BOE: Suit Over Account Shift Would Be 'Last Resort'

Unless the Board of Education gets its $1.074 million back into its own accounts, the district's increase for 2011-2012 is 1.11 percent, rather than 2.375 percent, requiring the board to make more budget cuts.

It could sue to recover the funds, but "a joint approach to this problem ... is of course the best resolution here," according to Thomas Mooney, a lawyer specializing in school districts. He spoke at Thursday's special meeting of the school board.

Before adding to the cut list, Schools Supt. Ralph Iassogna said the board should talk to the Town Council about moving the money back. Asked about more potential cuts, he estimated that $1 million equals 15 teaching positions, and $500,000 can be saved by closing a school.

In the end, the panel voted to give diplomacy another try. The Town Council meets tonight at 8 p.m. in Chambers in .

Board Chairman Ted Lovely said Thursday he is "ready and willing" to sit down with the council. The chairman was talking to Town Council Chairman Carl A. Massaro Jr. after the meeting.

Thursday was the board's first meeting since the council voted April 14 to move $1.074 million earmarked for health insurance into a townside account. The town will administer the fund. The money would pay for an 11 percent increase in health insurance costs.

Mooney also said in his opinion that the town's transfer was not consistent with state law. It must be done by agreement, but the school board had not agreed to to the move as of April 14.

"As I understand the town's position, the funds are available to the Board of Education only if the Board of Education can justify to the town its need for these funds, and the board uses those funds for insurance charges," Mooney wrote. "These conditions make this a 'contigent appropriation,' which is unauthorized under Connecticut law."

He cited the 1963 state Supreme Court decision in which the town of Ellington was ordered to return education funding to the school board.

On Friday, First Selectman Tim Herbst defended the account shift and vowed to "move forward."

He added that the school board already has $10 million to pay its insurance bills.

Herbst said the council would use all the money for health insurance, but wasn't sure the district would have. The town also looked at controlling the energy payment fund, but is barred by state law, the first selectman said.

Also, he has said the transfer will help the town to possibly pool town and school health isurance to save money.

Herbst said the district needs to "budget properly," adding that the Board of Finance, which must approve townside expenditures, would "filet" him if he used earmarked money for other purposes.

But the school board does is not overseen by a finance board, he noted.

He also blasted the board for spending "$400 an hour to hire a Hartford lawyer to pursue legal remedies against the town."

The board should instead be working with the Town Council on how to proceed, Herbst said.

Meanwhile, the school board also has two more meetings scheduled for Tuesday and Wednesday.