ANSONIA PUBLIC SCHOOLS 42 GROVE STREET ANSONIA, CT 06401 (203) 736-5095 FAx: (203) 736-5098 August 8, 2018 PRESS RELEASE For Immediate Release ANSONIA ~ The State of Connecticut today notified the City of Ansonia thet it illegally reduced the Ansonia Board of Education budget by $600,000 during the 2017-18 school year. The budget reduction resulted in a violation of the City’s Minimum Budget Requirement in the current fiscal year unless the city appropriates an additional $600,000 to the Board of Education. ‘The letter, written by Peter Haberlandt, Director of Legal & Governmental Affairs for the State Department of Education, further notifies the city that the city’s failure to meet the Minimum Budget Requirement for the 2017-18 school year may result in a reduction of $1.2 million in education grant funding that the city receives. Section 10-262j of the Connecticut General Assembly outlines the requirements for cities to meet the Minimum Budget Requirement. “For the past several months, we have been asking our city to restore the money it cut out of our budget in January 2018,” Dr. Carol Merlone, Superintendent of Schools, said this aftemoon, “Now, the State of Connecticut is directing the city to do so.” ity. Habelandt’s letter was directed to Mayor David Cassetti, On Aug. 7, 2018, a separate letter written by Kathy Demsey, the Chief Financial Officer for the State Department of Education, ‘was sent to Dr. Merlone, notifying her of the city’s failure to meet the Minimum Budget Requirement. Inits letter to Mayor Cassetti, the State offered to host a meeting next week in order to work toward a resolution. In June 2017, the Ansonia Board of Aldermen approved a Board of Education budget of $31.8 million for the 2017-18 year. In January 2018, the Board of Aldermen cut that budget by $600,000, to $31.2 million. In June 2018, the Board of Aldermen approved a school budget of $31.2 million for the 2018-19 year. A total of 17 teachers were laid off, and additional cuts were made to administrators, athletics and other school costs. Dr. Merlone vowed to restore as many positions as possible once the city appropriates the funding directed by the State of Connecticut. ‘The two State Department of Education letters are attached to this press release.Ker, STATE OF CONNECTICUT aC iy DEPARTHENT OF EDUCATION August 8, 2018 By E-Mail and Regular Mail Mayor David $. Cassetti City of Ansonia 253 Main Street Ansonia, CT 06401 Dear Mayor Cassetti I write to advise you that the Connecticut State Department of Education has determined that (1) the City of Ansonia did not meet its statutory Minimum Budget Requirement (MBR) for the 2017-18 fiscal year and (2) will not meet its MBR in the current fiscal year unless it appropriates an additional $600,000 to the Ansonia Board of Education. As set forth in the enclosed letter from Kathy Demsey, the Department's Chief Financial Officer, to Dr. Carol Merlone, Superintendent of Schools, the City’s failure to meet its MBR for the 2017-18 fiscal year may result in a reduction of its ECS grant by two times the amount of the shortfall, $1.2 million, in the 2019-20 fiscal year. The City would remain statutorily obligated to meet its MBR and, thus, would be required fo make up the loss in state revenue with local funds, In addition, the Department's position is that because the City's MBR is $31,860,484, its, appropriation of $31,260,484 to the Board of Education for the current fiscal year will result in a failure to mect its MBR in the current fiscal year by $600,000. In the Department's experience, the vast majority of budget disputes between municipalities and their boards of education are resolved prior to enforcement action by the State Board of Education, The Department strongly urges you to work toward such a resolution, and, to that end, we are prepared to host a meeting with representatives of the Department and the Ansonia Board of Education in the very near future. While it is the Department's hope and expectation that these matters will be resolved, the Department is prepared to recommend that the State Board of Education take enforcement action pursuant to Sections 10-4b and 10-262i(e) of the Connecticut General Statutes, In addition to the Section 10-262i(e) forfeiture penalty discussed in Ms, Demsey’s letter, the Department is prepared to recommend initiation of a Section 10-4b proceeding at the September 5, 2018 meeting of the State Board of Education, The following dates are available for a meeting with Department and Ansonia Board of ‘Education representatives: Tuesday, August 14", after noon; Wednesday, August 15", after 1:00; Thursday, August 16", after noon, Box 2219 © Hactford, Connecticut 06145, An Equal Opporiunicy EployerMayor David S. Cassetti August 8, 2018 Page 2 Please contact Mildred Pagan to confirm a meeting date that would work for you and your staff. Ms, Pagén can be reached at mildred.pagan(@ct.gov or (860) 713-6520, ‘Thank you. Sincerely, ee) Peter M. Haberlandt Director of Legal & Governmental Affairs PMEH/mp ce (by E-mail): John Marini, Esq., Corporation Counsel, City of Ansonia Ati J. Hoffinan, Esq., Cohen & Wolf, P.C. Vincent M. Marino, Esq., Cohen & Wolf, P.C. Barbara M. Schellenberg, Esq., Cohen & Wolf, P.C. Dr. Carol Merlone, Superintendent, Ansonia Public Schools Dr. Dianna R. Wentzell, Commissioner of Education Allan Taylor, Chair, State Board of Education Ben Barnes, Secretary, Office of Policy and Management, Enclosure