Dr. Jeffrey Silva, who summarized the city’s financial forecasting committee report on Dec. 17, told the Beverly Public Schools School Committee that the City of Beverly faces a structural budget imbalance that will widen over the next four years.

Silva read the report’s headline figures: an approximate general fund operating deficit of $3.9 million for fiscal 2027, growing to $7.1 million in 2028, $10 million in 2029 and about $13.7 million in 2030. The report attributes the trajectory to rising labor costs from collective bargaining, high special‑education and health‑care costs, state aid that is not keeping pace with inflation, limits on revenue growth imposed by Proposition 2½ and fixed pension and state assessment costs.

Silva said the committee used conservative forecasting assumptions and recommended policy makers consider difficult choices including service reductions, staffing changes through attrition or consolidation, reviewing opportunities to raise some school‑related fees and considering an override if services are to be maintained. He noted the report is available on the district budget web page and that the city council will receive the readout as it enters its budget work.

Committee members and staff noted the forecast will feed into spring budget decisions and a public hearing. Emma Pugliese said supporting materials — including a spreadsheet of three‑year kilowatt usage following the LED conversion and copies of related reports — are posted or can be provided to committee members.