Gardner School Committee approves $37.68 million FY26 budget after public hearing

Gardner — The Gardner School Committee voted 7–0 April 14 to approve a $37,676,548 fiscal year 2026 budget after a public hearing and a presentation by Superintendent Dr. Pellegrino and finance director Mark Hawk.

The approved budget includes a projected deficit of $474,231 assuming a $300,000 supplemental contribution the mayor pledged above the minimum required local contribution. Committee members and staff identified enrollment growth, higher out‑of‑district special education costs, and rising transportation and health‑insurance expenses as the principal budget drivers.

Dr. Pellegrino opened the public hearing with an overview of recent enrollment changes, telling the committee that the district has added more than 300 students since 2020 and that high‑needs student groups have grown substantially over the past decade. He said out‑of‑district and receiving costs have climbed from about $2.6 million in 2018 to “over $6,000,000” and stressed the need for staff to serve students in the least‑restrictive environment.

Hawk detailed cost drivers during the presentation. He said online schools now charge roughly $13,000 per student for synchronous virtual instruction compared with about $5,000 for some physical receiving placements, and called that a significant factor in rising sending/receiving costs. Hawk also attributed much of the district’s indirect cost growth to health‑insurance increases, which the presentation showed as the largest component of an approximately $1.7 million swing in indirect costs.

Transportation costs rose substantially in the new contract, Hawk said: the district budgeted an increase of about $117,000 for regular transportation and $272,000 for special‑education transportation. Adding an additional bus would cost an estimated $88,200 for 180 days of service, he said. The superintendent and committee also noted the bus bid this year produced a single response that increased the contract by $117,315 — approximately a 14 percent rise — and that the state legislature had requested an inspector general review of bus bids statewide.

During the public comment portion, resident Amy Doucette asked about bus delays and driver shortages and whether incentives could help recruit drivers. Dr. Pellegrino and Hawk answered that driver shortages are a statewide problem and that the district contracts with an external transportation provider.

The presentation reviewed state funding mechanics cited by Dr. Pellegrino and Hawk: Chapter 70 calculations, the Student Opportunity Act increase (noted as about $2.7 million in new Chapter 70 money for the district), and how Department of Revenue equalized valuation and income figures feed the required local contribution. The presenters noted one‑time federal funds used during COVID (ESSER) had previously offset some operating pressures and that several federal grants (Title I, Title II and others) remain part of the budget but could change with federal decisions.

After questions from committee members and the public, Mr. O'Frenier moved to approve the budget as presented; the motion passed in a roll‑call vote with all voting members recorded as "yes." The chair instructed the clerk to call the roll; the committee recorded seven affirmative votes.

The committee closed the public hearing and approved the FY26 budget as presented by the superintendent. The committee also discussed that the deficit would be covered without program cuts only by using one‑time funds and the mayor’s supplemental contribution, and that continued progress above minimum net school spending is a goal going forward.

The committee meets next on May 12 at 6:30 p.m. in the City Council Chamber.