Stratham budget rises amid new teacher contract, special-education costs and health-insurance increases

The Stratham budget committee spent its meeting reviewing drivers behind a proposed spending increase that administrators and committee members said is largely the product of a new teacher contract, rising health-insurance costs and growing special-education expenses.

Speaker 6, who presented a line-by-line review, estimated an 11.45% increase in spending tied to the teacher contract, a 17% increase in health insurance and sharply higher out-of-district special-education tuition and transportation. "This budget's an interesting one because right now, it's standing with the teacher contract," Speaker 6 said, adding that removing $150,000 from the proposal would lower the projected spending increase from about 6.42% to 5.47% and reduce the tax impact per thousand from roughly 0.396¢ to 0.337¢.

Why it matters: committee members repeatedly stressed that special-education payments are large and, in many cases, required by students' individualized education programs (IEPs). Speaker 7 described the district's process: teams review each student for a least-restrictive environment and, when necessary, coordinate with an SAU 16 out-of-district coordinator and families to find and vet alternative placements. "Our first goal is that every student would start here and end here," Speaker 7 said, adding that when specialized placements are needed, the district tries to combine transports across districts to reduce costs.

State funding shortfalls were raised as a structural driver. Speaker 7 cited a Rand decision referenced in the transcript and said a state-level adequacy finding identified $50 million in needed special-education funding while the state proposed $33 million, leaving a local gap that affects tax rates and budget choices.

Administrators also warned about marketplace pressures. Multiple speakers noted contracted services for specialized staff — such as board-certified behavior analysts (BCBAs), registered behavior technicians (RBTs) and speech-language pathologists — have become more expensive as providers and specialized programs have closed or tightened capacity. Speaker 10 explained that contracted ESY (extended school year) services are projected to rise from $10,000 to $20,000 in the draft due to increased complexity and market rates.

Committee discussion focused on potential reductions and process. Speaker 6 offered a menu of possible savings — delaying furniture replacement, holding extra-duty stipends, keeping one vacancy unfilled and scrutinizing contracted services — with the aim of recovering $150,000. Bond accounting and interest were discussed at length after Speaker 3 asked whether bond interest could be used to pay for furniture. Speaker 8 explained that interest must be appropriated and that unused bond proceeds or interest would offset amounts needed to be raised in taxation only when a project is closed out; interest is recorded as revenue but cannot simply be netted against appropriation without formal appropriation.

Next steps: the committee will participate in a public hearing Wednesday, with a budget video and open comment; the board is expected to finalize the number that night and the fact committee will record its recommendation. The transcript records a motion to adjourn and the meeting concluded at 07:30. No formal roll-call votes on the budget were recorded in the transcript.