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Politics & Government

New London Schools Face Deficit

Increasing costs and cuts in state funding mean New London schools will have to find another $4 million just to continue funding existing programs at the current level next fiscal year.

About halfway through the Board of Education’s first budget workshop last night, board member  Mary Curtin raised her hand to ask a question: “Does anyone have an Aleve?”

By the end of the meeting, it was clear that many people would soon be sharing the pain. New London School District budget for the next fiscal year promises to be a painful experience all round with cuts in state funding and rising costs that are likely to make for some tough decisions.

The current school budget amounted to more than $50 million. About half of that is paid for by state funds, with an additional $7.5 million coming from federal grants. Local tax dollars account for $17 million.

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As there’s a budget freeze in place, the coming fiscal year's overall budget should be in the same ballpark but the district has a couple of strikes against it going in because of increasing costs and decreasing state funds.

New London School Superintendent Nicholas Fischer noted that, “flat funding is not flat, it’s a net 3 percent loss each year.”

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Overall, Assistant Superintendent Christine Carver predicts the school district is going to need an additional three to four million dollars just to keep the services it currently provides. As it has in the past, the school administration will be asking each school to recommend reductions to bring their overall budgets down by a certain percent across the board.

The school district can also expect less funding from the state as a whole. “This year it’s particularly problematic,” said Carver. “We just found out that grants have been capped at 75 percent.”  

That means New London will have to find the other 25 percent to pay for services mandated by the state.

Special Education Adds Up

The school administration predicts a number of factors will drive up costs this coming fiscal year. Special education costs, which already account for nearly 30 percent of the budget, are the leading cause of the biggest hikes in spending.

Due to an unprecedented increase in the number of special education students entering the system, Carver said, special education costs this coming year are likely to increase by $500,000 to $700,000. Fischer pointed out it can cost as much as $250,000 a year to provide services for just one special education student if a residential program is deemed necessary.

By law, New London is responsible for covering the costs of all special education students living in the school district, even if that student doesn’t attend public school. State grants are used to pay for much of that but the state doesn’t cover the entire cost. In some cases, it only reimburses the district if costs exceed $60,000.

Costs Rise and Grants Drop

Other factors beyond the school district’s control include a union contract that calls for a 2 percent pay increase to go into effect in 2012. The district also expects to lose $1.3 million when a two-year grant comes to an end on June 30, 2012 and will lose another $100,000 from a state grant. Carver also expects the cost of benefits to go up by at least 10 percent next year.  

Less predictable are possible increases in energy and transportation costs. New London’s student population is particularly transient, with about 25 to 30 percent moving in and around the district. If a student has to leave New London because of homelessness, which Carver said is happening more and more these days, the law allows that student to continue attending the same New London school if the family chooses.

It’s good for the students but expensive for the school district, which has to assume the added cost of transporting a child from Norwich, for instance, to New London every day.

Does Harbor Elementary School Have a Future?

Carver warned the board that it will be facing some particularly tough decisions this year. With the new Winthrop Magnet School due to open in January, she noted, the board will have to decide the future of Harbor Elementary School. Carver expects enrollment at Harbor School to drop to about 100, 150 at most when Winthrop opens.

“Do we let kindergarteners come into Harbor? Is it worth keeping the school open? What are we going to do over the next two years during the transition? Given the deficit we’re likely to face, it’s worthy of a discussion,” said Carver.

What's Next

The Board of Education will have some time to consider all of this during the course of three additional budget workshops. Maria Whalen, New London school director of business and finance, should have a preliminary budget prepared by mid-January. The Board of Education has until March to review it before presenting to New London City Council on March 15.

For the first time ever this year the new budget will also be subject to approval by a mayor. Given the number of disputes over past budgets between the City Council, the Board of Education, and the New London School District administration, the chances of all of these groups reaching an agreement on the budget that satisfies everyone seems remote. One thing seems clear, however, cuts are inevitable.

Correction: The article originally stated that a union contract calls for a 10 percent pay increase. According to Fischer, the contract calls for a 2 percent pay increase.

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