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New Haven School District presents FY26 budget that projects $23 million shortfall; officials warn of possible layoffs
Summary
District leaders told a community forum that the proposed FY26 general fund budget reflects full operating costs but faces a roughly $23 million gap after pandemic grant funds ended; officials flagged staffing shortages, declining enrollment and grant reductions as drivers.
Dr. Negron opened a community briefing saying the presentation would walk stakeholders through the proposed fiscal year 2026 general fund budget and the district's priorities. "This budget ... reflects the true cost of operating the entire district," she said, emphasizing that resources should be directed to classroom learning.
Miss Hannons, the district's chief financial officer, reviewed revenue trends and grant funding that supported recent expansions. She said federal pandemic-era ESSER grants that supported programs and staffing have expired. "That money is gone," she said, and the district must return to its regular revenue streams for FY26.
The finance team presented an illustrative full-cost budget for FY26 that would fund existing vacancies and market-driven salary costs; the request shows an increase from the approved FY25 level to what officials said would be the full operating cost. Dr. Negron said the district still faces a substantial staffing shortfall identified in a March 2023 equity gap analysis and that ‘‘we're looking basically short $38,000,000 if we were just going to fund all of those positions,’’ a figure she said covers salaries only.
Officials gave context for the district's fiscal constraints: unofficial enrollment at the start of the year was near 19,000 students across 41 facilities, and student-need indicators are high (about 24.1% multilingual learners, 16.3% students with disabilities and roughly 75.5% qualifying for free or reduced-price meals). The CFO walked through revenue assumptions, noting that education-cost-sharing (ECS) formula allocations and interdistrict tuition grants are key revenue sources but showed little growth in current projections.
Faced with the loss of one-time federal grants and limited growth in state allocations, Dr. Negron said the district would need about $23 million in additional revenue to balance a budget that reflects full costs. "We need $23,000,000 in addition to what we get," she said, and added that leadership is examining rightsizing options, including program-level reductions, combining rosters and, if necessary, school mergers. She said the district's priority in any mitigation will be to preserve the promise of public education for students.
During a question-and-answer period, officials confirmed a staffing gap that includes 13 librarian/media specialist positions and noted one charter school affiliated with the city, Elm City Montessori School, while clarifying that most charter schools operate as separate districts and are funded directly by the state. The CFO also cautioned that one paraeducator contract remains in arbitration and that final arbitration outcomes will affect final FY26 projections.
Next steps include continued review with the Board, community engagement (the CFO noted a community forum in March 2025), and adjustments to the proposed request as state and local revenue estimates are finalized. Officials said they would aim to avoid ending the year in the red but that the size of the gap makes difficult choices likely.
