BEDFORD — The school district has reported a $2.35 million budget surplus, which is expected to be returned to the town to reduce taxes, officials said.

According to SAU 25 Superintendent Tim Mayes, the surplus is a result of both a decrease in expected spending and an increase in anticipated revenue.

“About $364,000 of that was from additional revenue we received that was more than we projected,” Mayes said.

Increased revenues were seen in catastrophic aid for special education, which was about $90,000 more than expected, and an increase in Medicaid reimbursements that totaled $135,000.

The district also earned additional revenue from three local endeavors.

The Project SEARCH program, a partnership with Catholic Medical Center that allows students to gain work experience while still in school, earned $37,000 more than expected.

The district's tuition accounts received an additional $60,000, and the lease and rental of school facilities saw an increase of $28,000.

In addition, Mayes said there was less spending than anticipated.

A challenge in creating last year's budget was the uncertainty of how much towns would need to absorb in retirement costs once the state budget was set, as the district's budget deadline came before the state's.

“We didn't know how much would be downshifted from the state,” Mayes said, adding that the district budgeted for the worst-case scenario — a $1.1 million contingency fund.

With only half of that amount used, Mayes said, “we had about a $550,000 to $600,000 fund balance right out of the gate.”

Mayes said it would have been irresponsible not to plan for that contingency.

“You've got to anticipate the worst, and hope for the best,” he said.

In terms of staffing, the district saved about $450,000 by not filling positions vacated by staff retirements and resignations.

In addition, a warmer winter with minimal snow last year saved the district about $200,000 in heating oil, plowing and electricity.

Mayes said he expects the school portion of the tax rate to go down by 10 to 12 cents per thousand dollars of assessed home value.

“It's about twice as much as we thought,” Mayes said.

According to Town Manager Jessie Levine, every $30,000 of the budget, whether in spending or revenue, impacts the tax rate by a penny.

kremillard@newstote.com