Gardner Public Schools projects roughly $474,000 FY2026 shortfall; mayor pledges $300,000 above net school spending

Gardner, Massachusetts — Gardner Public Schools Superintendent Dr. Mark Pellegrino told the Gardner City Council in an informal May 19 presentation that the district faces a FY2026 budget deficit of roughly $474,000 driven by enrollment growth, rising health‑insurance costs and higher out‑of‑district placement expenses.

Dr. Mark Pellegrino, superintendent of Gardner Public Schools, said the district’s enrollment has risen by more than 300 students since 2021 and that the district’s per‑pupil expense is about $18,000. “That’s about a $5,400,000 increase just because of the increases in enrollment,” Pellegrino said.

The mayor, speaking during the presentation, said the city hopes to continue funding above the state’s minimum net school spending and has committed $300,000 above that level for this budget cycle. “We’re on a long term plan to slowly reduce that one‑time money that we’re putting there,” the mayor said, describing an effort to shift away from one‑time funding sources.

Why it matters: The budget presentation ties growth in students with special needs, English‑language learners and low‑income students to immediate staffing and service costs. If the deficit is not closed, the district said it would cut two positions: a maintenance position that had been slated for restoration and a mental‑health counselor at the high school.

Most important facts

Pellegrino said Gardner’s high‑needs populations have grown substantially. He summarized high‑needs as students who are low income, students with disabilities, students with a first language other than English, or English‑language learners, and noted those groups are not mutually exclusive. He said low‑income student counts rose by about 50 percent and students with disabilities increased by “a little over 100 students,” which the district estimated would translate to additional special‑education staffing needs.

Out‑of‑district placements, Pellegrino said, have increased the district’s costs by about $2,000,000 since last year. He also cautioned that a portion of out‑of‑district funding depends on federal IDEA funding that is not finalized until the fall; the transcript referenced “IDEA 240 federal funding” as uncertain until September or October.

On revenue and drivers of the shortfall, Pellegrino and the district’s finance director explained that roughly $1.6 million of year‑over‑year salary and payroll increases reflect a mix of step/lane changes, restored one‑time school choice funds from the prior year, and mandated additions tied to students’ Individualized Education Programs (IEPs). The presentation identified indirect costs — including health insurance increases (noted as about $1.7 million) and retirement costs — as large contributors to the budget gap.

The district staff presented two closely reported deficit figures: a $474,230 shortfall and a $474,231 figure referenced later in the presentation; both figures were discussed as the budget gap the district and school committee considered.

What the school committee did

Pellegrino said the school committee voted to include the roughly $474,000 gap in its budget submission. That vote was taken by the school committee, not the city council; the council’s meeting was an informational presentation and did not include a council vote on the school budget.

Potential cuts and next steps

District leaders said that if the gap is not bridged they would remove two positions: (1) the maintenance position they had planned to restore and (2) a high‑school mental‑health counselor. Pellegrino said the mental‑health duties would then fall to school counselors and other staff in the building.

The mayor reiterated a multi‑year approach: to reduce reliance on one‑time funds (for example, school‑choice revenues used in prior years) while increasing the city’s consistent contribution above the state minimum net school spending. Pellegrino noted that changes to federal funding (for example, ESSER) and timing of IDEA funds affect final FY2026 out‑of‑district budgeting.

Other notable details

• Transportation: The district reported transportation contract and sped transportation cost increases, but said recent bids produced smaller increases than previously warned; school bus market conditions remain a concern because of limited bidders.

• Grants: The presentation listed federal grants including Title I (about $880,000) and Title III (about $35,000). Principals were noted as required to share certain federal grant benefits with Holy Family Academy as part of current arrangements.

• Labor contracts: The district is not negotiating with its largest local unions this fiscal year; successor contract negotiations are expected in FY2027. The district noted a 2% salary increase for the coming year and discussed large recent increases in health insurance premiums (figures referenced in the presentation included a total increase described as roughly 20–24 percent for some categories).

Ending

Councilors thanked Dr. Pellegrino and district finance staff for the presentation. The informal session closed and the council reconvened for its regular meeting at 7:30 p.m. The district and the city will need to reconcile the projected gap through the city’s contribution, district cuts or other revenue adjustments before the FY2026 budget is finalized.