ExcessandDeficiency

Annually, the district has appropriated a portion of its Excess and Deficiency (E&D) fund as a revenue source to lessen the impact on member town assessments by offsetting the operational budget By state statute, the district is required to maintain an E&D fund so that any deficit or surplus at the end of the fiscal year may be closed to this fund Per 603 CMR 41 06, a “regional school committee may use all or part of the certified balance in the excess and deficiency fund as a revenue source for its proposed budget” and may not carry more than 5% of its budget in this fund The district is required to have its E&D certified by the Department of Revenue annually and may not use this fund as a revenue source for the budget without that certification. Once certified, the previous fiscal year's E&D becomes available for the aforementioned offset in the next fiscal year. In February of 2023, the Nashoba Regional School District’s FY22 Excess and Deficiency fund was certified at $1,499,142 and $1,200,000 of that fund was voted to be used as an offset in FY24. Please see the table below to review the annual use of E&D as a revenue source in the operational budget. Historically, the district has applied this annual appropriation of E&D to lessen the assessment impact on member towns. Using one-time funds to support annual budgets carries risk. As the district plans for future budgets, it will consider reducing the annual offset of E&D to stabilize the balance within the fund and minimize any potential risk.