North Andover superintendent recommends $73.7M FY27 budget, proposes using $1.5M in circuit-breaker funds

Superintendent Lathrop presented the North Andover School Committee with a fiscal year 2027 recommended budget that she said "will preserve services. It will maintain all current essential services and programs for students." The proposal maintains class sizes overall, prioritizes special-education programming and early-learning initiatives, and includes targeted staff additions.

The superintendent said the full recommended package totals $73,705,289, with salaries of $59,763,211 and expense lines that bring the total to $73,705,289 before the districts planned use of reserves. "I'm recommending that we use circuit breaker to offset the $1,500,000 roughly, which would lead me to a... superintendent's recommended budget of $72,200,000," she said during the presentation. The recommendation is that the town ask for $72,200,000 at Town Meeting and that the district apply $1.5 million of anticipated state special-education ("circuit breaker") reimbursement to cover the remainder of the proposed spending.

Why it matters: the superintendent said the recommendation is intended as a one-year approach to avoid immediate layoffs while the district completes a five-year strategic plan and prepares a possible override request for FY28. Committee members and staff repeatedly warned that relying on circuit-breaker carryover carries risk because the state reimbursement rate and final claim are determined after the fiscal year ends.

Key details: the recommended budget preserves services and funds several staffing additions above level service: 1 elementary teacher, 1 middle-school teacher, an assistant principal at ABECC, 3 special-education positions and 3 teaching assistants. The plan also raises the daily substitute rate to $125 and adds $175,000 to technology for approximately 700 Chromebooks. Transportation and out-of-district placements are two of the largest cost centers: general-fund transportation is shown at about $6,209,088 (total transportation roughly $6,659,088) and out-of-district tuition funded from the general fund at about $4,000,000 (total out-of-district costs about $6,600,000).

Committee concerns and risk: members pressed staff on sustainability and contingency plans. Finance staff and the special-education director explained they are estimating a $2,500,000 reimbursement next year but propose using only $1,500,000 to leave a reserve cushion. Staff noted the claim will not be finalized until July and that a single unexpected residential placement could substantially increase costs. Several members said they support using the one-year measure but emphasized planning for an override next year.

Next steps: the committee scheduled a public hearing on the budget for Jan. 15 (senior center) and expects to vote to forward a budget to the town manager at its Jan. 20 meeting. Town Meeting is scheduled for May 12; any override to raise recurring revenue would be a separate process the district intends to plan for in 2027.

Quotes: Superintendent Lathrop: "So this evening, the superintendent's recommended budget will preserve services. It will maintain all current essential services and programs for students." On funding strategy, Lathrop: "I'm recommending that we use circuit breaker to offset the $1,500,000 roughly, which would lead me to a... superintendent's recommended budget of $72,200,000." Committee member (public and committee discussion): several members urged the district to use the next year to build a strategic case for an override rather than immediately proposing a recurring tax increase.

The committee did not vote on the budget this evening; members will continue review during the public hearing and at subsequent meetings.