East Lyme — Local state legislators discussed with the school board Monday the future of state funding for school construction projects, as the board seeks information on how to move forward with the town's elementary schools.

The board officially retracted on Monday its vote from last March that approved a proposed cost estimate of $45.06 million, before state reimbursement, to renovate as new the Lillie B. Haynes School and up to $1.5 million to refurbish Flanders Elementary School.

The uncertainty over state funding factored into the board's decision to not file for state reimbursement for the project this year.

The board has been discussing instead a refurbishment project for the elementary schools.

State Sen. Paul Formica, R-East Lyme, and State Rep. Ed Jutila, D-East Lyme, told the school board that it would be difficult to make predictions, especially since it's an election year, but they outlined their thoughts on what the state could face in the future.

Jutila, who is not seeking re-election after 12 years in the legislature, said there is no way to determine the makeup of the legislature next year — or even if it remains the same, how members would vote. But he said the state has consistently appropriated a minimum of $500 million for school construction projects each year.

"As part of the bonding package, I think we've always considered the school construction component to be the highest priority, and it's the bulk of what we bond every year actually," he said.

But he pointed out that the state's operating expenditures "might be a different story," with a projected roughly $1 billion deficit.

Jutila said the governor's office thinks it is unlikely that reimbursement rates for school projects would change.

He said East Lyme school officials have until June 30, 2017, to file for state reimbursement, so they could continue to assess the chance of receiving state funding.

Formica spoke about efforts to stabilize the state budget and said he expects discussion in the legislature about a spending cap and a bonding cap, though it is uncertain if they would be implemented.

He said that legislators should work with local officials to ensure they know about all the steps, if they decide to seek state reimbursement.

Board of Education Chairman Tim Hagen said the state's financial situation has pushed costs back onto municipalities by chipping away at Education Cost Sharing and municipal aid grants. He asked legislators if they expected that would continue.

Formica spoke about the importance of improving communication between the General Assembly committee overseeing appropriations and the committee overseeing revenue. He also spoke about increasing efficiencies across towns and collaborating to create a climate that would bring more high-paying jobs to the state.

Jutila said that ECS has been the last thing the legislature wanted to cut and held off for years. 

He said the legislature understands that further cuts to municipal aid and ECS would mean "tough choices" for communities, which could face raising the tax rate or cutting services.

"We're sensitive to that up there, and want that to be close to, if not the last thing we cut," he said.

Jutila also pointed out some advantages of moving forward with a building project now.

"Interest rates are at a historic low," he said. "If there is ever a time to do major projects, this is the time to do it."

The school board is expected to continue its discussions on the school buildings at its next meeting.

k.drelich@theday.com