The North Andover School Committee on March 20 received an update showing the FY2025 budget shortfall had grown to $4,083,000 after the administration and an outside consultant reconciled cost‑center spending and identified unaccounted expenses.

Superintendent Pam Lathrop said the larger deficit emerged after a detailed line‑by‑line review for FY26 revealed FY25 items that were not fully captured in the original budget, including unanticipated substitute and leave costs, higher out‑of‑district special‑education placements and an unplanned district pest remediation expense. Lathrop said the pest treatment cost was “to the tune of $42,000.”

To close FY25, district staff proposed a package of revenue sources and transfers: $750,000 in previously allocated ARPA funds, a proposed $1,000,000 transfer from the town finance committee reserve, a $2,268,000 appropriation from free cash, and $65,000 from the special‑education stabilization fund. Lathrop noted several of those steps require town governance actions (finance committee approval and town‑meeting appropriation).

Looking to FY26, staff said the operating budget the committee reviewed was built “from the ground up” with input from every cost center and an external financial consultant; that process produced a draft that still requires reductions. Lathrop told members the district expects to eliminate a net of 40 full‑time teacher positions as non‑renewals or reassignments in March and April and to make additional assignment changes for Kittredge staff as that school is closed and students moved. She said teaching assistant impacts would be addressed in the spring once student placements and classroom staffing needs were finalized.

Athletics and extracurricular programs were identified as among the areas with specific notable impacts. Athletic reductions include a $20,000 cut that the administration said would not bar students from participation but would shrink schedules and reduce meet fees for some teams; staff said 10 teams with freshman programs would reduce their game schedules by three contests, and several teams would reduce equipment or defer uniform purchases. Scarlet Knights Academy — a program that pairs work activity with classes — would face a $10,000 reduction that could reduce per‑semester teaching staff from 12 to 10, reduce program capacity (24 to 20) and increase reliance on online coursework if necessary.

Lathrop acknowledged the cuts will be difficult for staff and families and said the administration would notify affected staff personally before any public announcements; she emphasized the district would try to give personnel as much lead time as possible. The administration scheduled staff notifications beginning March 21 and expects implementation of assignment changes in spring months.

Committee members and members of the public pressed for clarity on assumptions, what had changed from earlier estimates, and whether the FY26 draft had built in buffers for unplanned leaves and other contingencies; Lathrop said the FY26 build included more realistic contingency planning informed by the fiscal review.

No votes were taken on the budget items at the March 20 meeting. Lathrop urged the committee and community to be prepared for town governance steps required to finalize FY25 funding and for further discussion of the FY26 reductions at upcoming meetings.