Norwalk BET approves FY27 operating budget after debate, cuts BOE increase to 4%

Norwalk's Board of Estimate and Taxation on Tuesday evening approved a revised FY27 operating budget after a three-hour virtual meeting that featured a detailed presentation on pension assumptions and a close, 4-3 vote to reduce the Board of Education's proposed increase.

Mayor Smith opened the meeting by thanking department chiefs and budget staff for their work and said the revised plan balances rising health-care costs, six recently negotiated union contracts and the property revaluation. “We have done everything we can to reduce spending and make the most of every penny in this budget without risking public safety or cutting back on services for our residents,” Mayor Smith said.

Jared, the city's budget staffer leading the presentation, told the board the city's new actuary recommended raising the pension discount rate to 6.75% (from 6.5%) and extending the amortization schedule for police and fire liabilities to 15 years with a layering approach. Jared said those assumption changes increase funded ratios by roughly 3 to 5 percentage points and reduce the annual required contribution, producing about $3,069,000 in savings that were folded into the mayor's revised numbers.

Board member Troy moved to amend the Board of Education increase from the previously proposed 4.91% (often discussed as 4.9%) back to 4.0. Troy argued the city faces unsustainable tax pressure and that a lower increase would ease the burden on taxpayers. “A 4% increase,” Troy said, urging the board to adopt the lower figure.

School officials and other board members pressed back. Dr. Estrella warned that cutting the schools below the 4.9% figure would force reductions in personnel and programs, saying that not funding at the higher level "will put us in a predicament where we will have to further reduce essential personnel that we need." Mayor Smith and the superintendent emphasized the tradeoffs involved between fiscal prudence and preserving school services.

After discussion, the BET passed Troy's amendment 4-3. The board then debated a series of city-side line-item amendments: removal of a $10,000 Harbor Commission grant (approved), an adjustment to show a $100,000 transit authority item funded from grant sources (approved to be shifted rather than eliminated), and several other proposed cuts that were discussed and either withdrawn or failed on the floor.

In the final tally presented by finance staff, the Board of Education allocation at 4.0% equals $257,082,548; the city-side operating budget after approved amendments totaled $221,168,403 (about 7.92% on the city side); the blended operating total was shown as approximately $478,250,010, representing a blended rate of about 5.78%.

Chair Abrams said the board would send the approved budget numbers to the city council and asked finance staff to provide a follow-up report on the city's fund-balance ratio. The board also asked city staff to provide greater granularity on Community Services grants at an upcoming meeting. The chair moved to adjourn and the meeting ended afterward.

Votes at a glance

- Amendment to set Board of Education increase at 4.0%: passed, 4-3. - City operating budget (revised, with amendments): approved; city-side total $221,168,403 (7.92%). - Harbor Commission grant reduction ($10,000): approved. - Transit authority $100,000 reclassification to grant-funded source: approved to reallocate funding (line item removed from department-funded base). - Registrar of Voters cut ($400,000 proposal): failed.

What to watch next

The BET asked finance staff to deliver a fund-balance ratio update and asked Community Services and other departments to provide itemized backup for large grant line items before the council's review.