The School Committee’s Finance Subcommittee is moving to align Milton’s Special Education Stabilization Fund with state legal limits, signaling a shift toward a more flexible 2% funding ceiling. During a remote session on April 8, members debated whether to stick with a previously proposed $750,000 cap or adopt a percentage-based model that scales with the district’s growing budget.

Acting Chair Mark Loring opened the discussion by incorporating feedback from the Select Board regarding the fund's mechanics. While the subcommittee previously leaned toward a fixed dollar amount, Loring noted that Select Board member Winston “proposed using the 2% cap instead.” Loring admitted that previously, this group felt $750,000 was appropriate because 2% is a high number we likely won't reach without significant free cash from the town, but the group ultimately found the flexibility of the state standard more appealing.

Business Manager Katie Pinkham clarified the financial implications of the shift, noting that for Milton’s current budget, the 2% limit would sit closer to $1.5 million. In other districts, we used the Mass General Law limit of 2% of net school spending, which is significantly higher than $750,000, Pinkham said. I think it’s reasonable to let it be the legal limit to streamline it and tie it to the law. She also emphasized the necessity of an annual review clause to allow the town to make modifications in the future as we operationalize it.

Chair Amanda Serio supported the percentage-based approach to ensure the policy remains durable as costs fluctuate. I hear what you're saying, Mark, but if costs increase, the $750,000 feels arbitrary, Serio said. Using the percentage means you don't have to revisit the specific number every year; it stays relevant based on the law. The subcommittee also agreed to a $50,000 minimum withdrawal threshold to prevent frequent, small-scale requests to the Select Board for reserve access.

The district’s reserve strategies were further bolstered by news of a potential windfall in state transportation reimbursements. Pinkham reported that a state supplemental budget could move the reimbursement rate from 61% to 75% for the current fiscal year, which would translate to approximately $259,000 in additional funds. This revenue would flow into the Circuit Breaker Reserve Fund, which the subcommittee is currently formalizing with a policy that mimics the stabilization fund. Member Nathan David Hutto questioned how the district would manage the fund if it approached the legal carryover limit. What happens if we are on track to exceed the ceiling? How do we manage that? Hutto asked. Pinkham explained that excess funds would typically close out to the town’s general fund, which could then be certified as free cash and potentially redirected back into the Special Education Stabilization Fund.

Looking ahead to the May Town Meeting, the subcommittee is crafting a “Promises Kept” presentation designed to show voters how previous override funds were utilized. Hutto advocated for a robust data presentation, including a district profile to remind residents of the school system's scale. I think we should share a good chunk of what was at the Warrant Committee, Hutto suggested. I'd also like a district profile—how many students and staff we have—to remind people of the scale of the district. We should have a robust appendix with per-pupil expenditures across DART districts.

Serio urged the subcommittee to ensure the data reflects a holistic view of student success, moving beyond traditional Ivy League metrics to include trade schools and professional careers. I want to be conscious of recognizing different paths—trade schools, service, professional careers—not just college, Serio said, suggesting the district frame its impact as making students college and career ready. The presentation will also highlight that nearly 20% of the student population is supported by an Individualized Education Program (IEP) or 504 plan, justifying the significant portion of the budget dedicated to special education services.

The revised policies for both the Special Education Stabilization Fund and the Circuit Breaker Reserve Fund are expected to move to the full School Committee for a first reading. Loring noted that because the stabilization fund is jointly managed, the Select Board will also need to vote on the final policy language before the town meeting warrant articles become available in July.