Superintendent Recommends 4.6% Budget Increase Driven by Special Education, Salaries and Benefits

LYME–OLD LYME – Superintendent of Schools Ian Neviaser this week recommended a $41.5 million 2026-27 spending plan, representing a 4.61% increase driven by salary, health insurance and unanticipated special education costs.

The superintendent’s 2026–27 budget is up $1.8 million from the current budget. The Region 18 Board of Education is expected to vote Feb. 4 following a public hearing.

Director of Special Education Melissa Dougherty on Wednesday told the Region 18 Board of Education that out-of-school placements are a key factor in her department’s $2.5 million budget, which is up $519,428, or 26.3%, from the current year.

She said the district currently has eight students whose special needs require services outside the district, double the number originally budgeted for 2025-26. That total is expected to remain the same in the coming year.

“This year we did have a fair number of students who moved in who already were in specialized placements, so some of that was really completely unanticipated and unexpected for us,” she said.

Tuition costs for students in public special education programs outside the district are projected to rise from $90,000 this year to $377,218, a difference of $287,218. Private placement costs are slated to decrease by $79,357, to $693,203, as students graduate or return to district programs.

The proposal includes a $273,248 increase in special education transportation spending.

Numbers presented by Dougherty showed 0.63% of Lyme-Old Lyme’s special education students attend schools outside the district, compared to 0.98% of the special education students in Waterford, 0.94% in East Hampton, 0.82% in East Lyme and 0.39% in Old Saybrook.

Salaries and Benefits

Neviaser said the proposed $17.3 million line item for teacher and administrator salaries is up $635,323, or 3.8%, over the current budget.

He put it this way: “The big money is in people.”

Health insurance costs through the Eastern Connecticut Health & Medical Cooperative are projected to rise by $357,949, based on an estimated 15% increase that may change as updated monthly claims data become available. He said claims are up across the regional pool.

The budget restores a part-time payroll clerk to full time and adds a part-time special education coordinator. It also includes permanent funding for an elementary music teaching position that was nearly eliminated last year but was saved through one-time budget adjustments.

The recommended budget reflects a decrease of five noncertified staff positions primarily affecting instructional assistants.

District budget documents show enrollment is expected to go down by about eight students. Neviaser said most of the decrease affects the high school.

Pointing to reductions in high school science offerings due to retirements, he called out the departure of longtime educator Richard Fisler as a “huge loss.”

He said the high school will likely not offer an Advanced Placement computer science course because nobody but Fisler has the necessary certifications.

Facilities

Facilities Director Ron Turner presented a $2.6 million proposed budget for the district’s buildings, up $123,628, or 8.3%, from current spending.

The facilities proposal includes $322,550 in capital projects, including replacing hot water heaters at Lyme School and the middle school, repairing the rear concrete entry at Lyme School and replacing the security alarm system at Mile Creek School.

“The hot water heaters, we were surprised to discover, are not considered part of the heating system, but do need to be replaced,” he said.

The ongoing renovation project involves upgrades to heating, cooling and security systems in four schools, plus the addition of new classrooms at Mile Creek School. Voters in late 2022 authorized spending up to $57.5 million on the project, though the district will save about $17 million due to grant funding and lower than expected interest rates.

Turner said replacing the security alarm in the capital budget rather than as a renovation expense avoids bonding and associated construction costs, keeping the price at about $17,550 instead of an estimated $150,000 if included in the renovation.

Despite three planned projects, capital spending is down $36,650 from the current year.

He cited energy costs as the “big unknown,” with electricity expenses projected to rise by about $76,000, to $260,000.

Debt service, which drove a 7.99% increase in the 2025–26 budget due to the renovation project, comes in at $4.3 million in the superintendent’s recommended budget. That figure is up $54,003 from the current year, or 1.3%.

How Lyme-Old Lyme Stacks Up

Neviaser pulled data from nearby districts to show how his recommended budget increase compares regionally. Madison’s proposal is up 4.24%, followed by Westbrook at 5.61%, Clinton at 5.88%, East Lyme at 6.79%, Guilford at 7.13% and Old Saybrook at 7.99%.

He said a state accounting of per-student spending, which does not include debt service, put the Lyme-Old Lyme district at $25,142 in 2024–25. That’s an average increase of 2.15% over four years.

Out of nine area districts from Guilford to Waterford, Lyme–Old Lyme ranked seventh in per-pupil expenditures. Westbrook spent the most in 2024–25 at $34,207, while Guilford spent the least at $23,083. East Lyme spent $24,209 and Old Saybrook spent $28,165.

One board member asked whether the budget could be reduced further.

Neviaser said getting the increase below 4% would require about $235,000 in reductions.

“Could we delay projects? We’ve done that before and that’s how we ended up spending $47 million pretty much rebuilding a brand new high school,” he said. “So that has not been well received in the past, nor would I recommend that.”

He pointed to a conversation on cost-cutting measures at last week’s school board meeting, when officials described the idea of purchasing more vans, rather than relying on contracted bus services, as a non-starter. The same went for options like offering early retirements.

“When we run all those numbers, none of those come up as significant savings, or sometimes savings at all,” he said.

He reiterated “people and programs” are the biggest drivers when it comes to budget increases. That means any reductions are likely to result in fewer teachers and course offerings, as well as larger class sizes.

Asked by another school board member what might be added if there were more money to spend, Neviaser referred to his recommended budget as presented.

“I feel like what we’ve asked for is what we need to maintain the high standard that we have here,” he said.

Editor’s Note: Click here for Wednesday’s budget presentation.