Connecticut State Department of Education

Connecticut Local or Regional Board of Education Application for Fiscal Intervention and Oversight

Application Purpose:

Pursuant to Section 388 of Public Act No. 26-68, a local or regional board of education (“Boards” or “a Board”) may, by a majority vote of such board, submit an application to the Commissioner of Education to participate in a fiscal intervention and oversight plan. Boards must complete this application procedure and submit all required documentation to the Commissioner of Education.

Eligibility:

Connecticut local or regional boards of education.

Application Procedure:

Boards seeking fiscal intervention and oversight shall, by a majority vote, submit a completed application to the Commissioner of Education. The application must include all the submission requirements listed below and be submitted to the Commissioner of Education by the Board Chair with all Board members and the Superintendent on copy. Unless otherwise noted, all official correspondence by the Commissioner of Education with the Board will be directed through the Board Chair.

Start the Application for Fiscal Intervention and Oversight

Submission Requirements:

To be considered for participation in fiscal intervention and oversight, Boards must submit the following to the Commissioner of Education. After reviewing a Board’s application, the Commissioner of Education may request additional documentation beyond the application submission requirements.

  1. Documentation of a majority vote by the Board to submit its completed application to the Commissioner of Education to participate in fiscal intervention and oversight (i.e., official minutes from a Board meeting).
  2. A cover letter signed by the Chair of the Board that includes the following:
    1. A rationale for fiscal intervention and oversight;
    2. A summary of the local or regional board of education’s current fiscal status;
    3. A statement regarding the readiness of the district to engage in fiscal intervention; and
    4. Interventions initiated or pursued by the local or regional board of education to mitigate fiscal concerns.
  3. Financial documents that illustrate the Board’s fiscal challenges including, but not limited to the Board’s:
    1. Current fiscal year sources of revenue;
    2. Current fiscal year adopted budget by object code;
    3. Current fiscal year monthly expenditure report by object code;
    4. 5-year historical revenue and expenditure report by object code;
    5. Unexpended fund balance or reserve fund for educational expenditures;
    6. Health insurance reserve balance (if applicable);
    7. School nutrition fund balance;
    8. Outstanding legal mandates, orders, or settlements affecting the Board’s costs;
    9. The balances of any and all other grants or funds not used to pay for operational expenses but may be used to offset operational or capital expenses; and
    10. Any other relevant documents or materials determined by the Board of Education that may assist in illustrating the need for fiscal intervention.
  4. The name, email, and phone number of the district’s superintendent and the individual responsible for oversight of the Board’s finances (i.e., Chief Financial Officer).

Start the Application for Fiscal Intervention and Oversight

Application and Initial Review Process:

Upon receipt of a completed application, the Commissioner of Education, in consultation with the Secretary of the Office of Policy and Management, shall conduct an initial review of such Board's financial condition, which may include, but need not be limited to, (1) meeting with local officials, (2) assessing such Board's budget deficit and the underlying causes of such deficit, and (3) assessing the financial condition of the municipality or municipalities of such Board.

Fiscal Intervention and Oversight Plan Development:

After conducting an initial review, the Commissioner of Education shall develop a fiscal intervention and oversight plan for such Board, which shall (1) account for any legal mandates, orders or settlements affecting such Board's costs, and (2) include, but need not be limited to, requiring such Board to appear before the Municipal Accountability Review Board (MARB) established pursuant to Section 7-576d of the General Statutes to discuss such Board's financial condition and compliance with such plan.

Municipal Accountability Review Board Review

The Commissioner of Education shall submit any fiscal intervention and oversight plan developed to the MARB. The MARB shall review such plan and may recommend revisions to such plan to support the long-term financial sustainability of such Board and the municipality or municipalities served by such Board. Such review shall include, but need not be limited to, confirming that such plan:

  1. Ensures accuracy in the accounting of the expenses and liabilities of the Board;
  2. Improves financial reporting systems of the Board as necessary;
  3. Establishes and maintains transparency in the Board’s fiscal operations;
  4. Requires the Board to notify the Connecticut State Department of Education (CSDE) of any contracts to which such board is a party and exceed one hundred thousand dollars;
  5. Requires the application of LEAN practices and principles; and
  6. Includes a comprehensive school facilities and administrative optimization initiative.

The MARB may require such Board of education to appear before it to discuss such Board's financial condition and compliance with such plan.

Secretary of the Office of Policy and Management Review

The MARB shall submit any fiscal intervention and oversight plan reviewed by the MARB, with any revisions to such plan recommended by the MARB, to the Secretary of the Office of Policy and Management. The Secretary shall approve such plan or require the Commissioner of Education to revise such plan.

State Board of Education Review

After approval or revision of such plan, the Commissioner shall submit such plan to the State Board of Education for approval. Such plan shall be implemented upon the approval of the State Board of Education.