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Newburyport school budget rises as special-education and out-of-district costs balloon
Summary
School staff presented a $47.8 million FY27 draft budget requiring a $41.5 million city appropriation (about a 5.2% increase). Officials warned out-of-district placements and special-education costs — including seven projected residential placements at roughly $390,000 each — are the main drivers and noted limited local revenue growth under Proposition 2½.
The Newburyport City School Committee reviewed an updated FY27 draft budget on March 11, 2026, that would increase total spending to $47.8 million — a $3.2 million (7.3%) rise from level service — and require a city appropriation of about $41.5 million, or roughly a 5.2% increase.
Mr. Manning, presenting the draft, said, "The current budget is a $47.8 million budget, which is a $3.2 million or 7.3% increase. It would require a city appropriation of 41.5 million which is a $2 million increase or approximately 5.2%." He and other staff emphasized that much of the growth is driven by special-education expenses and out-of-district placements.
Staff projected 34 out-of-district placements for FY27, including seven residential placements. "The average cost for one of those" residential placements, Mr. Manning said, "is approximately $390,000," a figure the committee flagged as a central budget pressure.
To close gaps, the presentation outlined a mix of adjustments: staffing reallocations, attrition savings, enrollment-driven shifts, and one-time use of school-choice fund balance. The school-choice fund has been used as a contingency; staff said the district took approximately $400,000 of one-time school-choice reserves in the current iteration and currently estimates next-year school-choice receipts near $1.5 million (the packet showed roughly $1.2 million received in the current year).
Officials also updated projected state receipts. The district adjusted its circuit-breaker (special-education reimbursement) estimate to about $2.85 million and described that figure as conservative.
Committee members focused several questions on long-term revenue constraints. Mr. Manning and other speakers noted the limits of local revenue under Proposition 2½ and the importance of state-level relief for structural funding problems, including Chapter 70 and unrestricted general government aid.
On options to lower costs, staff described ongoing work to develop more in-district special-education programs, share transportation arrangements with neighboring districts, and continue district-level cost reviews. The superintendent said leaders will hold a special-education budget summit and meet with program leaders to examine contract services and transportation and to identify opportunities to reduce reliance on high-cost out-of-district placements.
What happens next: staff will return with a recommended preliminary budget at the March 25 meeting, followed by a public hearing and proposed budget adoption at the April 29 meeting.
