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District staff warn equalization aid shortfall could push up property tax levy
Summary
At the June 5 meeting the board was told state equalization and categorical aid estimates will likely be lower than earlier proposals, producing an estimated $900,000 shortfall tied to special education across two years and increasing pressure on next year’s levy.
At its June 5 regular meeting, the New London School District Board of Education heard a budget preview from district staff warning that reductions in state equalization and categorical aid may force a higher local tax levy.
A staff member presenting the budget forecast said the state recently revised reimbursement estimates and that "this year's amount will end up being about 38.3%," down from earlier proposed percentages. The presenter said that change, combined with other variables, translates into roughly a $900,000 difference tied to special education funding across the two-year budget window.
"So as I started with, we're gonna start talking a lot about budget over the next few meetings," the staff member said, noting the district will use the July director report to provide updated state estimates and that the formal levy and budget schedule runs through presentations in September and adoption in October.
Board members pressed staff on how to explain the gap to the public. One board member asked, "Is there any way to get ahead of that messaging you're talking about because I think a lot of people were wildly surprised?" Staff responded that the district will include the state estimates in the July packet and that local media have previously used district materials when reporting on projects.
The presenter framed the change as a state-level funding formula issue that influences local tax limits and said the levy increase last year stemmed from similar equalization dynamics. "We could honestly say unless something changes, people's taxes will all go up in the next school year," the staff member said.
Why it matters: the levy and budget adoption timetable gives the board and district staff roughly three months to refine spending plans and public communications before the September presentation and October adoption. The board will continue budget discussions at upcoming meetings, with staff urging outreach to local stakeholders and legislators about the aid formulas.
Next steps: staff said updated state aid numbers and a more detailed levy estimate will appear in the July director report; the board will proceed through its normal budget presentation and adoption cycle in September and October.
