Proposal: No tax hike, no extra money for schools
Latest city budget plan comes after federal stimulus funds fill in gaps
NORWALK — Thanks to federal stimulus funds filling in the gaps, residents may not see the city raise taxes next fiscal year. But those same funds are also the reason schools won’t see a budget increase, according to the latest proposal.
A zero percent tax increase in Norwalk’s operating budget was approved by the Board of Estimate and Taxation Monday night. About $14 million of the $39 million the city was granted by the federal government’s American Rescue Plan will be used to offset any potential hike.
The budget also calls for no increase to the Board of Education’s operating budget, given that the district is getting $27.5 million from the stimulus plan split between 2021 and 2022, Norwalk Chief Financial
Officer Henry Dachowitz said. Removing the funds would bring the board’s budget from the recommended $212.6 million to $208.5 million.
Aside from the legislative department, whose roughly $17,000 recommended budget was eliminated altogether, the BOE will be the only department without a budget increase next year, according to the documents.
“What we are proposing is a zero percent increase for the Board of Education, with the understanding that they would use their American Rescue Plan funds to somehow compensate the increase they’re anticipating,” Dachowitz said. “The schools and their Board of Education determine how they utilize that $27.5 million.”
Dachowitz said the education board’s CFO Tom Hamilton was understanding of the decision — if not exactly a fan of it — but is concerned about the fallout that may arise in three years after relying on the one-time funding for two years.
“His point, which has been made before, is that this is a temporary, one-time funding for one fiscal year,” Dachowitz said. “His concern is in two years’ time, the amount of increase will be a multiple of what it might be this year.”
When pressed on the effect the funding decision may have on the BOE, Dachowitz said he and Mayor Harry Rilling decided to put the city’s share of federal funds toward what was best for the citizens, which they considered to be a lack of tax increase.
Another factor in the decision not to raise the BOE’s budget was the anticipated efficiency study of city and school expenses set to take place later this year. When the study is completed, ideally system revisions will subsequently be made, increasing savings for both groups, Dachowitz said.
“The general public would expect the city and Board of Education to use the funds in a manner that would reduce costs, yet fund all the services we need,” Rilling said. “Not to do that would be sending the wrong message to the public.”
Throughout each step of the budgetary process, Norwalk parents have expressed concerns regarding potential staffing cuts and program eliminations that would result from a lack of funding for schools.
Mandy Singh, mother of a Cranbury Elementary School fourth-grader, said a recent public hearing that her son began band this year and she is worried if the BOE decides to cut the music program.
“I cannot imagine the BOE may have to cut the band program, so next year he may not be playing again,” Singh said. “That may be the end of his saxophone career, at fifth grade. If the city will not invest in public school system, families like mine will ultimately leave Norwalk.”
Parents have called for the Common Council and BET to increase the schools’ budget to the requested 4.6 percent.
The district has said this “modest increase” would cover a 2.7 percent increase to staffing needs and meet contractual obligations to teachers, paraeducators, administrators, custodians, nurses and other staff; help mitigate learning loss resulting from the COVID-19 global public health crisis; maintain in-district programs and services offered to special education students and fund the resources needed to reduce disproportionality and provide equity in education for the benefit of all students.
Use of the funds specifically dictates they should be put toward prevention of layoffs, Dachowitz said.
“We don’t have any say in how they allocate their dollars, but hope they would use the funds in a way that benefit all the school programs,” Dachowitz said.
In all, Norwalk will receive about $66 million of the $1.9 trillion approved by Congress.
The operating budget will next move to the Common Council for consideration, with a budget cap to be set at Tuesday’s meeting.