Norwich ― Facing a projected $1.87 million budget deficit this year, school administrators have instituted a spending freeze on supplies, technology, equipment and other items for the rest of the current school year.

School Business Administrator Robert Sirpenski told the Board of Education Tuesday that special education costs have skyrocketed, expected to end the year with a $2.9 million deficit. Unanticipated costs include 12 new placements of students in specialized programs, transportation costs and the $425 per hour cost of contracting for a hearing instructor. Sirpenski called special education costs “financial roulette.”

State reimbursement for special education excess costs will cover an estimated $868,000, leaving the special education deficit at a projected $2.1 million by June 30, Sirpenski said. Other areas of the budget also are in the hole, including a combined $564,000 in all salary categories. The district has realized savings in some areas, including winter heating and snow removal costs, but not enough to cover the entire deficit.

With just eight weeks to go in the school year, the freeze on equipment and supply purchases should have minimal impact in the classroom, Sirpenski said, and the heating season is mostly over.

Unlike in past years, the school district has a safety net for budget deficits. The school board this year will use funds in its non-lapsing account to cover the deficit. The City Council agreed to create the fund in 2021 and has allowed the board to keep portions of pandemic-era budget surpluses over the past two years to cover unanticipated expenses and emergencies. The fund now has $3.3 million, Sirpenski said.

This year’s budget deficit comes as members of the school board and the City Council get set to meet to discuss the proposed 2023-24 school budget. The Board of Education approved a proposed $92.8 million for next year, with a 6.98% increase over this year. City Manager John Salomone proposed a total of $88.9 million, a $2.1 million increase over this year.

The Board of Education-City Council Ad Hoc Budget Committee will meet at 6 p.m. April 26 at City Hall to begin discussions on the school budget before the City Council makes its final budget decisions in early June.

c.bessette@theday.com