The public money allocated by Fairfield to private institutions, nonprofits and regional agencies will be scrutinized by the Board of Finance and other municipal officials.

The board this week approved the establishment of a subcommittee whose task it will be to create a policy for funding such organizations through the town's annual budget.

"I appointed Ken Brachfield and Chris DeWitt, who had both previously expressed interest," Board of Finance Chairman Thomas Flynn said. "We're going to reach out to the (Representative Town Meeting) and ask them to appoint two members." The subcommittee will also include a member of the Board of Selectmen.

"The goal is to establish a policy and come up with the criteria for private agencies to be considered for funding," Flynn said. The subcommittee is to report back to the finance board at its Feb. 1 meeting.

Flynn said First Selectman Kenneth Flatto brought up grandfathering those agencies and organizations that have been receiving public funds in the coming 2011-12 budget cycle.

"There needs to be some sort of grandfathering," Flynn said, "especially given the lateness of the year and the toughness of the economy."

All town contributions to the private agencies are reviewed each year during the budget process, Flynn said. Some of those allocations, such as to regional governmental agencies, are required by state statute and the amount is determined on a per capita basis.