Finance subcommittee reviews FY26 spending, early FY27 scenarios and reserve policy

The North Middlesex Regional School District Finance Subcommittee met Dec. 1 and heard a year-to-date budget update as administrators began preparing FY27 scenarios.

Nancy Haines, an administration representative, told the committee there were “no major changes from the last report.” She said district staffing was roughly in line with projections — about 425.35 full-time equivalent positions versus 429 budgeted for FY26 — and that she was watching several pressure points, including out-of-district transportation and substitute-teacher lines.

Haines said October actuals suggested a roughly $100,000 shortfall could emerge in out-of-district transportation if ridership continues as projected, but that tuition revenue was running higher than expected because some students “aged out or...left the district,” producing a net tuition gain that could cover transportation costs. She also reported $131,000 already moved into substitute-teacher lines and that some long-term sub encumbrances would be reviewed.

The administration flagged an accounting complication with utilities: a Direct Energy supplier contract currently prevents the district from applying solar credits on the Unitil bill, making short-term utility costs appear higher than anticipated.

The committee turned to FY27 planning materials prepared by Andrew McLean (TA), which included 5% and 3% budget scenarios and municipal revenue snapshots. The packet assumed a 2.5% levy increase and a 2% increase in state aid and local receipts; expenses were modeled at roughly 3% growth. Haines described the district’s approach as producing a “level service budget” first and then adding specific requests once department submissions are complete.

On reserves, Haines said last year’s E&D (excess and deficiency) use was $1,000,008.72 and that certification for the current year could be around $3,500,000 (estimate). “Right now I’m projecting $2,000,000 for that,” she said, explaining that figure reflects a plan to retain approximately 3% in reserve while allowing use of amounts over that threshold for one-time or capital expenses.

Committee members pressed for clarity on how quickly building-configuration decisions — notably the option to re-open Ashby Elementary — need to be made because those choices drive staffing needs and, therefore, budgets. Jeremy said earlier determinations about building configuration would improve the accuracy of submitted budgets. Haines said staff had prepared two FY27 scenarios, one reflecting current configuration and another adding Ashby back into the operating plan.

The subcommittee agreed to continue work on FY27 revenues and to post a finance-subcommittee meeting on Dec. 15 (8:30 a.m.) ahead of the district’s 10 a.m. budget summit so administrators and town officials could hear an early status report.

Action: The committee approved the Oct. 30 minutes by voice/roll-call vote during the meeting record. The meeting adjourned after a final roll-call vote.