Waterford — The Board of Finance passed a significantly reduced version of the town's school budget Wednesday after the Board of Education shrunk its request by more than $500,000.   

The school board held a special meeting Wednesday just minutes before the Board of Finance meeting began, unanimously approving the new $46,353,730 budget.

The amended proposal represents a 2.16 percent increase over last year's budget.

The school board amended its request in response to an announcement earlier this month that the state Department of Education would release more than $1 million in pre-kindergarten education funding to LEARN, the regional agency that administers the magnet Friendship School shared by Waterford and New London.

Uncertainty about whether the state would give that money to LEARN left the Waterford and New London schools boards unsure of how much money they should budget to keep the school afloat.

The Waterford school board passed a budget in February that included a nearly $1 million tuition payment to LEARN — an approximately $900,000 increase over last year's contribution — while New London superintendent Manuel J. Rivera budgeted no increase, assuming the pre-kindergarten money would come through.

In the end, Rivera was right.

The state education department on March 8 paid LEARN more than $1 million in pre-kindergarten funding it had budgeted, but not previously released, for the 2015-16 fiscal year, Superintendent Thomas W. Giard said Wednesday.

The school's governing board used a portion of that to mitigate a standing deficit at the school.

The remaining amount, about $980,000, will be used to reduce Waterford and New London's tuition requirements to about $380,000 each.

The two districts will officially agree on their respective obligations later this month, Giard said.

The Board of Finance tentatively approved that budget 6-1 several hours later. Finance board member Norman G. Glidden voted in opposition.

The promise of pre-kindergarten funding, or more magnet school funding, next year is still uncertain.

"It does not look promising," Giard told the finance board.

As costs for students in special education programs increases at the Friendship School — to just under $13,000 annually per child and about $45,000 annually for every child on the autism spectrum — money from the state has not increased.

"The only way to fill that gap is more money from the town of Waterford, or more money from the state of Connecticut," Giard said.

The school budget approved Wednesday also includes funding to add fencing to the list of varsity sports at Waterford High School.

The fast-growing fencing program at the high school has been a club sport for many years, and parents, coaches and students championed the switch to a varsity program during the school board's budget deliberations last month.

The rest of the district's budget increases are comprised mostly of contractual obligations and necessary expenses, Giard said.

Only about $155,000 of the school budget increase from last year will cover new initiatives or services.

The finance board also approved tentative budget proposals for the town's insurance costs, the Retirement Commission and debt service.

The board will take a final vote on its townwide budget proposal Monday before sending the proposal to the Representative Town Meeting.

m.shanahan@theday.com