New London — School officials are grappling with potentially crippling state education cuts and the loss of expected funding sources this year even as they promote the establishment of a blossoming all-magnet school district. 

Superintendent Manuel J. Rivera and members of the local legislative delegation say the losses are not to be taken lightly, considering that the district is both developing construction plans for several new schools and recruiting out-of-district students to newly established magnet pathways.

It appears that cuts could come from at least four directions.

The first hit came with the legislature's $6 million cut to magnet schools in several communities, enacted during last year’s special session.

The impact locally is not yet fully known.

The school district is now anticipating the loss of an estimated $1.2 million in state funding for the Nathan Hale Arts Magnet School.

With the end of state oversight of New London schools, $1 million in funding could go away, and enrollment caps could mean the loss of even more aid.

In addition to $7,085 for every out-of-district student, the state would have provided $3,000 for every New London student at Nathan Hale once the number of out-of-district students reaches 25 percent of the total population.

Despite what Rivera said was a dramatic jump in enrollment from out-of-district students in the school's third year, it has not hit that 25 percent threshold.

The school also charges a tuition to the sending towns.

Rivera said Nathan Hale now has about 21 percent out-of-district students and without a waiver, such as the district obtained last year, it will lose the money for the approximately 400 New London students at the school.

The school already has cut afterschool programs in an effort to mitigate the potential losses.

The superintendent expects the number of out-of-district students enrolled to reach beyond the 25 percent threshold by next school year.

The school system and other districts with magnet schools also recently were notified by the state Department of Education to delay their lottery notifications for students entering magnet school programs.

The directive stems from the possibility of caps on magnet school enrollment.

Rivera said he cannot envision that a cap would apply to a district that worked with the state to develop an all-magnet district and is in the midst of recruiting.

“It would cut us off at the knees,” Rivera said. “It’s going to have to be addressed legislatively or administratively. A cap would destroy our efforts to become a magnet district.”

Legislation may be needed, Rivera said, to address what he called the unique nature of the New London school system in becoming the state’s only all-magnet school district.

Architects are now working on plans for a new high school that will have two campuses and both accommodate grades 6 through 12.

State Sen. Paul Formica, R-East Lyme, said the local delegation is working to get magnet school funding cuts restored. The legislative session starts on Feb. 3.

“We’re aware of the unique nature of the (New London) system,” Formica said. “That’s the reason why we have to get those cuts reversed.”

He said it was unreasonable to build a district with the state’s blessing and promise funding “and then cut the operating costs they were counting on to manage that district."

Formica said he expects even more proposed statewide cuts in a host of areas during the upcoming session because of state budget woes. He expects an uphill battle.

Kate McCoy, director of planning and magnet school development in New London, said other cities with magnet schools, such as Bridgeport, New Haven, Waterford and Stamford, all are waiting to find out the impact of the $6 million loss in funding.

Despite the warning by the state Department of Education, she said acceptance notices to incoming students at the Science and Technology Magnet High School in New London will go out as planned this month.

Notices for elementary school students do not go out until April.

McCoy said the school district expects to learn more about how its operating budget might be impacted well before that time.

“This has happened before, a lag between the cuts and how they will impact us,” she said.

McCoy said it would be a challenge for a district like New London, developed with oversight from the state, to operate under a cap, since the goal is to grow the magnet school system.

“As students move into the district, we have to place them,” she said.

Rivera said that, as a small district compared to others in the state, New London is heavily reliant on every dollar offered and promised by the state.

“We built our budget 10 months ago based on certain state revenue projections,” he said.

One other funding source appears to be in jeopardy, he said.

In 2012, the state appointed Steven J. Adamowski to serve as special master for the district as the city began its transformation into an all-magnet system.

The city was receiving $1.1 million annually from the state because of the intervention status.

Rivera said he was informed that at least a portion of that funding may not be available now, despite the fact the state has yet to formally release the district from intervention status.

“I am, of course, hopeful that we will receive full funding for the current year,” Rivera said.

He said he has ongoing meetings with legislators “to find out what we need to keep us on track with this plan developed in partnership with the state.”

"I’m hoping the support will continue to be there as it was conveyed to us more than a year ago,” Rivera said.

Board of Education President Margaret Mary “Peg” Curtin expects to take up the issue of a proposed enrollment cap at the board’s next meeting.

“I am angry right now,” Curtin said. The state "sold this to us — being the only magnet school city in the state — that the funding will be available. We’re doing well. People are coming in. Now all of sudden they say, 'Well, hold up.’ It’s like they’re pulling the rug out from under us midstream. This is serious, not just a blip."

A representative from the state Department of Education had not yet answered questions about the proposed caps to magnet schools or about when the New London school district is expected to be released from state intervention.

g.smith@theday.com

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