New London Ordered to Use Education Funds for Schools

Aug. 3–NEW LONDON — A lawyer for the state Department of Education has told the city it must pass on to the public schools a $600,000 increase in state education funds for this year — money the school system plans to use for rehiring staff and repairing other cuts in the budget.

Last year New London got $20 million in Education Cost Sharing funds, and this year the state has increased that to $20.6 million.

A law enacted this year requires municipal governments to give the entire amount of increase in ECS funds to their school systems or forfeit twice that amount. But some, including City Manager Richard Brown, have argued the law is “bad legislation,” is unclear and fails to take into account a calculation of all school spending, including construction.

The school board, Superintendent of Schools Christopher Clouet and state education associations have argued the law is explicit in requiring any ECS increase to go to the schools.

In a letter dated July 29, Mark Stapleton, the state education department’s chief attorney, said Clouet has correctly interpreted the law, which he said was created to ensure that the funds have a “measurable impact on the quality of education in New London.”

“I’m very pleased that Mr. Stapleton has written such a clarifying letter,” said Clouet. “The state sends the city about $20 million of a $35 million school budget. This year, it sent another $600,000, which is extra money from the state. It does not take money out of the pockets of local taxpayers.”

The increase of $600,343 could play a significant role, as the school board earlier this year was forced to cut nearly 18 jobs and many programs to meet a spending mandate of the City Council.

Carrying out resolutions passed at the time of the cuts, the school board plans to use $325,000 to rehire art and music teachers and a city police officer assigned to schools. The board would then vote how to allocate the remaining funds. Some have recommended restoring preschool.

Brown said Stapleton’s letter was a “cause for concern” because it was issued in rapid response without discussion first with the city.

The city manager said he understands the intent of the law. But he said it seems to penalize any city that commits its own funding increases to schools, since legislators usually finalize ECS funding after municipalities have passed their budgets, as they did this year.

He said the law is also troubling because the city this year will receive about $700,000 less from the state in municipal aid than last year.

“What the state seems to be saying is, ‘We can mandate spending in one category, while reducing revenue in another,’ ” said Brown. “It seems to hand down another mandate with no relief.”

Stapleton said the state is trying to determine whether other communities are encountering the same problems complying with the law. The department is asking municipalities to file a form comparing local contributions to education and ECS increases.

Stapleton said questions over ECS have been complicated in New London by a move involving school nurses. In May, the city merged health department employees with the regional Ledge Light Health District and placed school nurses, formerly health department employees, under the auspices of the school board. The city then transferred $667,130 to the school board’s budget.

School board members had worried that the city would characterize this transfer as part of an increase in education funding. In his letter Stapleton said “this action will not suffice” and said “increasing the board’s appropriation and at the same time assigning it new duties costing a like amount will not satisfy the legal requirement.” He said the ECS increase must be in addition to the funds appropriated to cover expenses for the nurses.

Brown said he will ask the school and city finance directors to review their calculations. Clouet said he hopes he and the school board can work together with the city to come to a resolution.

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