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Portsmouth budget upended by double‑digit insurance increase; bus contract negotiated and approved
Summary
The superintendent told the committee March 10 that FY2027 health and dental renewals came in far above estimates, forcing a revised budget due March 24; the committee approved a negotiated five‑year transportation contract with First Student and several budget transfers and restricted fund moves.
Portsmouth school leaders told the School Committee on March 10 that an unexpected, double‑digit increase in health and dental premiums has required the FY2027 operating budget to be revised and returned for approval on March 24.
Superintendent Dr. Viveros said the district had budgeted a 6% insurance increase but received renewal rates that materially exceeded that estimate. Finance director Chris reported the actual increases were approximately 16.47% for health and 9.14% for dental; truing those rates to the FY2027 draft would raise budgeted expenditures by roughly $382,000 and increase total year‑over‑year spending growth to approximately 3.6% (town appropriation impact estimated at about 3.5%). Because of the timing, the committee did not vote on a final FY2027 budget and staff said they will return March 24 with a revised proposal.
Chris also walked the committee through edits from the initial draft to the second draft: an $86,336 net reduction achieved through targeted line adjustments including reduced substitute salary and legal services lines, a $120,000 reduction in the transportation contractor line after renegotiation, and a $73,000 textbook timing change so purchases occur in the current year; staff asked the committee to approve a $72,697 budget transfer to purchase social studies and science textbooks this fiscal year.
Transportation: the district issued a request for bids for a five‑year contract beginning July 1, 2026. Only one bid was received (First Student) and the initial proposal included a 15% increase in year 1 and 6.5% in subsequent years. The district and its consultant (Alliance Education Associates; project lead Rich Lee) negotiated to a 9.5% increase in year 1 and 6% in years 2–5, in exchange for offering First Student the district’s statewide transportation business if First Student can meet cheaper terms and receive RIDE waivers. The committee approved the negotiated award under those terms by unanimous vote.
Other actions: the committee approved gate‑receipts and facilities‑rental fund allocations to continue saving toward turf replacement (projected combined restricted balance ~$274,756), accepted a $7,000 Melville PTG donation for playground/basketball court repairs, approved three budget transfers over $5,000 totaling $100,674 (including the textbook transfer) and granted contingent approval for the Model UN trip to Dartmouth contingent on sufficient fundraising. Most formal votes recorded were unanimous (6–0) at the meeting.
Why it matters: the insurance renewal spike is a material budget risk that could require program or staffing tradeoffs or a larger town appropriation; the transportation award reflects the tight regional market for contractors and district negotiation to limit immediate rate shock. The committee will re‑convene March 24 to finalize FY2027 recommendations to the town council.
