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Preliminary FY27 budget shows near 7.4% increase; health insurance major driver
Summary
Manchester Essex Regional staff presented a tentative FY27 budget showing a 7.39% spending increase driven largely by a projected 20% rise in health insurance (roughly $1.1M); administration emphasized the numbers are preliminary and key variables (healthcare rates, special-education placements) remain volatile.
Finance staff presented a tentative FY27 budget on Dec. 2 that estimates a 7.39% increase in spending (total roughly $35.7 million). Administration emphasized that the document is an early, tentative projection intended to start public discussion and that major variables could change before a final recommended budget.
One primary cost driver highlighted was employee benefits: the presentation used a working assumption of a 20% renewal increase for health insurance, which administration said would translate to roughly $1.1 million and contribute substantially to a reported 16.6% increase in overall insurance and benefit-related line items. The administration said broker quotes and renewal numbers remain in flux and that the 20% assumption is intended to be conservative for planning.
Other budget notes included a projected modest revenue uptick (chapter 70 adjustments), a proposed reinstatement of 0.3 FTE for a speech-language pathologist (to replace costlier contracted services), a planned three-year iPad lease for K–2 device replacement, a $40,000 pilot for new science and math curriculum, and a small increase to budget for anticipated legal costs related to collective bargaining.
Committee members pressed for clarity on several lines (facility staffing, stipend trends, special-education volatility) and asked for multi-year modeling of reserve use and OPEB contributions. Administration said it will model scenarios, present staffing impact figures for items like the SLP reinstatement, and surface assumptions prior to public hearings. Members asked that town representatives be engaged in a collaborative meeting to review assumptions (reserves, OPEB, insurance) before final budget decisions.
