The Town of Norwood held an information session on May 5, 2025, to discuss key financial matters, particularly focusing on the appropriation to the special education reserve fund and adjustments to the town budget.

The meeting began with a presentation on the proposed transfer of funds from free cash to the special education reserve fund. The Norwood School Committee is seeking to increase the reserve fund to the maximum allowable balance of 2% of net school spending, which amounts to approximately $1,500,000 based on the current net spending of $79,000,000. Currently, the reserve fund stands at $700,000, prompting the committee to request a transfer of $880,959. However, the Board of Selectmen recommended a smaller transfer of $300,000, which would bring the reserve balance to $1,000,000. The final amount will be determined by the Finance Commission during their meeting later that evening.

The discussion highlighted the importance of maintaining a robust reserve fund for special education, which can be subject to fluctuations due to unforeseen expenses, such as out-of-district placements. The school administration emphasized that building up the reserve is a prudent financial practice, especially in light of potential reductions in federal funding and the ongoing special education review that may yield further recommendations.

Questions arose regarding the rationale behind the request for additional funds when there were reports of surplus cash within the school budget. Some attendees expressed concern that the school committee should prioritize bolstering the special education reserve instead of exploring other spending options. The school administration clarified that any surplus would ideally be directed towards reserves, reinforcing their commitment to fiscal responsibility.

The meeting concluded with a consensus on the necessity of having a reserve fund to address the unpredictable nature of special education costs, ensuring that the town is prepared for any financial challenges that may arise in the future. The Finance Commission's recommendations will be pivotal in determining the final allocation for the special education reserve fund.