If you have any questions regarding education law in Connecticut, contact one of our attorneys at (203) 221-3100.

Local Board of Education

Under Connecticut General Statutes §10-248a, town boards of finance (or in towns without such boards, the board of selectmen or another appropriating authority for the school district) can deposit unspent funds from the education budget into a non-lapsing account. Effective from the 2023-2024 fiscal year onward, Section 7 of Public Act 24-45 will authorize local boards of education to make these deposits directly. The existing legal restrictions remain unchanged: 1) the deposited amount cannot exceed 2% of the prior fiscal year’s education budget; 2) expenditures from this account must be solely for educational purposes; and 3) any expenditure requires approval by the town’s board of education.

This new provision allows local boards of education to determine whether and how much to deposit into such an account, up to the 2% limit, or establish one if none exists. Previously, local boards of education depended on the town’s fiscal authority to create such accounts and make deposits, which often did not occur as unspent funds would otherwise revert to the town at the fiscal year’s end.

Regional Board of Education

According to Connecticut General Statutes §10-51(d)(2), regional boards of education can establish reserve funds for “capital and non-recurring expenditures,” funded by appropriated funds and surplus operating funds at the end of the fiscal year. Starting from the 2023-2024 fiscal year, Section 8 of Public Act 24-45 will expand this authority, allowing regional boards of education to create and use these funds for any “educational expenditure,” not just for capital projects and equipment purchases.

The Act also updates the name of these accounts to “reserve fund for educational expenditures,” replacing the previous “reserve fund for capital and nonrecurring expenditures.” Other existing restrictions on these reserve funds remain in place, such as requiring a majority vote from the regional board of education for their creation, and limiting annual appropriations and surplus supplements to no more than 2% of the district’s annual budget.

This new provision offers regional school districts an additional option for managing surpluses, enabling them to consider reducing budget assessments to member towns for the following year or allocating surpluses for future educational purposes by depositing them into a reserve fund.

Maya Murphy P.C. has proudly been included in the 2024 Edition of Best Law Firms®, ranked among the top firms in the nation. In addition, Managing Partner Joseph C. Maya has been selected to The Best Lawyers in America® 2024 for his work in Employment Law and Education Law in Connecticut. Recognition in Best Lawyers® is awarded to firms and attorneys who demonstrate excellence in the industry and is widely regarded by both clients and legal professionals as a significant honor.

Our firm in Westport, Connecticut serves clients with legal assistance all over the state, including the towns of Ansonia, Beacon Falls, Bethany, Bethel, Branford, Bridgeport, Brookfield, Cheshire, Danbury, Darien, Derby, East Haven, Easton, Fairfield, Greenwich, Guilford, Hamden, Madison, Meriden, Middlebury, Milford, Monroe, Naugatuck, New Canaan, New Fairfield, New Haven, Newton, North Branford, North Haven, Norwalk, Orange, Oxford, Prospect, Redding, Ridgefield, Seymour, Shelton, Sherman, Southbury, Stamford, Stratford, Trumbull, Wallingford, Waterbury, West Haven, Weston, Westport, Wilton, and Woodbridge. In addition to assisting clients in Connecticut, our firm handles education law matters in New York as well.

If you have any questions or would like to speak to an attorney about a legal matter, please contact Joseph C. Maya and the other experienced attorneys at Maya Murphy, P.C. at (203) 221-3100 or JMaya@Mayalaw.com to schedule a free initial consultation today.