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Superintendent and finance staff flag potential federal cuts, outline FY27 process and enrollment snapshot
Summary
District administrators told the school committee on Sept. 24 that the FY25 audit has been completed and laid out preliminary FY27 budget planning amid possible federal grant cuts and steady but tight enrollment in several elementary grades.
Superintendent Peter Cushing and Finance Director Emma Pugliese used the Sept. 24 meeting to preview FY27 planning, present FY25 year-end audit status and give a preliminary enrollment snapshot. The presentations emphasized fiscal uncertainty from potential federal grant reductions and the administrative plan to engage stakeholders earlier in the budget process.
Pugliese told the committee the FY25 consolidated reporting and audit work are complete and explained a delay caused by audit-firm transitions (Powers & Sullivan → Markham → CBIZ). She said the city’s audit committee recommended Roselli & Clark for the FY25 audit going forward. The district’s DESE consolidated chart-of-accounts reporting was described as complete and required for state comparisons, net school spending verification and state aid calculations.
Cushing flagged potential federal funding risks and said he had asked staff to model the local effect of a hypothetical 26% Title I reduction after reading a House Appropriations report. He said a 26% reduction would lower Beverly’s roughly $675,000 Title I allocation by about $175,000—an example of the kinds of outside risks the administration is monitoring. Pugliese and Cushing also noted discussions about Medicaid reimbursement rates and other federal/state grant changes that could affect the district’s supplemental funding.
On enrollment, staff provided a first look at school-by-school headcounts: Ayers 410; Centerville 323; Cove 380; Hannah 351; North Beverly 337; McEwen 103; middle school 1,424; high school 1,177. Pugliese said a more comprehensive report will follow after the Oct. 1 DESE enrollments.
The district’s financial strategy includes deliberate use of revolving accounts and carry-forward balances—partly built up during the ESSER period—to smooth revenue reductions. Pugliese said FY25 drew down several carry-forwards and that the recommended long-term practice would be to retain a carry-forward balance approximating one year’s operating needs to buffer shocks.
Cushing and Pugliese outlined a plan to open budget discussions earlier and more broadly for FY27, noting two additional school-committee seats to be seated Jan. 2026 and the need to give new members time to shape priorities. They proposed earlier community engagement, clearer public materials, a level-service projection as a baseline and evaluation criteria for prioritizing new items. The administration said they will present iterative updates at upcoming committee meetings.
