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Brockton schools face tight FY27 after chargebacks rise; pension bond allocation fuels dispute
Summary
Superintendent Priya Tahiliani told the council Brockton Public Schools’ net school spending is effectively flat for FY27 because schedule‑19 city chargebacks rose about 10%—driven largely by a 36% jump in pension contributions. City and district officials disagreed on methods for allocating pension‑bond costs and urged a joint, consistent methodology before next year’s budget.
Brockton Public Schools Superintendent Dr. Priya Tahiliani told the city council the district’s net school spending for FY2027 is effectively flat after city chargebacks (schedule 19) rose about 10 percent, largely because the city’s pension‑related charges increased sharply.
Dr. Tahiliani explained that while state Chapter 70 aid and the local minimum contribution both rose slightly, a substantial portion of that money is being consumed by chargebacks—fees the city charges the schools for services and city‑side costs. She flagged pension obligations as the largest, unexpected driver: the schools’ share of pension contributions increased markedly, a rise she described as ‘‘not anticipated’’ and one that reduced the operating flexibility of the district.
City CFO Dr. Clarkson told councilors there are multiple accepted ways to calculate how pension bond costs are allocated between city and schools. He said several methodologies had been run—some prepared by the school department’s consultant and some by city finance staff—and that final FY2027 allocations would depend on updated actuarial figures after recent pension bond market activity. The administration stressed that the 2021 pension Obligation Bond issuance had saved the city an estimated sum in net present value but acknowledged the new bonds and interest schedules add complexity to schedule‑19 calculations.
The disagreement over pension allocation has procedural dimensions: many municipalities finalize the schedule‑19 memorandum of understanding in late summer or early fall so both city and school budgets can reflect the agreed chargebacks. Several councilors and the superintendent urged Brockton to adopt that cadence and a single agreeable calculation method to avoid late‑breaking changes that force the district to cut or send out layoff notices in April.
School leaders also outlined programmatic and operational reductions made recently: more than $5 million in cuts since late April, prepayment of some tuition and use of a limited carryforward to manage immediate cash flows. The district warned circuit‑breaker (special‑education) funds have been used heavily to cover transportation in past years and now hold only about $1 million, limiting one potential offset.
What happens next: The city and BPS officials agreed to continue negotiations and to seek a consistent, documented approach for FY28 schedule‑19 calculations so both sides can plan earlier in the budget cycle.
