Beverly officials warn federal tax-law changes could hit state aid; district launches budget survey, listening sessions

Beverly Public Schools leaders told the Committee of the Whole on Oct. 22 that recent federal tax-law changes could reduce state revenue and create downstream pressure on school funding, and they urged the community to participate in upcoming listening sessions and a district budget survey to help prioritize limited resources.

Why it matters: State education funding is closely tied to overall state revenue. District officials said early indicators suggest Massachusetts could face hundreds of millions of dollars in reduced tax collections tied to a July 2025 federal tax-law change, a shift that could affect Chapter 70 distributions and federal entitlement grants that districts rely on.

What officials said - Potential state revenue impact: Superintendent Peter Cushing summarized analyses circulated to state leaders indicating the federal changes could reduce fiscal 2026 state tax collections by an estimated $650 million; district staff called the figure a reason for caution while statewide numbers and DESE guidance remain uncertain.

- Medicaid/school-based reimbursements: Director of Finance Emma Pugliese told the committee the district currently draws about $400,000 a year from the Medicaid-in-schools reimbursement process for medically necessary services provided to eligible students. Reduced eligibility under federal proposals could shrink that revenue stream.

- Federal entitlement grants: Officials said Title I funding may be cut substantially; meeting discussion included a cited expectation of roughly a 25% reduction to Title I. District leaders said Title 3 (multilingual learners) is at risk under some scenarios and that a conversion of entitlements to block grants could change how funds are allocated.

- Local impact and mitigation: Beverly is a ‘minimum aid’ district and leaders said they do not expect the immediate loss of a few students to swing Chapter 70 status, but smaller districts could be more vulnerable. Officials described the situation as uncertain and urged public participation in state Chapter 70 listening sessions and the district’s community survey and listening events.

Community engagement and next steps - Budget survey: The district will launch a short stakeholder survey (parents, students, staff, community) to collect priorities for the FY27 budget and to solicit input on areas where the public would support investment or, if necessary, reductions.

- Listening sessions: Superintendent Cushing scheduled school-based listening sessions and virtual evening sessions so families and community members can provide feedback that will inform the budget-preplanning process. He specifically urged attendance at a regional Chapter 70 forum being held at Masconomet (Masco) on Oct. 23 and the state’s virtual sessions.

Other operational notes covered at the meeting - Transportation: Leaders reported ongoing transportation staffing challenges and said the district is onboarding new CDL drivers, expecting the first hire by Nov. 1. - Professional development and safety: The district’s Nov. 4 staff professional development day will include sessions on AI in education, student safety and supports for vulnerable students; the superintendent described additional seminars planned in response to incidents affecting students. - SRO memorandum of understanding: The superintendent previewed an updated SRO (school resource officer) memorandum and operating procedures; he said a final agreement will be coordinated with the police chief and brought forward for the committee’s review and public filing as required.

Selected quotations - Emma Pugliese, Director of Finance: “Currently, we bring in about $400,000 a year through the Medicaid and schools reimbursement.” - Superintendent Peter Cushing: committee discussion that “Title I will be reduced” and that there is an expectation Title 3 initiatives may be affected under some scenarios.

Provenance (selected excerpts): “'Revenue commissioner Jeffrey Snyder told state leaders that federal tax code changes could reduce the fiscal 26 state collections tax collection by $650,000,000 and acknowledges that there are additional, strains on the expense side relating to some of those legislative changes.'” “'We currently bring in about $400,000 a year through the Medicaid and schools reimbursement.' — Emma Pugliese”