Southbridge committee hears FY2027 budget; presenters warn of $1.8 million shortfall as special-education costs surge

Presenters to the Southbridge School Committee on April 14 outlined the district’s FY2027 spending plan and warned that current projections leave the schools with a structural shortfall of about $1.8 million.

The budget presentation laid out the funding model and the major cost drivers for the coming year. Presenter Matt summarized the state funding formula and figures, saying net school spending stands near $47 million and the district’s calculated net appropriation is about $40.3 million. The local contribution for FY2027 was presented as roughly $10.6 million, about $500,000 higher than last year. Presenters noted the Student Opportunity Act had increased the per‑pupil rate for the district this year.

Committee members and staff emphasized that special education is the largest single cost driver. The presentation listed the special‑education budget line at approximately $14 million and highlighted the district’s Southbridge Academy as an in‑district program intended to reduce more costly out‑of‑district placements. Presenters also said out‑of‑district placements have jumped, reporting 56 students currently placed out of district compared with 54 previously, a year‑over‑year increase cited as around 37 percent.

Budget stressors identified by presenters included an anticipated $1.2 million decrease in grant funding for FY2027 and a multiyear reduction of roughly $5 million since FY2024, rising insurance costs (presenters gave a 10 percent projection), and an enrollment decline that increases per‑pupil spending pressure.

To close the projected gap under current revenue assumptions, presenters listed several potential reductions and operational changes: eliminating or reducing some contracts, a reduction of eight administrative positions (six described as central‑office administrators), two district positions at Tory Road, one elementary teaching position, nine support‑staff positions (including tutors and some substitute roles), and a potential policy of not backfilling some vacancies. The presenters framed these as contingency actions that would be taken if state and local revenue assumptions remain unchanged.

During questions, members pressed on supports for students at risk of dropping out, attendance and tardiness data, and contingency planning for volatile utility and fuel prices. Presenters described credit‑recovery and summer options, ongoing negotiations with a local community college for postsecondary pathways (still under negotiation), and a utility assumption baked into the plan (presenters referenced an 8 percent modeling assumption for utility increases). Presenters also said chronic absenteeism remains a concern at about 25 percent and that the district has reduced chronic absenteeism by roughly 12 percentage points from prior years through outreach strategies.

The presentation included brief capital requests: a critical server replacement for the high school and an $80,000 building maintenance request. Presenters said many buildings are more than 30 years old and that some requests respond to safety and reliability needs.

What happens next: presenters said the FY2027 plan is contingent on the final state budget, and the committee may be asked to consider staffing and program decisions depending on the state’s conference committee outcome. The administration indicated it will provide monthly variance reports by cost center during FY2027 and keep the committee updated if revenues or projected expenses change.

Minutes approval and adjournment: the committee approved minutes from the March meeting by motion early in the session and later approved a motion to adjourn at the end of the meeting.