Faced with district needs, rising costs, a diminishing special savings fund, and sun-setting grants, North Branford’s Board of Education (BOE) voted unanimously on Feb. 16 to recommend a 2023-’24 schools’ operating budget of $35,653,355 and capital budget of $936,500. The operating budget represents an annual increase of $2,917,641 or 8.913 percent.

Next, as the Town’s finance board, the Town Council will review the proposed schools’ budget, together with the Town government departments’ budget, beginning with a joint budget presentation/public hearing coming in March. Following a series of budget workshops, the council will then recommend its 2023-’24 Town Budget for the annual Budget Referendum Question vote in May. North Branford’s new fiscal year begins July 1, 2023.

Discussing Percentages and Funds

Over the past three fiscal years, the Town has approved a total of $550,000 in increased funding for North Branford Public Schools (NBPS) budgets.

In recent years, despite receiving increases that were less than requested, the district maintained a “status quo” budget — preserving existing status of programs and services — in large part by dipping into a special schools’ savings fund. As shared by Superintendent of Schools Scott Schoonmaker during BOE budget workshops on Feb. 9 and Feb. 16, that fund is now coming to the point of depletion. As one result, general fund expenditures that were covered by the fund in the past are now reappearing in 2023-’24 proposed schools’ budget general fund.

The district is also faced with the expiration of grants which supported some instructional positions; rising costs; a new teachers contract and other budget drivers. Mainly for those reasons, the BOE is seeking the requested 8.913 annual increase from the Town.

Discussing Fund 25

As discussed by Schoonmaker during BOE budget workshops, monies in the schools’ special savings fund, designated by the district as Fund 25, are collected from three sources. One source is accumulated balances left over from prior fiscal year budgets, given back to the district by the Town. Additionally, under state statutes, over the last three years, schools were allowed to hold 2% of budget monies in savings, and those monies went into Fund 25. Fund 25 also includes Excess Cost money – state payments sent to the district for education costs of students with a disability that exceeds the annual expenditure per student.

While some $1 million went into Fund 25, that money is now nearly all expended, and the remaining funds will be used by the end of the 2022-’23 school year, Schoonmaker said.

“We always combined 2% with whatever the Town gave us and our special education reimbursement. We’d couple those three funding sources, and we’d limp along to the next year. We’ve done that for three consecutive years,” said Schoonmaker, speaking with the BOE on Feb. 9. “We’ve run the money down to about $400,000, so now we’re in this predicament [where] we’ve dug this hole, and we have to get out of this hole.”

Schoonmaker noted last year’s BOE budget request to the Town sought an increase of $1,153,420 to maintain the “status quo” of current programs in place for the 2022-’23 school year. Instead, a $300,000 increase was provided through the Town budget process.

“Unfortunately, in April 2022, we received $300,000 as an increase for the current year 2022-’223,” Schoonmaker noted, in an overview shared with the BOE on Feb. 9.

“This means we started the current year needing to ‘find’ $853,420 ($1,153,420 minus $300,000). Cuts to the education budget of this magnitude would have a damaging and negative impact on our programs, our students, our staff, and beyond. To make it work, we reallocated some general fund expenditures to Fund 25.

For the 2023-’24 fiscal year, these expenditures must be moved back to the general fund. In addition, we are moving two preschool teachers and four paraprofessionals to the general fund budget. These positions are currently being funded through a grant.

In addition to salary increases based on union contracts, there are cost increases we cannot control in almost every area of the budget, including the cost of health insurance, transportation, fuel, utilities, outplaced tuition, instructional supplies, dues, and fees, and custodial and maintenance supplies, including the paint needed to line the athletic fields.

We are also asking for two new positions and four new coaches at the intermediate level.”

The balance in Fund 25 is currently at $445,702 after having expended $653,000. BOE chair Shawna Holzer asked Schoonmaker for reassurance, which she received, that the balance of Fund 25 will be expended by the end of the current school year.

BOE Chooses Proposed Budget Over Status Quo

In backing the proposed $35.65 million 2023-’24 schools’ budget on Feb. 16, the BOE set aside the option of instead supporting a $35,170,815 status quo 2023-’24 budget also presented by Schoonmaker and the district team on Feb. 9. The status quo budget preserved the existing status of district programs and services by seeking an annual increase of $2,435,101 or 7.439 percent.

Side by side, the dollar difference between the 2023-’24 status quo budget and BOE-backed 2023-’24 proposed budget is an additional $482,539.

Items requested as part of the $482,539 include two new staff hires: a new high school business teacher ($59,840), and a new high school custodial position ($50,738). Health insurance for the two new positions totals $27,000. The proposal also funds stipends for four additional North Branford Intermediate School (NBIS) athletic coaches (total expense $6,868).

In order to address needs based on current expenses, $19,900 is provided in the proposed budget for overtime. Due to grant sources expiring, $60,230 is requested for Professional Development, up by $30,533 over last year. Required reconditioning of athletic equipment (football and hockey helmets, shoulder pads etc.), previously paid from Fund 25, adds up to requiring $9,868 more for that line item.

Due to rising labor costs and field lining costs, grounds maintenance costs are rising to $57,000, a $26,000 increase over last year. Another large increase is Purchased Services, which, at $155,871 is rising by $118,447 year over year. Of that $118,447 increase, approximately $77,000 is tied to a settlement agreement with a family in district to cover special education tutoring provided by a specialist due to the district not having a specialist available.

Other areas of rising expenses in the proposed budget include a $34,885 increase for instructional classroom resources (workbooks and other consumables with about a one-year use life) and a $32,007 increase for Other Supplies (flexible seating at elementary levels, etc.). Software costs are increased by $19,029. Program, professional, and athletic team dues and fees are up by $11,772.

Driving Budget Costs

The main driver of costs in the proposed BOE budget is salaries, which add up to over 58% of the bottom line. Benefits make up 16.21% of the total budget; with the remaining 23.32% providing for teaching/learning and facility costs.

The cost of salaries and benefits include the first year of funding for the recently approved 2023-’26 contract between the BOE and the North Branford Federation of Teachers (AFT Local 3869). As previously reported, during the next three years, North Branford’s teachers will receive annual salary increases of approximately 3.5% per year, adding up to the district’s highest contractual teacher salary increases in more than a decade. The contract also provides a flat, three-year leveling of educators’ health insurance premium share. In addition, the new contract provides a revised, three-year tier system for stipends paid to teachers, coaches, and advisors leading clubs, activities, or athletic teams.

Following the BOE vote on Feb. 16, Schoonmaker thanked the BOE for its input and support of the proposed budget.

“Thank you for not only supporting but building and having really healthy dialogue and great recommendations and critiques of what you felt would make it more useful and easier to read. With every student in North Branford in mind, we thank you on their behalf,” said Schoonmaker.

North Branford Public Schools Board of Education meetings are live-streamed by Totoket TV and can be viewed at the Totoket TV Facebook page.