Superintendent presents FY26 budget; proposes special education reserve account

Superintendent Allison presented the Westborough Public Schools proposed FY26 budget, describing it as a "level services" plan that maintains current programs while limiting new staff and innovation. The superintendent said the final proposed increase is 5.77% and urged the committee to consider strategic reallocations to manage costs.

Allison identified the primary cost drivers as salary, transportation and out-of-district special education tuition. "Out of district tuition is part of what makes special education... the most unpredictable part of the budget," she said, noting that tuition costs and student placement changes have driven a more than twofold rise since FY20 and that recent tuition hikes have totaled roughly 20% over two years.

To limit volatility, Allison proposed the committee explore creating a special education reserve account under M.G.L. Chapter 40, Section 13E. She explained the mechanics: a town meeting appropriation would establish the account holding up to 2% of annual net school spending; transfers out require votes by both the school committee and the select board; and potential funding sources include recurring reimbursements such as Medicaid payments.

Committee members asked for greater detail on the proposed reserve. One member asked whether Medicaid reimbursements would require a town meeting vote each time they were transferred; Allison said a warrant article would be drafted for identified transfers and that, once established, annual transfers from a reliable revenue source would be the normal process. "Typically how it works is when a source is identified... then a warrant article gets drafted for that year that's just a transfer," Allison said.

Allison also summarized capital requests and the capital expenditures planning committee's recent approvals (gym floor, district plumbing/HVAC, and a Mill Pond chiller phase 1), and listed unfunded requests including the Hastings playground and certain furniture and flooring projects. She said the district will explore grant funding and phased operating-budget approaches for those items.

Allison committed to releasing an updated budget book with DESE-mandated accounting codes in the coming days, monitoring enrollment closely, and returning bill numbers and other details to committee members on request. The presentation concluded with committee discussion about funding mechanics and next steps ahead of town meeting.