Norwalk City and Norwalk Public Schools officials on the evening reviewed the tentative FY27 operating budgets, with officials from both sides warning that a recent property revaluation, higher employee health‑insurance costs and recent collective‑bargaining agreements are driving a funding gap the city must address.

"We added $3,000,000, thanks to a municipal grant made, from the legislature, that was added to the board of education budget," City CFO Jared Schmidt said, describing one-time and carryforward resources that bolstered the current year. Schmidt told the joint finance committees the city expects employee health‑insurance costs to rise in the 12–14 percent range in FY27 and noted six negotiated contracts that create compounding salary pressures.

BOE finance staff described a tentative FY27 BOE request of roughly $263 million to support restored positions and programs. The BOE presentation emphasized that 75 percent of the district budget pays salaries and benefits, and that enrollment and need indicators — including a sustained rise in multilingual learners and higher special‑education identification — are increasing structural costs.

Parents who spoke during public participation urged full funding of schools and restoration of programs cut during last year’s budget crisis. Maria Maslinski thanked city leaders for previous mid‑cycle restorations but said budgeting should be transparent and proactive rather than relying on last‑minute solutions: "If there is money to save programs and staff, then offer it upfront," she said.

Officials described a mix of revenue and one‑time supports that helped in FY26, including a $3.3 million property sale pushed into FY26 and $4.5 million (a $3 million municipal grant plus $1.5 million carryforward) added to BOE funding. Schmidt said FY25 planned use of fund balance was $8 million, but departments and better‑than‑expected revenues reduced actual use to $5.8 million.

The city noted other mitigating steps: an internal vehicle‑registration effort to recover unpaid taxes and continued attention to high building‑permit revenue. Board staff flagged recurring costs that remain on the horizon — school security (now budgeted at roughly $600,000 as an operating item), busing contracts ($12 million annually, with the most recent increase around 8 percent), and a partial local supplement needed to make full‑day pre‑K grants operational.

Officials urged parents and residents to continue engagement as the budget moves through consolidation and public hearings. Jared Schmidt said the consolidated city/BOE operating budget will be presented to the Board of Estimate and Taxation and Common Council on Feb. 9; additional public hearings and committee reviews are scheduled in February and March.

No formal appropriation or vote occurred at the meeting; the committees directed staff to continue analysis and to post the detailed budget book and presentation materials online for public review.