BOE to Town: We'll Sue for Special Ed Funds if We Have To

The fiscal year ended almost three weeks ago, but it will be at least a month -- and maybe more -- before the Board of Education closes the books on last year's budget because of a shortfall of more than a million dollars it expects to receive from the town.

The state reimburses school districts for what is spent on special education costs over budget, and for the past fiscal year Hamden schools received almost $2 million in those funds.

That money went directly to the town, and by law it must be handed over to the school district. But that hasn't happened yet, school officials said, leaving a $1.3 million hole in last year's budget.

The town actually received $1,991,000 from the state, Finance Director Michael Belden said, but the board is only asking for the $1.3 million, leaving the town with the more than $600,000 excess.

He sent town officials a letter on June 13 requesting the reimbursement, Belden said, but has so far not gotten a response.

"It's now July 19," board member Myron Hul said, "and we're $1.3 million in the hole right now out of our own pockets, and I see nothing that the town is doing to cover that cost even though they have to, and I am really concerned about it."

The town also received more than $32,000 in Federal Emergency Management Administration funds that were supposed to cover snow-related costs the district incurred over the winter, Belden said, but he was informed Tuesday they won't see that money.

"I got an email from [Chief Administrative Assistant] Curt Leng this afternoon saying that it was added to the 2011-12 [town] budget," Belden said, "so essentially it's spoken for."

That won't be happening with the special education state reimbursement money, board chairman Michael D'Agostino said.

"We will sue the town for it if we have to," he said, "because we are personally liable for it."

By state law, if a school district ends a fiscal year with a shortfall, Board of Education members can be held personally responsible to fund the shortfall because they are responsible for the school budget.

"We won't sue them for the $32,000," said D'Agostino, who also is an attorney, "but we will sue them for the $1.3 million."

But he's confident it won't come to that, D'Agostino said. 

"I think they understand what their legal obligation is," he said, "and I don't think we will have a problem getting the money."

Leng said later Tuesday night that he didn't know enough about the situation to be able to comment.

"The state statute is very clear that the $1.9 million is ours," Belden said, and because of that he felt confident closing out the fiscal books for the 2010 fiscal year.

But board members said they would prefer to rectify the $1.3 million hole before officially signing off on the end of the fiscal year.

"For me, I need to hear with certainty about the $1.3 million," D'Agostino said. "It's a big deal that we haven't gotten it yet."