Magnet School Financials

In summary, the current shift in state laws makes this an especially risky time to establish a new magnet school. This proposal involves substantial financial risk, and the cost of subsidizing the education of out-of-district students is considerable. Additionally, state reimbursement does not cover the full educational expenses for these new out-of-district students.

The overarching financial theory is that the school budget will experience a substantial increase, largely driven by the costs associated with the magnet school program. As long as the magnet school program remains in place, Colchester is required to cover the full expense of the program upfront. While the state does provide financial relief through reimbursement grants, these funds are not disbursed until after Colchester has already made the expenditures. This arrangement means that Colchester assumes the initial financial risk, as it must spend the money first and wait for the state funds to arrive later. Additionally, the amount of reimbursement Colchester receives from the state is determined by the number of students enrolled in the magnet school program, with more students resulting in higher reimbursement.

When the Board of Finance determines our taxes (mill rate), they will have to carefully balance the increased spending on the magnet school program with their projections for reimbursement from the state’s Department of Education. The Board must consider both the immediate financial burden on the town’s budget and the anticipated state funding that should eventually offset the costs. This balancing act will be crucial in setting a tax rate that adequately supports the increased expenditures while accounting for the eventual reimbursement, all while considering the fluctuating number of students in the magnet program.

The financial risk associated with the magnet school program is significant, primarily due to five key factors: front-loaded static costs, uncertain out-of-district enrollment, historically low annual increases in state reimbursement, changes in state law, and the long-term commitment to students.

1. Front-loaded Static Costs
   The financial structure of the magnet school program remains largely unchanged regardless of student enrollment numbers. The initial costs, which are fixed and must be covered upfront, do not vary with the number of students. Colchester must employ the necessary staff to run the program, regardless of how many students are enrolled. The program offers specialized education pathways such as Fire Services, Medical, Criminal Justice/Forensics, Education, and National Security. Although some staff members may teach across multiple pathways, the current plan calls for at least six dedicated staff members to ensure that each technical area is adequately covered and students receive high-quality, specialized instruction. This staffing level is required even if only one student enrolls in a specific pathway.
   
   Additionally, the building used for the magnet school has fixed costs, such as energy demands (heating, cooling, and electricity) and ongoing maintenance expenses, which remain constant regardless of enrollment numbers. These fixed costs, both for staffing and facilities, must be paid upfront, and Colchester will only receive state reimbursement after these expenses have been incurred, putting the financial burden on the town initially.
   
   

2. Uncertain Out-of-District Enrollment
   The financial viability of the magnet school is heavily dependent on attracting enough out-of-district students. To simplify the financial scenario, let's assume the tuition reimbursement rate for the 2025-2026 school year is $13,315 per out-of-district student. The estimated cost to operate the magnet school is $600,000 annually. If the program attracts 46 out-of-district students, the total state reimbursement would be $611,490, which would cover the operational costs.
   
   However, if fewer than 46 students enroll, the state reimbursement will fall short of covering the $600,000 cost, resulting in a financial loss. In this case, Colchester taxpayers would be responsible for making up the difference. This introduces a significant financial risk, as the magnet school’s budget depends on meeting a specific enrollment target. If enrollment falls short, the town will bear the burden of the financial shortfall.
   
   

3. Historically Low Annual Increases in Reimbursement
   Another risk is the historically low annual increases in state reimbursement for magnet schools. As noted elsewhere in this FAQ, over the past 14 years, the state has only increased reimbursement by a total of 11%. This increase has not kept pace with the rising costs, particularly the significant salary increases outlined in the teacher’s union contract.
   
   This disparity creates a financial challenge for the program, as Colchester will be increasingly dependent on the state legislature to cover the growing costs. If the state continues to raise reimbursements at a rate slower than the rate of inflation or salary increases, Colchester will face mounting financial pressures to cover the difference. This puts the town in a vulnerable position, reliant on state decisions that may not keep pace with the financial demands of running the magnet school program.
   
   

4. Changes in State Law
   Another significant financial risk is the uncertainty surrounding changes to state law. The state is transitioning from a long-standing flat reimbursement rate, which magnet school operators have relied on for over a decade, to a new formula-based reimbursement system. This new system will take effect during the first year of Colchester’s magnet school operation. However, for the second year, there is currently no established state law to govern the reimbursement process.
   
   While it is likely that new legislation will be introduced, there is no way to predict what the new law will entail or how it will impact the financial stability of the program. Without clarity on the specifics of the new law and no reliable means of financial forecasting, Colchester cannot accurately assess whether this project is a sound financial decision. This uncertainty adds another layer of risk to the overall viability of the magnet school program.
   
   

5. Long-Term Commitment to Students
   Colchester is making a four-year commitment to students, the length of their high school career, when they enroll in the magnet school. This long-term commitment presents a risk, as the district will be obligated to honor this commitment to each student regardless of the state’s financial support.
   
   State laws governing reimbursement and funding for magnet schools change year to year, and Colchester could find itself in a situation where, despite these changes, the district is still legally required to provide the full educational experience promised to enrolled students. If the state legislature fails to provide adequate funding or reimbursement for subsequent years, Colchester will be responsible for covering the gap to ensure that the students can complete their education as promised. This creates an additional financial burden, as the district would be bound by its commitment to students, even if the state does not provide sufficient support to maintain the program in the long run.
   
   

In conclusion, Colchester faces considerable financial risks in operating the magnet school, including unpredictable enrollment numbers, significant upfront costs, historically low annual increases in reimbursement, uncertain state reimbursement due to legal changes, and the long-term commitment to students. These factors make it difficult to predict the program’s long-term financial sustainability and place considerable strain on the town’s budget, leaving Colchester heavily reliant on the actions of the state legislature.

In the Colchester Public Schools Magnet FAQ, they pose the question, “How much will it cost to operate?”

Their answer is:

“The application submitted by Colchester Public Schools identified the total estimated cost to operate the school would be $599,063.  This estimate is based upon the program having 160 students.  Assuming a conservative tuition revenue of $13,315 per student per year, Colchester would bring in $1,597,800 and spend $599,063 netting $998,737. This money would be used to offset the costs of running Bacon Academy.”

The truth is:

A mathematically savvy reader would quickly notice that multiplying 160 by $13,315 does not equal $1,597,800. This is because the correct calculation involves multiplying $13,315 by 120. The magnet school will enroll 120 out-of-district students, while the remaining 40 students are in-district Colchester residents.

Another misleading claim is that the $13,315 per student per year tuition is a "conservative" estimate. In reality, it is not conservative; rather, it represents the maximum per-student tuition that could be received for the current school year. This amount is specified in state statute Conn. Gen. Stat. § 10-264l for the years 2020 and beyond. However, this statute was amended in 2024 by Public Act 24-81, which introduces more complexity, not necessarily more funding. The new funding structure under this amendment begins in the academic year 2025-2026 and will be explained further on this webpage.

The estimated $600k required to operate the school primarily covers the salaries of six staff members. This figure does not include overhead costs such as utilities (water, electricity, etc.), insurance, maintenance, administrative expenses, or the purchase of supplies and equipment. Although tuition fees are presented as helping to "offset" the cost of running Bacon Academy, the 120 out-of-district students who attend receive the same high school education and benefits as in-district students. As a result, these 120 additional students impose a direct financial burden on Colchester taxpayers. The extent of this burden will be explained further on this webpage.

To understand the changes, it's important to first look at the past. Before 2025, the state legislature set a flat tuition reimbursement rate per student. In 2010, this rate was $12,000, and by 2024, it had increased to $13,315. In 14 years, reimbursement rates only increased 11%.

However, on May 7, 2024, the Connecticut General Assembly passed Public Act 24-81, which completely overhauled how tuition reimbursement is calculated. Instead of a flat rate, it now relies on a complex formula based on the socioeconomic status of the hometown of the out-of-district student. This formula is complicated, and the state has not yet provided specific tuition numbers for each town for the 2025-2026 academic year. For now, we will use estimated figures from the School and State Finance Project.

Under this new system, magnet schools will receive varying amounts of reimbursement for each student, depending on their town of residence. For example, a student from an affluent town like Weston would bring in the lowest reimbursement amount of $11,601, while a student from a more economically challenged town like New London would bring in $15,856.

For Colchester's magnet school, which targets a specific geographic region, the average tuition reimbursement from the 22 towns is estimated to be $12,912. The lowest reimbursement would come from Glastonbury at $12,067, and the highest from Hartford at $15,703.

If you’ve attended any magnet school meetings, you may have heard the Superintendent state that, for estimating reimbursement tuition rates, the state has advised using $13,500. You might notice that this is higher than the $12,912 average mentioned earlier. This is because, for the 2025-2026 school year, the state will "hold harmless" magnet schools during the transition to the new tuition reimbursement system, ensuring the minimum reimbursement rate remains at $13,315. However, there are no laws that guarantee this change will be permanent, and funding for years after 2025 remains uncertain. To reiterate, and copy verbatim from the School and State Finance Project: “Future funding for BOE magnet schools is unclear, as there is no funding formula in law for FY 2026 and beyond.”

This is, of course, the million-dollar question—one that the Board of Education has not provided an answer to, and, frankly, has never included in past school budgets. Typically, the Board of Education calculates per-pupil expenditure (PPE) for students across the entire district, a figure that can be used to compare Colchester’s costs to those of other districts. For the first time in history, we will break this down, clarify the mystery, and provide the actual costs, thus answering the question: what is the cost to educate a Bacon Academy student?

We want to be clear that the purpose of this webpage is to provide information that allows citizens to compare the magnet school tuition rate. In doing so, we aim to be transparent and offer honesty to the community conversation. Therefore, costs related to services provided by the sending district, such as special education and transportation, are not included in calculations below. As a result, the costs for an in-district Colchester student will be higher. The information provided here should only be used to understand how the magnet school tuition reimbursement compares to the actual expenditures for a Bacon Academy student.

To answer the question of how much it costs to operate Bacon Academy, we first need to look at the budget. The budget we’re using is the Board of Education Adopted Budget for the 2024-2025 academic year, which totals $45,576,075. This budget covers all costs associated with running Colchester Public Schools and includes hundreds of line items.

However, we are specifically interested in the cost for Bacon Academy. To calculate this, we need to break down the costs into two categories: those overhead costs shared by the entire school system to ensure its operation, and those unique to Bacon Academy. While there may be some disagreement with these numbers, we have made every effort to provide accurate and transparent information.

The total overhead cost to operate the school system is $9,121,488. This cost includes anything in the budget that pertains to central office or "system-wide" expenses, such as central office salaries and system-wide insurance. In a per-pupil expenditure (PPE) calculation, this total is shared among all K-12 students enrolled in the district, including out-of-district students.

The cost to operate Bacon Academy specifically is $8,316,223. This figure includes all expenses related to Bacon Academy, such as teacher’s salaries, but does not account for any capital projects funded through town bonding. In a per-pupil expenditure calculation, this total is shared among all students in grades 9-12, including out-of-district students.

The next key piece of information is the number of students and their grade breakdown for the district. These figures come from the Board of Education's September 10, 2024 meeting, where the Superintendent provided a report on the opening of schools and the enrollment numbers. In summary, there are 1,420 students in grades K-8 and 589 students in grades 9-12 at Bacon Academy, for a total of 2,009 students across grades K-12 in the district.

With this information, we can now calculate the cost per Bacon Academy student. First, we divide the overhead cost of $9,121,488 by the total number of K-12 students (2,009), which gives us an overhead cost of $4,540 per student. Then, we divide the Bacon Academy operating cost of $8,316,223 by the 589 students at Bacon Academy, resulting in a cost of $14,119 per Bacon Academy student. The sum of these two costs represents the cost to educate a single Bacon Academy student.

Therefore, the total cost to educate one Bacon Academy student in the 2024-2025 academic year is $18,660.

Source: You can review our calculations yourself on the spreadsheet used to calculate the above information

The proposed magnet school building will be constructed at Bacon Academy, replacing the current portable classrooms. These portable classrooms will be demolished to make way for the new structure.

In the Colchester Public Schools magnet school application, submitted on January 10, 2024, the district presented two cost estimates: $33,000 for demolishing the portable classrooms and $1,109,456.20 for the construction of the new building. However, the application did not provide detailed information on how these cost estimates were calculated. During a Board of Education meeting on December 18, 2024, it was revealed that the cost for demolishing the portables had increased to $89,900. This marked a significant 170% rise in the estimated cost within less than a year. This dramatic increase led us to file a Freedom of Information Act (FOIA) request to obtain more insight into the basis for these construction cost estimates.

The public records we received from the district can be accessed here. The district had reached out to a well-regarded construction company for a "rough order of magnitude" estimate for building costs. This preliminary estimate provided for a high-level $X per square foot for planning purposes. Given the proposed building's size of 5,250 square feet, the district provided a very rough cost estimate to the state. However, the contractor did not provide a separate cost for the demolition of the portable classrooms, only noting that the demolition cost was assumed to be included as long as the buildings were "environmentally clean." It is unclear where the cost estimate for removing the portable classrooms originally came from in the magnet school application, as no detailed breakdown or supporting documentation has been provided. 

In summary, the cost estimates provided are based on high-level discussions without detailed building plans or a clear breakdown of individual costs. As of the December 18, 2024, Board of Education meeting, the district continues to assert that the total cost for the new magnet school building will be $1.2 million.

You may have come across a magnet school presentation that claims a state grant will cover "a minimum of 95% of school construction costs." While this may sound promising, it is not entirely accurate. The truth is, whether Colchester will receive reimbursement at the 95% rate depends on two factors: the state legislature passing a law to authorize such funding, and the length of time the magnet school remains in operation. Currently, no state grant exists that guarantees reimbursement for the building costs, and the actual reimbursement rate is far from certain.

The state’s magnet school approval, as outlined in item 12, states, “The expansion and renovation project for the [Colchester magnet school] must receive approval from the Department of Administrative Services (DAS) for the projected cost outlined in the magnet proposal. The [state Department of Education] will collaborate with [Colchester Public Schools] to seek legislation for a 95% reimbursement rate in the upcoming legislative session.” This makes it clear that Colchester’s ability to receive any reimbursement is contingent on the passage of a bill by the state legislature. As we all know, the legislative process can introduce significant uncertainty, especially when it comes to a new magnet school that substantially expands the geographic area of the Sheff region. Some members of the legislature may question whether such an expansion serves the best interests of the state, further complicating the situation.

If the magnet program is discontinued, Colchester may be obligated to repay all or a portion of the funds received from the state for the school’s construction costs. This requirement is outlined in Conn. Gen. Stat. § 10-264h (Grants for capital expenditures for interdistrict magnet school facilities). Should the magnet school building no longer function as an interdistrict magnet school facility, Colchester would likely need to return all or a portion of the funds received from the state.

For the 2025-2026 school year, the state will transition from the previous flat rate to a new reimbursement formula. This formula, which varies by town, is based on the socioeconomic status of the hometown of the out-of-district student. The formula is complex, and the state has not yet provided specific tuition amounts for each town.

The figures below present estimated reimbursement rates from the School and State Finance Project. The towns listed are those from which Colchester Public Schools is recruiting students.

Sending Town

Bozrah: $12,740

Columbia: $12,365

East Haddam: $12,493

East Hampton:$12,271

East Hartford: $14,208

East Lyme: $12,537

Franklin: $12,420

Glastonbury: $12,067

Haddam: $12,129

Hebron: $12,152

Hartford: $15,703

Lebanon: $12,593

Manchester: $13,786

Marlborough: $12,145

Middletown: $13,345

Montville: $13,253

Norwich: $14,911

Portland: $12,507

Rocky Hill: $12,603

Salem: $12,342

Waterford: $12,720

Wethersfield: $12,774

It is important to note that for the 2025-2026 school year, the state will "hold harmless" magnet schools during the transition to the new tuition reimbursement system, ensuring that the minimum reimbursement rate remains at $13,315 per student per town. The only sending towns from which Colchester’s magnet school will recruit students that exceed this minimum are East Hartford, Hartford, Manchester, and Norwich.

Additionally, it is important to emphasize that there is currently no established funding formula for the 2026-2027 school year and beyond. As a result, it is impossible to predict funding for any academic year beyond 2025-2026.

We can make some assumptions to estimate the financial impact for the 2025-2026 academic year. The actual reimbursement rate will depend on which towns Colchester receives students from. For the purpose of this forecast, we will make the following assumptions:

1. The estimated operational cost of the magnet school is accurate.

2. The 9th and 10th-grade magnet school classes will be fully enrolled, with 40 students in each grade.

3. The maximum number of Colchester students will be enrolled in the magnet school.

4. The reserve for Hartford students will be filled, which adds revenue.

5. Enrollment numbers will shift as expected; for example, 2024 1st graders will become 2025 2nd graders.

6. The incoming kindergarten class size will match the current year's size.

7. The Central Office, System-Wide, and Bacon Academy costs will increase by 3% from the 2024-2025 budget.

8. We will assume zero operational costs for the magnet school building.

Enrollment:

• Bacon Academy Enrollment:

  • 190 9th graders

  • 180 10th graders

  • 135 11th graders

  • 160 12th graders

  • 7 ERTA students

  • Total Enrollment at Bacon Academy: 672 students

• Overall District Enrollment: 2,066 students

Bacon Academy Costs:

• Per student cost at Bacon Academy: $17,294

Magnet School Financials:

• Magnet school operational cost: $599,063

• Magnet school revenue: $926,988

• Revenue offset for Bacon Academy costs: $327,925

Financial Impact:

• The 60 magnet school students would bring an additional $327,925 into the district.

• However, the cost to educate these students at Bacon Academy is $1,037,645.

• As a result, Colchester taxpayers would need to subsidize the education of out-of-district magnet school students by $709,720. This equates to an additional cost of $11,829 per out-of-district magnet school student.

This forecast highlights the financial burden on local taxpayers to cover the gap between the revenue generated from out-of-district students attending the magnet school and the overall cost of educating them.

Source: You can review our calculations yourself on the spreadsheet used to calculate the above information

This is an area of ongoing research for us. At this point, we have a significant concern that we believe everyone should be aware of. This issue undermines the entire magnet school proposal and could effectively halt Colchester's plans. The State Department of Education must address this question before Colchester can move forward with the project.

The concern arises from Conn. Gen. Stat. § 10-264l(12), which states: "For the fiscal year ending June 30, 2023, and each fiscal year thereafter, the department shall make grants determined pursuant to this subsection within available appropriations, and in no case shall the total grant paid to an interdistrict magnet school operator pursuant to this section exceed the aggregate total of the reasonable operating budgets of the interdistrict magnet school programs of such operator, less revenues from other sources."

This law seems clear for traditional magnet schools—they can recoup their operating costs, but they are not allowed to make a profit. However, this language becomes problematic when applied to a "school within a school" magnet program, such as the Colchester proposal.

It’s clear Colchester is eligible for reimbursement for the Hayward Academy of Public Service (HAPS), the magnet program, which has an estimated operating budget of $600,000. However, the district is also trying to support the magnet school concept by arguing that any remaining tuition funds could help offset costs at Bacon Academy—estimated at around $1 million. State law, however, indicates that Colchester may not be permitted to collect these additional funds, as they exceed what is considered a reasonable operating budget for the magnet program.

As you can understand, this is a critical question that needs to be addressed. If reimbursement is limited to the operating cost of the magnet school program, there would be minimal justification for proceeding with this project. Board of Finance member Tim Vaillancourt has reached out to the State Department of Education for clarification. This section will be updated once the requested information is received.

Some magnet schools, in addition to receiving per-student grants from the State, are allowed to charge tuition to other school districts for each student they send to attend the magnet school. However, Colchester will not be able to do this because it is establishing a Sheff magnet school, which is prohibited from charging tuition to other towns.

Source: School + State Finance Project