There will be a special meeting on Tuesday to resolve the issue.
LUDLOW – The Board of Selectmen and the School Committee will meet Tuesday at 8:15 p.m. in the selectmen’s meeting room to iron how how to pay for a $180,000 shortfall for health insurance caused by more teachers taking municipal health insurance.
Selectmen Chairman William E. Rooney told the School Committee that there is a $180,000 shortfall in this year’s school budget for the fiscal year which ends July 1.
Rooney came to the School Committee meeting because he said the town does not have the money to make up the shortfall.
The town needs the help of the School Department to pay for the shortfall, Rooney said.
School Superintendent Theresa M. Kane said the School Department should have been notified last fall of the shortfall.
She said that 23 teachers who were hired to replace retiring teachers elected to take the municipal health insurance as well as 16 teachers who joined in an open enrollment period.
There were also seven new hires who took health insurance, she said.
She said the town did not notify the School Department that there were additional School Department employees taking the municipal health insurance.
“We should have been notified in the fall,” she said.
School Committee Chairman Michael J. Kelliher said it would be extremely difficult for the School Department to find $180,000 a month before the fiscal year ends.
“This is a significant deficit,” Rooney said. “We don’t have the money.”
School Committee member James P. “Chip” Harrington suggested that the two boards meet on Tuesday to try and resolve the issue.
Brian D. Bylicki, president of the Ludlow Education Association, said the town has $2.1 million in its stabilization account. He suggested that the $180,000 be taken out of the stabilization account.
Rooney said selectmen do not favor funding recurring expenses such as health insurance out of the stabilization account. “That would be a difficult sell to Town Meeting members,” he added.
School Committee member Jacob R. Oliveira said Ludlow has a very strong bond rating. He said he does not feel the bond rating would be negatively impacted if the money were taken out of the stabilization account.
Kenneth J. Grew, who will take over July 1 as interim superintendent, said town officials should contact state legislators to see if further state revenues can be sent to the town if more taxes than were projected are collected.