Note Correction about Bridgeport Board of Education Agenda Item:
Apparently without the approval of the State Board of Education or the approval of the Connecticut General Assembly, the Malloy administration is planning to provide Malloy ally, Mayor Bill Finch, with a special deal so that he doesn’t have to have the City Bridgeport meet the state law concerning their minimum budget expenditures for local education. The law is called the Minimum Budget Requirement (MBR)
Municipal leaders and taxpayers across Connecticut are well aware of the fact that in order for a community to receive state education funds they must provide a minimum level of local funding.
In that way, communities must uphold their responsibility to provide resources for local public schools.
The requirement to meet the Minimum Budget Requirement (MBR) has forced local officials in some communities to raise property taxes on multiple occasions.
But according to late breaking news, Governor Malloy, his budget director and his Commissioner of Education have come up with a unknown mechanism to try and let Bridgeport off-the-hook for providing their schools with sufficient local funding.
What makes the whole situation even stranger is that details are being released by the Mayor of Bridgeport on a Sunday and not by Malloy, the Office of Policy and Management or the State Department of Education.
The Bridgeport Board of Education is scheduled to vote late tomorrow – Monday – November 25, 2013 on an agenda item entitled “Approval of Resolution and Letter Regarding Minimum Budget Requirement, 2013-14.” The AGENDA ITEM IS NOT A MOTION to support Finch’s plan but exactly the opposite. It is a motion requesting the City of Bridgeport ALLOCATE the required funds to balance the school budget and meet the Minimum Budget Requirement. Finch’s move is actually meant to undermine the Board of Education’s expected action tomorrow.
Instead of waiting until tomorrow, the Bridgeport Mayor’s Office put out a Sunday press release outlining SOME of the details about the deal between Finch and the Malloy Administration.
But the information released to date fails to indicate how the plan could proceed without the approval of the State Board of Education or the General Assembly, the two entities with the authority to make education policy in the State.
According to a new headline the blog “Only in Bridgeport,” Finch Announces Agreement With State To Resolve Education Funding.”
The blog post adds,
“Mayor Bill Finch on Sunday issued a news release informing that the State Department of Education and the city have reached a resolution for the city to comply with the mandated Minimum Budget Requirement (MBR). News release from Finch follows that also includes a joint letter to the city from State Education Commissioner Stefan Pryor and state budget director Benjamin Barnes who worked as chief financial officer of Bridgeport schools before Governor Dan Malloy appointed him secretary of the Office of Policy and Management.
The State Department of Education and the City of Bridgeport have agreed on Minimum Budget Requirement (MBR) terms. The resolution of the MBR is as follows:
*The state recognized the level of effort made in $1.2 million worth of tangible, in-kind services to the Bridgeport Board of Education and is crediting that amount toward the FY2013-14 MBR compliance amount;
*The City also will make an additional $1.1 million contribution to the Board of Education in the form of a reduction in the Board’s required contribution for Worker’s Compensation indemnity payments for non-certified staff; and,
*The State will make an additional $1.2 million contribution to the City by the end of the fiscal year for the purpose of further supporting the Bridgeport Public Schools.
The blog post also include the “full text of the letter received by the City of Bridgeport from the State Department of Education and the Office of Policy and Management follows”
The letter from Malloy’s Budget Director and Education Commissioner reads as follows:
Dear Mayor Finch:
Thank you for your ongoing engagement with us regarding the City’s contribution to the Bridgeport Public Schools and the Minimum Budget Requirement. We all share a deep commitment to your community and its schools, and are hopeful that our discussions have led us to a positive way forward.
These discussions are especially timely today. In recent years, the State has made extraordinary financial contributions to the Bridgeport Public Schools, which we hope have helped to provide the educational resources that teachers and students need to succeed and, at the same time, have helped to move the district in the direction of budgetary stability. On the other hand, we cannot ignore the division and controversy that have continued to plague the Bridgeport public schools.
We are committed to putting these divisive issues behind us so that the newly elected Board of Education can rededicate itself to the challenges ahead on behalf of Bridgeport’s young people. I know that you share that commitment.
It is clear that the City’s funding for the Board of Education will continue to be a challenge in light of Bridgeport’s fiscal condition. We have identified a way forward that will, we sincerely hope, allow the City to satisfy its obligations, and allow the Board to operate its budget in balance for the 2013-14 school year. It is not ideal, and it will require all parties – the City, the Board, and the State – to make some contribution. But it can be sufficient to allow all parties to turn their attention from past conflicts to our aspirations for the future.
In summary, our tentative plan is to make up for the $3.3 million in MBR shortfall as follows:
1. The City has demonstrated tangible in-kind contributions in the Board’s favor over the last two years which have provided significant budget relief to the Board. The City reasonably expected that those contributions would count toward FY 14 MBR compliance. As a result, the state will credit these contributions against the MBR and adjust the MBR requirement downward by $1.2 million, once necessary documentation is satisfactorily provided to the SDE.
2. The City will make a further contribution to the Board this year in the form of a $1.1 million reduction in the Board’s required contribution for Worker’s Compensation indemnity payments for non-certified staff. This will allow the Board to redeploy existing funds budgeted for that purpose to other areas. The City will provide such detailed assurances as needed by the Board that the City will make up the claims liability, and that this contribution will not impact the Board’s future contributions to the Internal Services Fund or otherwise deplete current or future resources of the school system.
3. The state remains committed to providing assistance to fiscally challenged communities so that they can maintain support for their schools. As part of this effort, the State Department of Education will provide the City with $1.2 million by the end of the fiscal year for the purpose of further supporting the Bridgeport Public Schools. All of these monies must be appropriated by the City to the Board for that purpose prior to the end of the fiscal year. This assistance will be contingent upon the successful completion of all other components by the City of the plan laid out in this letter.
4. Finally, the City, will commit to recommending and diligently working to enact a City budget for FY 15 that complies with the MBR and all local spending requirements, and to working with the Board to develop a long-term strategy for City support of the public schools.
Again, we are hopeful that this plan, and the new resources and partnership that it represents, will serve Bridgeport’s students and help the newly-elected Board to be successful.
Kind regards,Stefan Pryor Commissioner, State Department of Education Benjamin Barnes Secretary Office of Policy and Management
Why Malloy, Stefan Pryor or Ben Barnes think such a deal wouldn’t need the approval of the State Board of Education or the Connecticut General Assembly is a mystery.
Furthermore, how Governor Malloy could give this tax break to his political ally, Mayor Bill Finch, and not make it available to property taxpayers in Connecticut’s other economically hard hit communities is also unclear.