New London ― Members of the Board of Finance and the public next week will discuss the modified 2024-25 budget proposal, including a school spending plan that includes more than $1 million in extra funding.

The City Council’s Finance Committee on Wednesday unanimously approved raising Mayor Michael Passero’s proposed school budget from $46.85 million to $47.86 million using a combination of city and anticipated state funding sources.

The Board of Education previously approved an $83.2 million proposal that required $50.8 million in funding from the city ― a $4.5 million jump from the current year.

The committee also cut Passero’s $57.3 million city budget plan by $200,000 through a series of reductions in dues and consulting line items, as well as decreases to police and fire department overtime funding.

Both sets of modifications were approved by the full City Council during a first reading of the budgets Wednesday night. Two more such readings are required before final passage of the spending plans.

The city-side savings, along with $805,000 in revised state Education Cost Share grant estimates, were applied to the school board budget. The modified budgets, if approved without change, would translate to a tax rate of 27.50 mills, a drop of nearly 10 mills from the current tax rate.

That tax rate drop is largely attributed to a recent property revaluation that saw the average assessed value of residential properties in New London increase by 60%. City officials warned the proposed budgets would entail an average residential tax bill increase of $750.

A public hearing on the modified budgets will be held at 7 p.m. Wednesday at City Hall. The new budget plans will undergo scrutiny by the Board of Finance at 6 p.m. on Thursday.

The budget is expected to be finalized in late May.

j.penney@theday.com