Peabody council approves $101.97 million FY27 school budget after debate over cuts and grant‑funded jobs

Peabody City Council members approved the Peabody Public Schools proposed FY27 operating budget of $101,967,320 after a presentation by Superintendent Dr. Vedala, public testimony urging restoration of front‑line staff, and line‑by‑line council questioning about grant‑funded positions.

The superintendent told the council the district’s revenue picture improved modestly because Chapter 78 aid rose to $160 per pupil after local advocacy, producing $39,044,161 in state aid for the schools. “We were able to increase the chapter 78 to a $160 per pupil,” Dr. Vedala said, describing a multi‑draft process (drafts 0–6) that trimmed roughly $3 million from a level‑service projection through turnover savings, supply rollbacks, technology adjustments and unfilled positions.

The proposal represents a 2.9% increase over FY26; Dr. Vedala said $1,315,423 of that is salary and roughly $1.2 million is a health‑insurance increase. She also flagged a $300,000 increase in special‑education out‑of‑district tuition and a $292,000 rise in transportation costs. The administration reported a net reduction of 11.7 full‑time equivalents but said there were no layoffs, with many changes handled through attrition and scheduling adjustments.

Public commenters framed the council debate. Karen Mayo, a 27‑year paraprofessional, told the council cuts would worsen class sizes and strain teachers: “Cutting teachers is not gonna decrease class sizes, it will increase it,” she said. Elizabeth Mover, a parent, pressed for more transparency and criticized the district’s governance, noting the superintendent’s multi‑year contract extension despite an unfinished evaluation.

Councilors used those public concerns to press the superintendent on two recurring themes: visibility of grant‑funded positions and the district’s administrative structure. Councilor Turco asked whether positions moved to grant budgets were being obscured from the appropriation book and expressed skepticism about the timing and disclosure of some hires; he said the pattern creates a perception problem. “If it looks like a duck and it walks like a duck, it’s a duck,” Turco said, urging clearer documentation of grant‑funded roles.

Dr. Vedala said grant budgets are handled differently from the municipal appropriation book, that grant documents are public records managed by the school committee, and that the FY27 appropriation is the baseline the council must approve before grant allocations are finalized. She also announced that the district had initiated a Collins Center review of administrative structures and committed to share the report with the council.

Councilors also probed program specifics: the district plans to keep 1:1 devices for students tested on state exams but move K–2 to grade‑level carts (an expected $75,000 savings), and reductions in some middle‑ and high‑school ELL staff were attributed to recent enrollment declines and students testing out of services. Dr. Vedala said federal entitlement grants (Title I, IDEA, Title III) predominantly fund student‑facing roles and that competitive grants supplement but do not replace core services.

The council moved to approve the appropriation after discussion; Councilor Gamache made the motion to approve the budget as presented. After an initial roll call and a successful motion to reconsider, the final vote to approve the FY27 school budget was 9–2. The council adjourned to open a special meeting.

Votes at a glance: The approved FY27 school operating budget is $101,967,320; on final roll call the motion carried 9 in favor and 2 opposed.

The superintendent and school business office indicated grant allocations and federal entitlement budgets will be available in July–October and said they will provide those documents and quarterly grant reports to the council and school committee for oversight. The Collins Center administrative review, promised by the superintendent, is expected to inform next year’s budget planning.