Preston — After voters are asked Tuesday to vote for the second time in a referendum on the proposed $11.2 million 2016-17 school budget, residents will be asked to attend a special town meeting June 23 to vote on a request for $98,000 to cover a cost overrun in the current year's special education budget.

The Board of Selectmen on Thursday set the town meeting date for 7:30 p.m. June 23 at Preston Veterans' Memorial School after receiving a request from the Board of Finance to forward the request to residents.

The funding request, which would come from the town's surplus fund, will not need referendum approval, because it is under $100,000, Board of Finance Chairman Norman Gauthier said.

The Board of Education has been warning town officials for several months of a pending deficit in special education costs after several students moved to Preston who needed placement in specialty programs out of town.

At one point, the estimated cost overrun topped $300,000.

But town and school Finance Director John Spang said the school board was able to reduce the cost overrun substantially with the receipt of a $70,000 state special education excess cost sharing grant and through spending cuts elsewhere in this year's school budget over the past several months.

Spang said the board made a transfer of $89,000 in March from unfilled positions in the school bus garage and money budgeted for repairs that was not used.

Another $36,000 transfer was made recently from a savings in the workers' compensation claim account to bring the requested overrun under the $100,000 threshold for a referendum.

c.bessette@theday.com