Newburyport school officials present tight FY27 budget as special‑education placements drive costs

Newburyport School Superintendent Sean Gallagher and district finance director Ethan Manning presented a tightened FY27 budget at a public hearing on April 8, saying the plan cuts roughly 7.3 full‑time equivalent positions, relies on revolving funds and calls for a $41.1 million city appropriation — a $1.7 million (4.33%) increase over the current year. Gallagher told the school committee the proposal reflects several iterations of reductions and a goal of preserving classroom programs where possible.

"For tonight we're at a 4.3%" increase to the city allocation, Gallagher said, framing the budget as a balance between fiscal constraint and maintaining services. Manning summarized revenue assumptions and said the total budget appropriation — which includes non‑city revenue such as grants and revolving funds — would rise by about 6.65% under the current proposal.

The district identified out‑of‑district special‑education placements as the largest cost driver. Manning said 34 students are placed outside the district this year — seven in residential programs — and that those placements and transportation are largely dictated by state and placement processes beyond the district’s control. "Without these special‑education costs impacting the budget, our increase probably could have been closer to 2%," Manning said.

To bring the city request down from earlier proposals, the district is using available school‑choice and circuit‑breaker funds, aligning staffing with enrollment trends and trimming non‑personnel budgets, officials said. Manning outlined projected reserves and noted that several revolving funds will be drawn down this year; the circuit‑breaker reimbursements are subject to state appropriation and lag the cost year, he said.

The proposed staffing reductions include two elementary teacher positions (through attrition/retirement) and a net 7.3 FTE reduction across the district, achieved mainly by aligning positions with enrollment and by reassigning or consolidating roles. Manning said the district intends to preserve core supports — literacy intervention, special‑education services and counseling — by reallocating central‑office staff and principals’ resources rather than by eliminating mandated services.

Committee members pressed the administration about whether reductions would mean layoffs or only position eliminations and sought reassurance that student intervention services — especially literacy and special education — would remain adequate. Gallagher said the district will monitor closely and expects to make some mid‑year adjustments if unexpected absences or needs arise.

Public commenters, including PTO co‑presidents and parents, urged caution about cutting programs at a time when extracurricular offerings and social‑emotional supports are in demand. "Our kids need more opportunities, not fewer," said Sarah Collins, a PTO co‑president and parent, during the public‑comment period.

What happens next: the school committee held the public hearing on April 8 and is scheduled to vote on a final recommended budget on April 29. Mayor and city staff will then have to fit the school committee’s figure into the municipal budget process.

Votes at a glance: the committee also approved routine warrants and minutes, approved an overnight Sailbot trip to Cornell for June, and adjourned the budget hearing. The hearing and the committee discussion made clear the district expects a tight FY27 with little built‑in contingency and a likelihood of ongoing monitoring and possible mid‑year adjustments.