December YTD report: special-education placements, provider rates and a food-services shortfall shape FY27 outlook

Norwalk — At its Jan. 14 finance committee meeting, Norwalk school district budget staff presented December year-to-date financials and outlined budget drivers that will shape the FY27 ask to the city.

Mr. Osmani (presenting the December 31 YTD figures) said the adjusted general-fund budget is roughly $247.3 million and that year-to-date spending through Dec. 31 was about $107 million, modestly lower than the same point last year because of pay timing and other timing differences. “This is where we are, with the budget, that that was approved at the beginning of the year,” he said.

Staff warned the committee that student-services spending is under pressure. Mr. Osmani highlighted two main drivers: more students identified for services and rising unit costs from third-party providers for out-of-district placements. “We are seeing more students identified as needing services that we may not have in district and so they're being out placed,” he said, adding that provider unit costs are increasing and that pending legislation may cap provider rate increases.

Committee members and staff discussed in-district investments to reduce outplacement, including training paraeducators and program development at elementary and high schools. Budget staff said those investments carry upfront costs but could lower outplacement spending over time.

The district’s food-services program also drew sustained attention. Staff said the district traditionally received grant awards supporting breakfast and lunch at 10 schools, but this year only four schools received that funding; combined with lower meal participation, staff said the district lost about $1,000,000 in anticipated revenue and may need roughly $1.415 million more to fully fund food services this fiscal year unless internal savings are found. “We're anticipating that for this year, we probably need, like, $1.415 million into the food services fund,” Mr. Osmani said.

On process and timing, staff said the superintendent's team presented the FY27 operating and capital requests to the mayor and city staff the morning of Jan. 14. The city’s appropriation amount that will inform the district’s final request is expected by Feb. 9; the committee was told to expect public hearings on the budget in mid-February and further committee review in February and March.

The presentation closed with staff reminding members that monthly forecasting is based on monthly staffing rosters and that the budget office runs those forecasts whenever it brings the financials to the committee.

The committee did not take further budget-setting action at the meeting; staff were asked to continue monthly reporting and to present updates at upcoming meetings and public hearings.