Norwich school board hears breakdown of $2.3 million deficit
Norwich — When the Board of Education reluctantly adopted the $78.4 million budget imposed by the City Council in late June, the board faced an initial projected deficit of $4.5 million.
But board members learned Tuesday that the projected current year deficit now stands at $2.3 million, with significant savings in health insurance, an overall increase of $438,290 in total grants and a $509,000 increase in the state Alliance District grant offsetting reductions in federal grant money. Norwich received $4.4 million in Alliance District money this year.
A request sent to all school system contractors and vendors to reduce bills by 5 percent yielded some savings, including $10,000 this year in printing costs.
Still, when school Business Administrator Athena Nagel reported that five months into the school year, the deficit remains at $2.3 million, board members were briefly silent.
“How are we going to come up with $2.3 million?” board Chairwoman Yvette Jacaruso asked.
“It’s too early to answer that,” Nagel said.
“We keep going,” board member Aaron Daniels said. “Just keep going.”
Nagel and Assistant Superintendent Thomas Baird repeated parts of a detailed presentation given to the board’s budget expenditure committee on Oct. 29.
The biggest projected savings include $1 million in the total $9.5 million health insurance budget for both active and retired district employees, the savings mainly due to a shift to health savings accounts for active teachers.
The district also anticipates a savings of $737,000 in special education tuition, but Superintendent Abby Dolliver said it’s impossible to predict whether new families with special education children will move into Norwich.
Nagel said the projected $232,742 savings in salaries was achieved by shifting some staff to grants, including Baird, whose title changed from curriculum director to assistant superintendent, a position that qualifies for a state Alliance District grant.
Norwich is one of more than 30 districts in the state Alliance District system, receiving additional state funding to improve schools. Dolliver said the Alliance Districts have started to meet as a group. While the Alliance District program created by departing Gov. Dannel P. Malloy is slated to continue for the next three years, no funding specifics have been attached to the legislation.
Comment threads are monitored for 48 hours after publication and then closed.
