WARWICK — A financial overseer for the Pioneer Valley Regional School District will likely be in place by November, district administrators say.
Pioneer Superintendent Jon Scagel said that a candidate for the job was recommended by the Department of Elementary and Secondary Education, but he did not name the candidate. Scagel and Tanya Gaylord, the district’s finance director, expect to meet with the person in the coming weeks so that he or she can begin by Nov. 1.
A financial overseer is part of the deal in a piece of special legislation that would allow the district to borrow up to $2 million, to be paid back over a period of up to 10 years, and to spend at a deficit, if necessary, through the current fiscal year.
The legislation was supported by state Reps. Paul Mark, D-Peru, and Susannah Whipps, I-Athol, after the district found in May that it had a large financial deficit.
At the time, the deficit was estimated to be as much as $2 million, but most recently was estimated to be about $600,000.
That estimate includes the “lunch debt,” at about $250,000, which has become a point of confusion for district administrators and town officials. At their town meetings in the spring, all four of the district’s member towns voted to pay back the lunch debt over a period of three years. But, Gaylord has said that in the state’s perspective, the debt of the lunch program is part of the district’s total debt, and that the state will likely require the district to borrow for the full amount of the debt. Gaylord said that she will, therefore, not bill the towns for the money until she gets direction from the state.
This has frustrated town financial planners, since they budgeted to pay the first installment of the lunch debt this year. And, because the money was appropriated through Town Meeting votes, it cannot be used for anything else until another town meeting, where it may be rescinded and applied to something else.
Town officials have seen this as a reason to bring in the financial overseer sooner than later.
Beyond that, the extent of the overseer’s role — and his or her involvement in the school district’s finances — is not yet determined, Scagel said. Per the legislation, the overseer must approve new employment contracts and any money transfers worth over $25,000. Whether he or she will have any control over the district’s budgeting process, beyond the final stamp of approval, will be determined as Scagel and Gaylord meet with the recommended candidate over the coming weeks.
Even though the financial overseer is expected to start in November, the legislation that requires the overseer has not yet passed. It was approved by the House, but is now in the Senate, and has not been voted on yet.
Contact Max Marcus at mmarcus@recorder.com or 413-772-0261 ex 261.