education deficit. 

Town officials disagree and are not sending it to the school board, saying the money is already accounted for. The school board is directing its lawyer to investigate legal action over the funds.

The power struggle over the money began on May 3, when school and municipal  officials received a letter from Kevin Mahoney, the state Department of Education's CFO, stating that this year's student-based supplement will total $128,580. Mahoney wrote that, "while it is not the intent to direct revenue from the town to the board of education or from the board of education to the town … we offer the following guidance … If … insufficient local funds are appropriated to meet such special education expenditures, the town must turn over the new state grant money to the local board of education or credit the amount to the appropriate board of education's expenditure account."

School board members took that literally, especially considering the system is operating at a $300,000-plus deficit, a good chunk of which is related to special ed. On May 15, they voted to request the $128,580 from the town. 

A letter dated May 28 was sent to Mayor George Apel from Superintendent of Schools Mary Conway to make that a formal request.

Town Administrator John Ward said he, Apel and Finance Director and Treasurer James Luddecke met and decided the money would stay put.     

"According to the letter from Brian Mahoney … he is saying when there are insufficient local funds … the town must turn the money over. It must be used to support additional costs," school board member David Kemp said.
 
Added Board of Education Treasurer Kyle Percy, "Brian Mahoney is telling us it is Board of Education money."

Luddecke said the supplemental money from the state is consistent - everyone knows it is coming and the amount has been the same for several budgets - and that is is consistently budgeted as revenue, "to offset a tax increase."

He said that is the intent of the legislation authorizing the payout. 

School board member Michele Arn said, "This is an accounting of what revenue the board generates."

Town officials are not budging because, Luddecke said, the money is accounted for as revenue. 

Percy then moved to ask the school system's business office to contact the legal staff to discuss recourses and it was endorsed by board members. 

This was after Ward said he does, "not want this to overshadow what I think is a good relationship."