Superintendent urges approval of level-service FY26 budget, warns of $2.5 million gap
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Summary
The superintendent presented a level-service FY26 budget for Dracut Public Schools that relies on a 1.97% state net school spending increase and flagged rising chargebacks, a projected 17% health-insurance hike and special-education cost growth that create an estimated $2.5 million shortfall.
The Dracut Public Schools superintendent presented a recommended level-service FY26 budget Wednesday evening and urged the school committee to approve the spending figures so the district can transmit the budget to the town manager.
The superintendent said the state's initial net school spending and foundation calculations set a minimum increase for Dracut of $1,094,364, or about 1.97%, which he called insufficient to maintain current services. He told the committee the district's recommended net school spending increase, separate from chargebacks, is $2,135,141.37, equivalent to roughly a 5% increase for the district.
Why it matters: the superintendent said state funding formulas have not kept pace with local cost drivers. He said the Student Opportunity Act produced gains earlier but that low inflation and declining enrollment have reduced the formula's recent benefit to Dracut. The superintendent noted Dracut currently sits at 41.16% of students classified as economically disadvantaged, just below the 42% threshold that would place the district in a higher state aid group; he said missing that threshold previously cost the district about $700,000 annually.
Key cost pressures: the superintendent said the town's insurance broker has warned of an expected 17% increase in health-insurance costs and that the district's health-insurance budget is "a little over $4,000,000." He estimated chargebacks tied to that insurance increase at roughly $1,500,000 and added that special-education costs, collective-bargaining step increases and anticipated legal expenses will further widen the gap. Overall, he estimated the district is "about $2,500,000 off" from fully funding level services under current assumptions.
Board action: Chair moved to approve the district's net and non-net school spending amounts for FY26 as read into the record. The committee carried the motion by roll call (recorded yes votes included Mr. Shepherd, Dr. Duda and Dr. Truval/Shueval and the chair). The superintendent said the approved figures would be transmitted to the town manager the following day.
What remains unresolved: the superintendent said he has not yet received a draft chargeback agreement from the town and that the town manager is newly appointed and still organizing the municipal budget process. He cautioned the committee that the budget is a snapshot; figures commonly change between February and June, especially because of special-education placements and collective-bargaining outcomes.
Next steps: the superintendent recommended approval for transmission and said the committee should expect further refinements as negotiations, state certification of net school spending and town-level chargeback discussions progress.
