By NEIL ZOLOT
NORTH READING — State Sen. Bruce Tarr and State Rep. Bradley Jones gave the School Committee a report about funding in the Fiscal Year 2026 state budget and future years that was optimistic in some ways and pessimistic in others, at the their meeting Monday, March 24.
Hopefully, North Reading will receive a $104 per-pupil aid increase instead of the previously used total of $75. (The actual amount of state aid for education in FY26 has not been determined yet.)
“We worked hard to get to that number, but it still doesn’t move the needle that much,” Tarr said. “We’re working to implement the Student Opportunity Act of 2019, but much of its benefit is for urban communities. Suburban communities have not received much benefit. We shouldn’t have communities getting the minimum per-pupil funding increase. During budget season communities are struggling to get level funding. It’s not unique to North Reading. We’ll try to get more per-pupil funding to a higher level.”
(The Student Opportunity Act of 2019 calls for every district and charter school in the commonwealth to develop three-year plans that identify key disparities in student learning opportunities and outcomes for the student groups they serve and describe how they will utilize evidence-based approaches and strategies to address those needs.)
“Hopefully, we’ll have more aid to address the issues facing suburban communities,” Jones added.
Aid levels are tied to the school district’s foundation budget. In addition to providing aid, the state Department of Elementary and Secondary Education (DESE) establishes minimum spending requirements for each district and minimum requirements for each municipality’s share of school costs, i.e. the foundation budget.
“The foundation budget was supposed to be reviewed yearly, but it wasn’t, until we were able to get a Foundation Review Committee together in 2015, but it looked at only half the equation,” Tarr reported. “It didn’t look at the contribution side, at how communities are supporting education. Is the foundation budget adequate? It is not. Adjustments were made and there’s pending legislation to reconvene the Review Committee. We think there’ll be some movement. We’re heading in the right direction, but we have a lot of work to do.”
Nevertheless Tarr cautioned, “If we’re able to get the Foundation Review Committee reconstituted, communities will have to work with them to justify their needs. It’s a few years away, but if you don’t start now, it’ll be further away.”
North Reading’s cost per-pupil is currently $20,852, which is below the state average of $21,377. “We’re getting a good bang for our buck,” Assistant Superintendent for Finance and Operations Michael Connelly said of the numbers. “We’re able to provide a high quality education while containing costs.”
Connelly also cautioned, “It’ll be a difficult year in terms of developing the budget. There are many things that are non-discretionary we have to pay. Revenue collection is above expectations, but we don’t think that will continue and the influx of federal funding related to the pandemic began to tail off last year. We don’t anticipate it continuing. There’s also been an economic slowdown.”
“It doesn’t surprise me to hear you say the number of suburban districts with funding gaps is growing,” School Committee Chairman Scott Buckley told Tarr. “We’re all under the same pressure. Obviously we appreciate the per-pupil funding increase, but we need something different.”
The current School Committee and Department-proposed budget ask to Town Meeting for FY26 for level services is still $41,377,801, with a shortfall of $1,433,045 in the projected appropriation from Town Meeting. Adding in grants and funds from revolving accounts, the operating budget will be around $45 million.
A planned joint meeting of the School Committee, Select Board and Finance Committee on Wednesday, March 26 was canceled, but School Superintendent Dr. Patrick Daly doesn’t think that will affect the budget timeline. “We are having a budget workshop instead of a joint meeting,” he said. (The School Committee and Select Board met separately Wednesday night to hold their workshops.)
“Nothing is finalized,” Connelly added. “We won’t know the final numbers until the end of April.”
Connelly also delivered a March budget update on financial activity through the middle of the month, including issues that may affect the FY26 budget.
“As we enter the second half of the fiscal year despite some financial challenges and unexpected costs the District is in solid financial standing,” Connelly’s update states. “Areas of concern in the budget are related to new costs associated with Special Education tuitions and transportation costs. This may require requests for use of either additional funding or use of the Special Education stabilization account in Fiscal 2025.
“There have been several unanticipated special education out-of-district costs for tuitions and transportation that have arisen this fiscal year to date but the additional $399,842 appropriated to these line items at fall Town Meeting helped bring the budget into balance. There is still the potential for additional out-of-district placement costs this school year, resulting from students moving into the District or in some cases a change in students’ needs. We will need to continue to monitor these costs and line items closely. Currently, the District has 45 students being educated outside the District, with the potential for this number to rise in the coming months. The District continues to see a rising need to provide additional academic support tutoring and compensatory services for Special Education students as well.
“There have been some unanticipated maintenance expenses that have arisen but to date the District has been able to address these needs. Despite some smaller storms the District has remained within budget in the snow and ice and grounds maintenance budget to date but these line items will need to be closely monitored. The District has seen higher gas and utility costs this year due to an increase in gas and electric rates that began in January this year, which has been a challenge.
“Most payroll accounts are within budgeted amounts and the District will monitor impacts of leaves of absence, substitutes and other changes as we move through the fiscal year.
“The food service program is continuing to performing well through the first half of the school year. Currently, 70% of the student population is participating in the school meals program and we have seen an increase in a la carte sales. The District expanded its breakfast program to include the option for all students at all levels to receive a breakfast. We have seen very strong participation in these programs particularly at the elementary level which is leading to increased state and federal revenue.”