Revere schools warn of special-education cost pressures; district readies bids for transportation, food and cleaning contracts

District finance staff told the Revere School Committee on Jan. 24 that rising special-education tuition and an increased use of outside agencies for services have driven this year’s largest cost pressures, though officials do not expect an immediate year-end deficit.

“The primary drivers here are increasing costs for the special education tuition outcomes placements, increase in volume of students who have been out placed … and an inability to place special education teachers through the normal hiring process,” said Matt (district staff member). He said the district has had to hire agencies “at a premium” to fill roles, which raises costs.

Committee members and staff discussed using the Commonwealth’s circuit breaker payments to cover the immediate shortfall. Matt said the district will “actualize the Q1 payment from FY25, which already has been received,” and that that payment is larger than the projected special-education deficit for the current year.

Officials warned the decision has implications for next year’s budgeting because the district often relies on four quarterly circuit-breaker payments; using part of this year’s receipts now will reduce carryforward available for FY26. “That decision for this year will affect the next year,” Matt said, adding that the district’s work on staffing models and carryforward will inform March–April budget negotiations.

Finance staff also identified other accounts showing shortfalls or risk. Transportation accounts showed red balances largely because purchase orders remain encumbered for students who may not attend the remainder of the year, and tradesmen overtime is in deficit after maintenance staff installed district technology and assembled furniture rather than contracting out. Matt said using district staff saved money overall compared with outside contractors but shifted costs into overtime lines that were not budgeted.

To reduce uncertainty before the budget process, staff have turned four large services to the city purchasing office: regular transportation, special-education transportation, district-wide cleaning services and food services. Matt said those procurements were submitted to get price certainty as the committee prepares its budget calendar: “We’ve done everything we can to have very fruitful budget conversations in early March and through April.”

Committee members asked how the district tracks whether special-education services are actually delivered. Matt replied that services are written into students’ individualized education programs and building special-education coordinators ensure delivery. He also described statutory cost-sharing when a student moves to another district midyear: “The state law requires that we split that cost until the receiving district can fully assume the student.”

The business office noted one-time revenues and unspent instructional accounts that are expected to offset some costs at year-end. Staff also flagged timing issues from recent collective-bargaining settlements that produced retroactive pay that will be actualized in payroll in coming weeks.

Committee members asked staff to keep the committee informed after the governor’s budget and the state’s cherry sheet are released, since those numbers will determine the district’s revenue outlook for FY26.

Ending: Staff said they will monitor the flagged accounts, proceed with the planned procurements, and return with updated budget projections after state budget details are released and after the purchasing office returns bid results.