Receiver warns of tight budgets: special-ed placements, utilities and insurance drive pressure on Southbridge schools

Receiver Scott Metzger briefed the Selberge School Committee on Feb. 10 about the district’s fiscal outlook, warning of compounding pressures from rising insurance and utility costs, the end of ESSER federal aid and expensive special-education placements that can exceed $100,000 per student.

Metzger said the district’s preliminary net school spending figure for the upcoming fiscal year is roughly $47,000,000. He reported a projected required local contribution rising from about $10,100,000 in FY26 to about $10,600,000 in FY27 — an approximate $500,000 variance — and described per-pupil expenditures in a preliminary range of $23,000–$24,000. He emphasized that some figures are estimates and that final insurance rates for FY27 remain unknown.

Metzger explained the state funding model (Chapter 70) relies on October 1 enrollment counts, which creates a lag when students enroll midyear; he said the district recently absorbed a midyear enrollment requiring an out-of-district special-education placement, which increases current-year costs without immediate state reimbursement.

As immediate steps, Metzger said he placed a pause on discretionary spending through March to allow staff and the committee time to plan to close FY26 with a balanced budget. He reviewed cost centers and noted the district had already spent roughly half of its budgeted overtime and a significant share of utility and special-education appropriations. He also described the district’s revolving accounts (including facility rentals) and ongoing discussions with municipal leaders about using rental revenue proportionally to offset utilities for tenants such as QCC.

Committee members asked for specifics on a reported $277,000 electricity bill for the middle–high school; Metzger said he did not have a line-item breakdown in the meeting but noted the building’s size, computer labs and on-site servers and promised to follow up with details. On private-day placements and DCF-related transportation, Metzger clarified that 'private' referred to private day special-education programs and that DCF transportation costs vary by case.

Members sought to know whether staffing reductions are being considered; Metzger said the district must balance all accounts by the end of the school year and that worst-case scenarios could include reductions in force, but any cuts this year would target non-bargaining and administrative staff rather than teachers or educational assistants. He said the district will monitor state budget developments, meet with municipal partners, and return with refined projections.

The committee did not vote on budget actions at the meeting; Metzger’s request to pause discretionary spending stands as an administrative direction while the district finalizes FY26 close-out plans.

The committee scheduled its next meeting for March 10 where financial updates and next steps are expected to return to the agenda.