Superintendent presents FY26 recommended budget; committee schedules vote for March 27

Superintendent’s presentation: The Watertown School Committee on March 24 opened the public hearing on the superintendent’s recommended FY26 budget and heard a detailed presentation from Lisa Gibbons, the district’s director of finance and operations. The committee plans a formal vote on the budget on Thursday, March 27.

Budget totals and drivers: The superintendent and finance director recommended a $61,893,912 operating budget for FY26, an increase of 3.5% over FY25 and effectively 3.67% when including a $100,000 city contribution for universal pre-K. The district reported an enrollment of 2,844 students for 2024–25 and said continuing enrollment growth is a major cost driver. Key budget drivers listed were personnel step increases and lane changes, special-education tuition and new out-of-district placements, and anticipated collective-bargaining costs.

Special education and offsets: Finance staff reported 68 known out-of-district placements budgeted for FY26 (up from 54 in earlier planning) and projected $3,858,979 in circuit-breaker reimbursements from the state to offset tuition costs. The presentation noted a starting deficit of $495,749 during initial planning, and described steps taken to balance the budget, including contracting some services, reallocating open positions and capturing turnover savings projected at about $223,000 tied to eight anticipated retirements as of Jan. 24, 2025.

Unfunded priorities and contingencies: The budget document includes an “unfunded priorities” list that the superintendent said could be addressed if turnover savings or supplemental funds become available; priorities listed included a second Hosmer teacher, a math interventionist (potentially supported by Title I), an additional medical assisting teacher in CTE, and custodial staffing for the new high school (request for nine custodians; plan to open with seven). The district also noted potential exposure if federal IDEA and Title I funding declines; finance staff said they can temporarily manage a shortfall from reserves but emphasized the longer-term implications.

Committee questions and public comment: Committee members asked about how one-time expense requests would be prioritized if funds remain, staffing for the new high school and the Hosmer teacher allocation. The finance director said some positions might be placed or reallocated only after enrollment and staffing patterns are confirmed (for example, final kindergarten counts). Committee members praised the budgeting process but also noted that a fixed allocation for education imposes limits on service expansion.

Next steps: The committee will hold a vote on the FY26 recommended budget at a special meeting on March 27. If approved by the committee, the budget will be forwarded to the city manager and later to the city council for consideration and final approval in late April–May.