BOE Finance Commitee Gets Briefed on Stimulus Funding and Questions Legal Fees

Updated with background documents.  See below.

Nearly 37% of Norwalk students receive free and reduced lunch according to information presented at the Board of Education’s Finance Committee meeting held Monday night.

Dr. Dan Cook, interim CFO for the district, told the committee that the central office had made a big push to sign up as many eligible households as possible before the state’s October 1 deadline. The figure is up 3 percentage points from last year.

The number of students receiving free and reduced lunches affects how much funding a school receives from the Federal Government under Title I of the No Child Left Behind Act (NCLB)



At the meeting the Finance Committee also instructed school officials to begin preparing the district’s 2010-2011 budget in anticipation of severe financial constraints that will be imposed by the Board of Estimation and Taxation.

“The Superintendent has advised us that the budget will need to be increased by 5.6%, but in reality we are hearing from the BET that they are expecting a zero increase budget,” said committee chair Steve Colarossi.

Dr. Cook told the committee that Dr. Papallo had asked principals and department heads for input and suggestions for cost savings. He said about 12 principals had responded in writing to the request although some had asked if they could add items. Dr. Cook said that additional meetings would be held before Christmas.

“People have to recognize that we are in an extraordinary year,” Dr. Cook told the committee. “In three years the situation can turn around and the economy can improve. Pensions will have recovered and so the city can step back in with the proper level of funding. We are stressing those points.”

Mr. Colarossi suggested that the central office prepare budget documents in more business-like format and exclude “factoids” that played-up the benefits of certain initiatives.

During Monday night’s meeting a new format for public participation was introduced. After each item on the agenda Mr. Colarossi invited parents and school officials who were in attendance an opportunity to make comments or ask questions.

Dr. Lynne Moore, principal of West Rocks Middle School, said that she disagreed with the budget process that the central office was putting together. “I would hate to come [to the BET] from a point of weakness where we are putting together our budget based on what’s stated in the newspaper. We should be advocating for what we need.”

Former BOE board member Richard Fuller who was also in attendance as part of the “Board Watchers” group agreed with Dr. Moore. “We need to get a true understanding of the cost of what is mandated,” he said. “As board members you have to have a clear understanding of what you have to do and what you can do. Board members are advocates first. You should have clear evidence of what the schools need.”

In addition to the budgeting process, the Finance Committee began a review of the District’s legal fees. According to documents presented by Dr. Cook $554,311 was spent on legal fees in the 2008-2009 school year although only $356,000 was budgeted – a overage nearly $190,000.

This year the BOE expects to spend $400,000 on legal fees, but has already spent $174,000 leaving $225,240 for the remainder of the year. Next year $500,000 is budgeted.

In questioning Dr. Cook, committee members focused on the fees being charged by the various law firm the BOE employs. Some law firms accounted for their time by referencing specific matters and lumping other charges in a “general” category.

Dr. Cook also told committee members that six central office administrators, the assistant Superintendent and the Superintendent were authorized to request legal information and incur legal fees. For more on the legal fees see The Hour's story.

Dr. Cook reported that the BOE has received nearly $2.1 million in grants from the Federal Government as part of the Obama Administration’s stimulus plan. The monies which are a part of the American Recovery and Reinvestment Act of 2009 were divided into three parts.

The first part of the funding which Dr. Cook described as a “book keeping item” is $1.4 million from the State of Connecticut Education Cost Sharing Grant. He explained that normally nearly $10 million inECS funds are sent directly to the City of Norwalk and allocated to the BOE. This year the state fell short of funding by 14% but was able to access Federal funds to make up the shortfall. Thus the BOE’s money is coming from two sources – a reduced amount from the city and the remainder from the state.

The second portion of ARRA money totaling nearly $1.1 dollars is part of the funding from the Individual with Disabilities Education Act (IDEA). With these funds the BOE is hiring seven special education teachers, a psychologist, and four education aides. Many of these positions were specified in the CREC and Cambridge reports issues last year by outside consultants who evaluated Norwalk public schools

The funds will also be used to purchase a host of consultative and assessment services for teacher training and development. Instructional supplies and equipment will also be acquired with the funds.

The third portion of ARRA funds totaling $1.1 million are part of NCLB Title I funding. Half of this money is being spent by the Administration on items mandated by the Federal Government such as professional development. The other half is being allocated to 9 elementary schools in the district based on the number of students that qualify for free and reduced lunch. The majority of this money is being spent on salaries and benefits for aides and tutors and for instructional supplies.

Near the end of the night’s meeting a group of Norwalk parents who send their children to Rogers Middle School in Stamford asked the board to help fund a bus that would transport the children there.

According to parent Cathy Lesko, 37 Norwalk students attend the inter-district magnet school. Currently parents drive their children 40 minutes each way although some car pool.

Dr. Cook told the board that although the district is under no legal obligation to transport students to Rogers he would support the provision of a bus if it were revenue neutral. He said that the state would provide Norwalk with a grant of $1,300 per child per year. He said that a bus with an aide costs 77,000 but that 60 children would be needed to fill the bus.

The committee asked Dr. Cook to speak with school officials in neighboring towns to see if they were willing to put students from their town who attend Rogers on the bus.

Background docs:

click here for  Legal information, 2008-09 budget and expenditures, price structure of 2 major firms that are used

click here for Review of American Recovery Reinvestment Act -ARRA, 3 parts: ECS (Educational Cost Sharing), IDEA (Individuals with Disibilties Education Act) and Title I