At its Sept. 8 meeting, the Hudson School Board revisited the district’s end-of-year fund balance and debated whether any portion should be retained or returned to taxpayers. After discussion, the board voted to return the full amount to the town to help reduce the tax rate.
During a previous meeting, Business Administrator Jenny Graves presented a financial report for the end of the fiscal year. One of the highlights, she noted, was approximately $1.2 million in revenue above the projections.
Graves said the district would have an opportunity in September to revise its revenue estimates with the state.
“It’s my belief we’ve been too conservative with our revenue estimates,” Graves said. “Closing that gap will be one of my first action items with the district.”
She also explained that roughly $1.1 million remained from funds carried over due to the cyber incident that impacted the district, which inflated the total fund balance.
In total, the district ended the year with about $4.8 million in available funds, including $2.5 million in unspent general fund appropriations.
After accounting for warrant article allocations, the board had $4.2 million to decide on.
Graves clarified that the fund balance can be used for warrant articles or budget support, but unlike a rainy day fund, it cannot be carried over year to year.
She referenced a 2020 voter-approved measure allowing the board to retain up to 2.5 percent of the fund balance – approximately $1.3 million – for emergencies or tax rate reduction, per RSA 198:4-b.
Graves said the board could retain a small cushion but made no formal recommendation.
Board member Ethan Beals supported retaining a portion, calling it a “tool in the toolbox” for emergencies.
Chair Maureen Dionne said she had reviewed the issue extensively and leaned toward returning the full amount.
“I agree it’s one possible tool in the toolbox,” Dionne said. “But we don’t always need to use all of the tools.”
She also noted the district already maintains several reserve accounts for specific needs.
Ultimately, the board voted not to retain any of the fund balance, opting to return the full amount to taxpayers.
The next Hudson School Board meeting is scheduled for Sept. 22 at 6:30 p.m.
