Old Saybrook School District proposes 7.99% budget request as health‑insurance costs surge

The Old Saybrook School District superintendent presented a preliminary FY27 budget to the board, proposing a working request of 7.99% above the current year and saying health‑insurance increases and a larger share of high‑needs students are the primary cost drivers.

The superintendent told the board the district’s fixed costs alone would require a 6.21% increase if nothing else changed, and that staff and program requests initially totaled roughly 11.32% before reductions. “We are self‑insured,” the superintendent said, calling health insurance “the canary in the coal mine,” and explaining that a roughly 15% industry trend combined with about an 8% shortfall from last year’s claims produced a 23% projected increase in health‑insurance costs at this stage of planning.

The presentation also highlighted enrollment and student‑need trends. The superintendent cited state figures showing enrollment declined from 1,031 (last Oct. 1) to 990, while students with individualized education plans rose from 167 to 180. He said the district’s percentage of high‑needs students is up, which increases per‑pupil costs even as headcount falls.

To align spending with the board’s new strategic plan, the superintendent proposed a three‑tier approach that preserves essential/sustained services, funds priorities tied to the strategic plan, and invests in curriculum development. He said next year will be the “year of English language arts,” with funds requested for new curriculum materials, dedicated time for teachers to write and collaborate during the workday, substitutes, training and building‑level point people to coach implementation.

On capital and grants, administration showed about $400,000 in capital‑operating items tied to strategic priorities rather than large infrastructure projects; larger projects such as HVAC or roof work remain on a separate facilities list. Federal entitlement grants (approximately $450,000 in the presentation) were shown declining with enrollment; the superintendent said federal dollars flow through the state and the district has not seen an actual federal reduction, only the enrollment effect.

The superintendent urged caution: the 7.99% figure is preliminary and will be finalized as health‑insurance claims data and other information firm up. He said the board will present a recommended budget to the town’s Board of Finance on Feb. 3 and noted a public hearing is scheduled for March.

What’s next: the board will review the presentation again at its next meeting, with district staff on standby to answer detailed line‑item questions. Administration said it will upload the full budget book PDF and make hard copies available to board members.

Quote: “You can’t forget why we do this,” the superintendent said, urging the board to keep student outcomes front and center as it considers the numbers.

The board did not take a final budget vote at the meeting; members were asked to digest the packet and submit follow‑up questions.