Marblehead budget barely in the black

MARBLEHEAD – Facing a $195,000 reduction in circuit-breaker reimbursement money this year, Superintendent of Schools Paul Dulac and School Business Manager Jonathan Goldfield are tightening their grip on school spending in hopes of a balanced budget June 30.The 2003 circuit-breaker law is intended to help local schools pay for special education by guaranteeing 70 percent reimbursement of the cost of placements that exceed $29,320. State budget cutbacks have reduced the 70 percent reimbursement to about 40 percent, resulting in a $195,000 reduction for Marblehead, an amount that Dulac has to make up locally from a level service $27.4 million Fiscal 2010 school budget."I cannot guarantee that we can make up this shortfall for 2010 considering the fact that our budget is very tight as it is," Dulac said. "We are so tight we are squeaking."He called the reduction in reimbursement "really hurtful" and at his request the committee members approved a warrant article seeking money to cover additional school expenses, an article that comes before Town Meeting every year and is usually indefinitely postponed without discussion."Our ability to end the school year in the black is being challenged," Dulac said.Dulac and Goldfield are also looking at the use of American Recovery and Reinvestment Act funds to help cover the drop in circuit-breaker money."I am proposing a conservative cash position," Goldfield told the School Committee Thursday. "Even with increased FY10 costs due to inflation and other factors, I am still projecting a narrowly balanced budget."He noted that $1.4 million remains in the $3.8 million non-salary portion of this year’s budget and proposed "a conditional freeze" on discretionary non-salary and, if needed, discretionary salary items to cover an anticipated food services transfer.He also proposed "a slight increase" in next year’s kindergarten and preschool tuition to cover the costs of that program.