Gov. Dannel P. Malloy will propose sweeping changes Wednesday in the state's school construction program - reducing reimbursements for magnet schools and new public schools.
School construction is a key part of the budget as one of the state's most expensive programs, costing an average of $690 million per year in bonding over the past six years. The projects currently account for more than half of all bonding projects statewide.
Since it often takes years to design and build a school, there will be no immediate savings to the state in the two-year budget, state budget director Ben Barnes told The Courant. But the proposals would eventually save money in the long-term if the Democratic-controlled legislature approves the changes.
The sweeping changes will be only one aspect of a state budget that is expected to include tax increases and spending cuts to close a projected deficit of $3.7 billion in the fiscal year that starts in July. Malloy has so far avoided providing details about the expected tax increases, including hikes in the state income tax.
"There's a lot of changes in this budget, and this is one of them,'' Barnes said of school construction.
Prompted by the Sheff vs. O'Neill school desegregation ruling, the state currently pays 95 percent of the costs of building a new magnet school that would attract students from multiple towns. Malloy is seeking to reduce that reimbursement level to 80 percent. In Hartford, by court order, the reimbursement rate by the state is 100 percent for magnet schools.
In addition, he would reduce the reimbursement rate that is currently set on a sliding scale from 20 percent to 80 percent. As such, the state currently pays 20 percent of the costs for a new school in wealthy towns like Greenwich and 80 percent of the costs in poor communities like Hartford and Bridgeport. Malloy is proposing to reduce that sliding scale to 15 percent to 65 percent for new construction.
The rate for renovations would continue at 20 percent to 80 percent - thus providing an incentive for renovation instead of new construction.