Board hears near‑final 2024‑25 budget results, new state special‑education grant and insurance shortfall

Norwich finance staff on Tuesday reported the district is projecting a razor‑thin favorable variance for fiscal 2024‑25 after an early budget freeze and several non‑salary savings, but flagged a larger structural concern in the district’s self‑insured health plan that will require attention.

A staff presenter summarized year‑to‑date savings and drivers. Natural gas heating costs fell from about $607,000 two years ago to an estimated $306,000 this year — a roughly $301,000 reduction — and diesel/gas purchases for transportation fell from about $676,000 to roughly $509,000, a roughly $167,000 savings. Combined, staff said those utility and fuel improvements contributed nearly $468,000 in savings compared with prior years. Transport contracting changes and bus routing opt‑ins also drove recent month‑to‑month cost reductions, the presentation said.

The board was told the city council adopted a 1% contribution to the school budget; the board voted to accept a $96,637,707 education budget for 2025‑26 as the amount the district will operate under.

On state funding, staff reported an unanticipated allocation: the legislature created a new Special Education Expansion Development (SEED) grant under house bill 5,001; Norwich’s allocation appears to be $599,793 and the funds are restricted to direct special‑education services in district programs (teachers, paras, targeted interventions, equipment and curriculum). Staff cautioned the board that the SEED grant carries compliance rules and a potential penalty for misspending (a two‑to‑one penalty language was noted), and the district will await program rules before finalizing spending plans.

Staff also summarized the state’s ECS (foundation) funding updates and other legislative outcomes. The presenter said the district’s overall state allocation picture improved versus an earlier projection, which reduced near‑term budget pressure.

The meeting highlighted a looming liability in health‑care funding: the district participates in a pooled self‑insured health plan with the city and Norwich Public Utilities; presenters said claims experience has eroded prior surpluses and that the board will need to decide on steps to replenish or restructure the plan. A staff member said the health fund deficit is approximately $2,000,000 and that options will be developed with the city and the district’s broker over the next several months.

Other business noted: the district will transition substitute staffing to a third‑party provider (ESS) on a one‑year trial to improve placement rates and control costs; the board approved ratification of the administrative assistants union contract for July 1, 2025–June 30, 2028; and the board voted to extend the superintendent’s contract by one year. Those personnel actions were approved in or after an executive session and recorded as unanimous votes.

Board members asked for more data on areas including pre‑K reimbursement timing, transportation opt‑ins and the details and rules tied to the new special‑education grant. Administration said it will return with implementation plans and rule clarifications when state guidance is published.