Board hears how lower state excess‑cost reimbursements are straining New Britain’s budget

At its Jan. 26 meeting, the New Britain Board of Education heard a detailed financial briefing on rising special education costs and how Connecticut’s excess‑cost reimbursement process affects the district’s budget.

The finance presenter walked the board through how the excess‑cost grant threshold is calculated and said the district’s preliminary reimbursement rate for fiscal 2026 is 72.7%, down from the 91% tier that typically applies to lowest‑wealth districts. Using an example in the presentation, the presenter showed that for an outplacement with a $100,000 price tag the district would receive roughly $15,387 in state reimbursement under the 72.7% rate for eligible excess costs.

Board members and the superintendent described the situation as fiscally unpredictable and said many outplacements and services now cost far more than when the excess‑cost model was written. "The legislation and the funding streams have not kept pace with the change in need," the superintendent said, noting averages and examples discussed in the packet.

Discussion highlighted that special education encumbrances are projected (presenter cited approximately $18.3 million in encumbrances for outplacement tuition) and that the district expects several revenue offsets including a $3.6 million special revenue item from the city and an excess‑cost grant drawdown later in the month. Members urged coordinated legislative advocacy (the superintendent and several board members noted use of the district's advocacy materials and an upcoming 'CABE Day' on the hill) to pursue adjustments to the foundation amount and to add a multiplier for students with special needs.

The board received the financial report and approved the requested budget transfers. Finance staff said they will continue to monitor accounts closely and return with updated projections as state reimbursement figures finalize.