Canton school committee hears Q2 finance report as deficit grows; previews FY26 budget

At a virtual meeting of the Canton School Committee, finance staff reported the district’s operating deficit had increased from an $849,000 Q1 shortfall to about $1.5 million as of Dec. 30, and outlined steps to refine the proposed FY26 operating budget.

Committee members said the change in the deficit and repeated reliance on reserve and revolving funds were their primary concerns. Finance staff described the difference between the revised budget and anticipated spend as largely the result of FY24 encumbrances that carried into FY25—primarily payroll timing for employees paid after the fiscal year closes—and an ongoing payroll and accounts review to correct charged salary lines.

Why it matters: the committee must reconcile rising special-education tuition and transportation costs, unsettled labor negotiations and encumbrances within the district’s operating totals before a compressed FY26 budget calendar. Committee members pressed for clarity about oversight of high-variance lines and whether town finance officials still expect the district to keep more special-education costs in the operating budget rather than draw on…