Preliminary Norwich school budget up by 6.2%

Officials cite increases in tuition, health insurance

Norwich — The revised preliminary 2016-17 school budget shows a 6.2 percent or $4.6 million increase – more than the 4.5 percent initial increase that Board of Education members saw in an earlier version three weeks ago.

Superintendent Abby Dolliver and School Business Administrator Athena Nagel presented the revised figures to the Board of Education Budget Expenditure Committee Monday. Nagel said the biggest increases are for tuition costs, up by $3 million including special education costs, and health insurance, up by $2 million. Those increases erased savings in other areas of the budget.

The total $78.6 million budget calls for a $4.6 million total spending increase compared to the current $74 million budget.

The Board of Education is scheduled to vote on a final budget March 8.

The school system is self-insured, and Nagel said while that has saved money over the years with lower premium increases, the school system experienced a high number of claims and several “catastrophic” claims this year. The insurance policy requires the district to maintain a reserve totaling 2.5 months of costs, and the reserve has been depleted, Nagel said. She budgeted Blue Cross major medical costs at $7 million, an increase of $2 million.

Tuition for Norwich Free Academy, numerous other magnet schools, high school choices and special education programs is expected to increase by $3 million to a total of $30.7 million. But Nagel said that increase includes about $600,000 shifted from a “purchased services” account to pay for the district’s contract with Natchaug Hospital to run the Hickory Street School, the city’s elementary-age special education school.

Dolliver said combining classes to eliminate some teaching positions would be difficult, since many classes already have more than 20 students. She estimated only about six classes could be combined.

Nagel calculated savings if the school year was cut from 182 days to 180 days at $ 161,059 per day for all staff, meaning a two-day cut would total $322,118.

School Business Administrator Athena Nagel said the school system is self-insured. While that has saved money over the years with lower premium increases, the school system experienced a high number of claims and several “catastrophic” claims this year.

Nagel said none of the major employee contracts are expiring this year. Contracts with teachers, administrators, secretaries were approved last year, with the 2016-17 school year being the second year of the contracts. Only contracts with custodians, para-educators and nurses are set to expire June 30.

Nagel said the budget includes a 2 percent salary increase for all non-union personnel, but some grant-funded positions might have lower increases. Nagel said most of the raises are set to match union increases budgeted for the year.

Board of Education Chairman Aaron “Al” Daniels addressed Alderwoman Stacey Gould, the only alderman in attendance, and asked that the school board be considered the city’s “largest subcommittee,” to work together on the budget to end the annual bickering that hurts students.

“I don’t want to put this on the backs of our kids,” Daniels said, including possible larger class sizes and a shorter school year.

“We have contractual obligations we have to meet, so from a business perspective I look at some of the things we have some control over,” Gould said.

She asked if the board could find ways to bring down insurance, heating and bus fuel costs.