Proposed Budget FY26-27

To assemble a budget, we will provide stakeholders an opportunity to identify areas that they feel are inefficient or of lower priority, areas that they feel are working well, and overall suggestions on how we can modify our expenditures and programming in order to meet our financial goals, while providing the best possible education for our students. We have developed a survey to solicit feedback and suggestions about the budget at the form below. All staff, students, and community members are encouraged to take this short survey. Results will be anonymous. The survey will only ask whether you are a staff member, a student, a parent of a student, or a community member at large. 

New London Public Schools is beginning its budget development process for the FY27 district budget.  The district is faced with some major challenges this year with the expiration of Commissioner Network funding, the evaporation of and/or flat funding of other funding sources, and inflationary costs. 

Even so, the goal of the Board of Education is to maintain excellent and diverse programming for students and an excellent working environment for staff, thus living up to the district’s vision to Unite in Excellence. In addition, it is committed to minimizing any impact on our existing employees, to the best extent possible.    Therefore, we are taking a very careful look at any currently vacant positions, or any pending resignations or retirements, to see if capitalizing on attrition may be a benefit. If positions are absolutely necessary for the success of students, they will continue to be filled.

This communication will serve as a guide to provide an outline of the district’s budget development process and will highlight how students, staff, and the public can provide input into this process.

The Budget Development Process

To assemble a budget, stakeholders are asked to identify budget priorities, suggestions, and ideas. We have developed a survey to solicit feedback and suggestions about the budget’s development, accessible here. All staff, students, and community members are encouraged to take this short survey.  Results will be anonymous. The survey will only ask whether you are a staff member, a student, a parent of a student, or a community member.  We ask that constituents please complete this survey by January 7, 2026. In addition to the survey link, school principals will solicit feedback at staff meetings, coffee hours, and staff meetings over the next several weeks.  Anyone that wishes to share their ideas about priorities and cost-saving measures can contact principals directly to set up a time to be heard.

The Grounding Framework

The Board of Education has instructed the Cabinet team to prepare a same-services budget, after giving close scrutiny to what is currently funded in the CN (Commissioner’s Network) grants. 

Early calculations project an overall gap in expenditures over available and projected revenues of more than $8 million.  This is an early projection, consisting of an approximately $4 million increase in expenditures due to inflationary and contractual increases, and the loss of approximately $4.5 million in revenues from reductions or flat funding in grants and the depletion of most of the non-lapsing fund. This reduction in funding factors in the expiration of the CN grants and does not yet factor in an increase in general funds from the city. 

The final requested budget will include some reductions to expenditures and it will include some level of a requested increase in general funds from the city.  The final goal is to develop a requested budget in which total projected and requested revenues equal total projected expenditures.

The CN grants are in their 5^th year, and consistent with the original grant terms, the funding expires after the current year. Therefore, our first task is to identify costs that can be reduced or eliminated that are currently funded in CN.

After identifying reductions in conjunction with the expiration of CN we are instructed by the BOE to carry over the same positions and funding allocations across departments and schools as the approved FY26 budget and apply inflationary and contractual increases in order to arrive at the cost of a same-services budget. We know that fully funding this will be a huge challenge.  Therefore, in addition to completing the exercise of “rolling up” the same-services budget as draft proposal #1, we will also take time to identify proposals for some cost savings, anywhere that we feel we can realize savings with minimal negative impact to programming.

The Board of Education has also tasked us to identify what the cost would be to expand Summer school programming back to the level that it was run in the summer of 2024, and separately the cost to expand afterschool programming back to the level of programming that we provided last year.

School Principals are tasked with working with their staff and families to review their current year budgeted expenses, to identify both current needs as well as where efficiencies might be able to be made.  After engaging their staff and families in conversations, Principals/Department Leaders are asked to submit their recommendations for the FY27 budget by Friday January 9^th.  At the same time, the Business Office is researching enrollment projections and grant revenue projections to update the estimated resources that will be available for FY27.

On January 13^th, the Cabinet team will review the results of the Budget Survey, and the Principals’/Department Leaders’ SY27 budget requests. Continued conversations will occur ensuring alignment to students’ strengths and needs, to strategic goals outlined in our District Improvement Plan, and to each school’s goals, outlined in their School Improvement Plans.

The following week, the Business Office will provide a drafted SY27 Budget based on the requests from Principals/Directors, discussions in cabinet, and on our grant revenue projections.  This draft will indicate the size of the gap between estimated revenues and requested expenses. This amount would otherwise be considered as the request for additional funding from the City of New London. However, the Cabinet team will adjust requests, as necessary, to bring that request more in line with what a reasonable increase in the general fund appropriation would be.

The product of this revised draft budget will be reviewed with each school Principal/Department Leader and a final Proposed Budget Book will be produced and transmitted to the Board of Education on February 11^th.  Presentations and budget workshops will occur with the BOE over the following two weeks, with a public hearing being held on Monday, February 23^rd. Members of the public are invited to speak to the BOE at this public hearing.

During the BOE review process, beginning in February, a second survey link will be posted on the BOE website seeking feedback on the proposed budget.  The proposed budget will be available online, and students, staff, parents and the public are encouraged to share thoughts. Additionally, questions about the budget can be submitted through this link and work will be done to answer these questions at the following budget workshop or meeting.

The BOE may make changes to the proposed budget by a majority vote.  March 2^nd is the date that the BOE has scheduled to make changes and/or choose to approve the final budget.  If the BOE does not come to agreement on March 2^nd, additional budget meetings will be scheduled for further discussion and research.  The final BOE approved budget must be submitted to the Mayor by March 15^th, so the latest that the BOE can approve the final budget is Monday March 9^th. 

Once the final BOE approved budget is submitted to the Mayor, he will draft his proposed budget for the City and submit it to the City Council, along with his recommendation for the total bottom line amount he is suggesting for the Education General Fund Budget.  The Mayor and/or the City Council may choose to increase or decrease the education general fund budget, but only the BOE may decide what line items to change in the budget.

The City Council will most likely deliberate on the budget in April and possibly into May. The public may also attend these City Council meetings and will be provided with an opportunity for public comment there too. The City Council has the final say on the bottom line of the Education Budget, through a majority vote.

One additional step in the budget’s approval process must be considered.  The budget is split into two separate actions – City and Education.  The City Board of Finance must meet to vote on each of these budgets, no later than 60 days prior to June 30^th.  The Board of Finance’s vote sets the maximum that each of these budgets can be. 

The BOE members are provided with a proposed budget that the City Council has likely reviewed to some extent.  The expectation is that the Board of Finance will use this proposed budget as a starting point. The proposed budget may not reflect changes that the City Council is in the process of discussing and the education portion may be for a different number than what the BOE requested. The Board of Finance is allowed to set a ceiling that is higher than the proposed budget, but this would not oblige the City Council to pass a budget that is that high.  While the City Council can further reduce, they cannot further increase either the City or the Education Budget to an amount that is higher than what the Board of Finance has set.

Thank you for your time and attention to the steps in our SY27 Proposed Budget Development over the next few months. Your attention to this process and your input is appreciated. Frequent updates will be shared with you.

If you have any questions regarding the budget development process, please reach out to me directly: funkr@newlondon.org.