Andover special-education officials warn FY26 budget faces multimillion-dollar shortfall driven by residential placements

Nancy Koch, executive director of special services for Andover Public Schools, outlined Wednesday evening how the district’s special‑education caseload and tuitions are shaping the FY26 budget.

Koch said total students with IEPs fell from 1,154 in fiscal year 2024 to 1,054 in FY25 — a decline of 100 students — but she told the School Committee that residential out‑of‑district placements have increased and carry much higher per‑student costs.

“We have a projected savings of $400,000 based on change of placements and the new transportation company,” Koch said, describing steps the district already took to reduce this year’s shortfall. She added the district prepaid $610,000 in tuitions in spring and received $158,241 beyond its projected circuit‑breaker award this year. Those measures and projected operational savings still leave a remaining FY25 deficit of $691,276, Koch said.

Koch told the committee the administration intends to file a claim for “circuit breaker extraordinary relief” with the Massachusetts Department of Elementary and Secondary Education (DESE). The district will notify DESE in February of its intent to apply, file the claim in March and expect a May decision. Koch said…