Grafton officials lay out $1.6M shortfall, offer override, enterprise fee and cuts including potential school staff reductions

Grafton School Committee Chair Amy Marr heard a joint presentation on Feb. 4 from Town Administrator Evan Broussard and Superintendent Dr. Jay Cummings laying out a municipal and school budget gap of roughly $1.6 million for fiscal 2026 and describing options that include one-time reserves, a property-tax override, converting solid waste to an enterprise fund and program and staff reductions in the school budget.

The town side, presented by Town Administrator Evan Broussard, showed an overall requested budget increase of about 6.27 percent driven largely by so-called "unclassified" costs—pension, Medicare/FICA, health insurance and other benefit lines that the town cannot easily control. Broussard said the town has about "$5,100,000 ish" in municipal stabilization and about "$4,400,000 in free cash," which he described as roughly 11 percent of operating reserves. He reported pegging new growth at about $1.26 million for 2025 and that the requested operating package currently leaves a deficit in the low six figures (Broussard referred to it as a negative "$26,000" in his slide sequence) after recent adjustments and updated state estimates.

Broussard summarized four paths forward: (1) use free cash and stabilization to cover $500,000–$700,000 of reductions and bridge the gap with one-time revenue, (2) seek a property-tax override that would permanently raise the levy, (3) convert municipal solid-waste services to an enterprise fund to recover roughly $600,000 now supported in the general fund, or (4) require sustained reductions across town and school budgets. On the solid-waste option he said converting to an enterprise fund would "redirect $600,000 back into the general fund" and close a portion of the shortfall, but warned residents sometimes perceive an enterprise fee as an added tax even if the overall tax burden does not fall.

On benefits and environmental mandates, Broussard flagged large projected increases: he said retirement and pensions were trending about 9.7 percent, health insurance was forecast in the presentation at 10 percent but he told the committee the town was "told to expect a 15" and that initial vendor quotes had been as high as 28.7 percent. He also described MS4 stormwater permitting as a federal requirement affecting public works costs and presented a 5-year capital plan that totaled roughly $4.5 million before applying funding sources; he said roughly $1.4 million of that plan would be borrowed and about $3.278 million would come from CPC or other sources.

Superintendent Dr. Jay Cummings presented the school department's initial reduction-budget planning and the likely school share of the townwide shortfall. Cummings said the schools are expected to absorb about $1.5 million of the roughly $1.7 million gap identified for fiscal 2026. "We're talking about a reduction from what we have now of about 36 staff members," Cummings said, adding that such cuts would increase class sizes and reduce programs over time. He also said his "first draft has us at 21.3 FTE" as an initial restructuring number and later described an initial projection that about 10 positions would qualify for unemployment benefits depending on resignations and retirements.

Cummings warned of longer-term compounding effects: larger class sizes and fewer supports could reduce the district's attractiveness and increase out-of-district placements, which would further pressure the budget. He emphasized efforts to prioritize early grades and to minimize direct layoffs by making use of anticipated retirements and resignations where possible. Cummings said he would return with a more detailed reduction plan at the next committee meeting and expected to present to the finance committee on Feb. 26; he urged transparency and advance communication with affected staff.

Both presenters described an OPEB (other post-employment benefits) funding move in the capital plan: a proposed $300,000 capital contribution to OPEB in order to improve the town's bond posture and reduce long-term OPEB costs. Broussard said funding at recommended levels could "save $20,000,000 on our OPEB expenses" over the long run if sustained as projected.

The committee and presenters repeatedly framed the town as "override dependent"—Broussard and several committee members noted that recent budgets have relied on overrides and that the town has limited options when state aid and fixed costs diverge. Several committee members pressed for clear, itemized budget documents and line-item reconciliations; Dr. Cummings agreed to produce a reconciled view of school actuals and offsets to make the relationship between the school need and other revenue lines clearer.

Votes at a glance

- CPAC liaison: Leora Brown nominated and unanimously appointed as the committee's CPAC liaison. (Motion carried unanimously.) - Minutes: Committee approved minutes for Jan. 21, 2025. (Motion carried.) - Warrants: Committee approved warrants 30 and 31. (Motion carried.) - Policies: The committee accepted policy KDCB (website and social media) and policy KF (community use of school facilities) as second readings, accepted JEB (entrance age) with clarifying edits, and voted to delete policy KF‑E1 (fee application form). (All motions carried.)

What happens next

Superintendent Cummings said he will circulate a more detailed reduction plan before the committee's next meeting and meet with staff who could be affected on a preliminary basis prior to February vacation. Broussard said the town will continue to refine revenue estimates (health-insurance rates, Chapter 70 state education aid and other receipts) over the coming weeks and that any final budget package will be subject to the finance committee, select board and ultimately town-meeting and, if applicable, ballot approval for an override. The committee scheduled further budget review and a school update for its next meeting.