Ahead of the North Reading School Committee’s public hearing on April 7, 2025 on the Fiscal Year 2026 budget I would like to share some very important updates on the budget for the upcoming school year. At this point in time we are presenting a level service budget with level staffing which represents the same services for students as in the current school year, with no restorations from the cuts from the previous year. In addition, we have a budget gap of $1,476,023 that needs to be reconciled.
What are the budget drivers for the school budget for the school year 2025-26 and beyond?
Like all school districts, the majority of our budget is comprised of contractual salary obligations, which make up 81.9% of our total budget. This includes steps, lane movements, and longevity increases for eligible staff in the North Reading Public Schools and factors in savings through turnover based on historical trends.
Another major driver is the cost of Special Education services both in-district and out-of-district, including transportation for students to outside placements. The tuition prices for many out-of-district providers has increased at a significant rate in recent years, and the number of students needing services has also continued to rise.
Our operational building and fixed costs, as well as utilities, elementary enrollment, and the needs of our specialized programs round out the drivers for our school department budget.
The Impact of the Failed Override on the North Reading Public Schools
The override request presented at the June 2024 Town Meeting factored in the school district’s needs for this school year (2024-25) as well as the following two years (2025-26 and 2026-27). Once the override failed at the ballot last year the district needed to immediately make cuts to address the $1.2 million budget gap.
Those cuts included both existing positions and other positions that would have provided level services for all students, meaning students in classrooms in 2024-25 do not have the same level of support and resources that students had the previous year. This gap will continue to widen in 2025-26 and beyond as we will be cutting additional positions and programs for the upcoming school year in order to reduce the budget gap of $1,476,023 for FY26.
Positions identified to be cut in order to balance the budget for 2025-26 which will be discussed on April 7, 2025 include the following:
- Administrative Restructuring (2 positions)
- Elementary Teachers (2 positions)
- Middle School Teachers (4 positions)
- World Languages and Computer Science
- High School Teachers (1-2 positions)
- Special Education Elementary
- Paraprofessional Positions (1.2 FTE)
In addition, the School Committee will be discussing increasing fees and tuitions associated with the following:
Positions that were cut from the budget in 2024-25 and not replaced include the following:
- Busing
- Athletics
- Performing Arts
- Kindergarten and Pre-K Tuition
- Facility Rental Rates
Positions that were cut from the budget in 2024-25 and not replaced include the following:
- Academic Interventionists (3 positions)
- Guidance Counselor (1 position)
- Technology Technician (1 position)
- Classroom Teacher (2 positions)
- Special Education Teacher (3 positions)
- School Nurse (0.5 reduction to Floater Nurse position)
- Paraprofessionals (4 positions)
- Facilities (1 position)
- Athletic Coaches (3 positions)
None of these positions were restored and other cuts were made to expenses for school and district budgets, as well as adjustments to the busing and transportation fees for students.
How will retirements, resignations, and other staffing decisions impact the reductions?
Each year there are resignations, retirements, non-renewals and other leaves of absence.
Whenever possible, the individuals losing a position due to a reduction in force will be hired into a vacancy in order to minimize unemployment expenses and retain highly qualified individual employees.
Have there been any additional expenses realized for 2024-25?
Yes, as discussed at the September 21, 2024 School Committee meeting we have seen an increase in our special education, transportation, and out-of-district tuition costs. This can be attributed to some unanticipated scenarios that arose late last school year and others that have arisen this year. We are also aware of other potential costs on the horizon, resulting from recent move-ins and newly identified student needs requiring additional support above and beyond the out of district placement due to the complex nature of the profile. The District budgeted for transportation and placement costs for 40 students this year, up from 37 in FY24, and we are currently at 45 students as of October 1st. At the October Town Meeting, $399,842 was appropriated to help to offset these costs for the current school year.
Are these concerns unique to North Reading?
No, unfortunately the rising costs for operations have been a consistent need across the commonwealth and the budget drivers for our district are similar to those in many other cities and towns. Last spring there were 46 override votes, with 57% of those failing. The budget drivers in these districts are consistent with our own and we are committed to continuing the transparency around our needs to the entire community.
Next Steps
As we discussed in our presentations last year, the concerns we have for this upcoming year will continue to mount in the years that follow given that our costs are continuing to increase and the available revenue from the town cannot support our needs.
As we move forward with the budget process for FY26 we will continue to identify potential cuts and be sure to communicate those impacts with all stakeholders in the school community.
In addition to the Public Hearing on April 7, 2025 there is also a Budget Vote scheduled for April 28, 2025 as well as Town Meeting on June 9, 2025.
How will retirements, resignations, and other staffing decisions impact the reductions?
Each year there are resignations, retirements, non-renewals and other leaves of absence.
Whenever possible, the individuals losing a position due to a reduction in force will be hired into a vacancy in order to minimize unemployment expenses and retain highly qualified individual employees.
Have there been any additional expenses realized for 2024-25?
Yes, as discussed at the September 21, 2024 School Committee meeting we have seen an increase in our special education, transportation, and out-of-district tuition costs. This can be attributed to some unanticipated scenarios that arose late last school year and others that have arisen this year. We are also aware of other potential costs on the horizon, resulting from recent move-ins and newly identified student needs requiring additional support above and beyond the out of district placement due to the complex nature of the profile. The District budgeted for transportation and placement costs for 40 students this year, up from 37 in FY24, and we are currently at 45 students as of October 1st. At the October Town Meeting, $399,842 was appropriated to help to offset these costs for the current school year.
Are these concerns unique to North Reading?
No, unfortunately the rising costs for operations have been a consistent need across the commonwealth and the budget drivers for our district are similar to those in many other cities and towns. Last spring there were 46 override votes, with 57% of those failing. The budget drivers in these districts are consistent with our own and we are committed to continuing the transparency around our needs to the entire community.
Next Steps
As we discussed in our presentations last year, the concerns we have for this upcoming year will continue to mount in the years that follow given that our costs are continuing to increase and the available revenue from the town cannot support our needs.
As we move forward with the budget process for FY26 we will continue to identify potential cuts and be sure to communicate those impacts with all stakeholders in the school community.
In addition to the Public Hearing on April 7, 2025 there is also a Budget Vote scheduled for April 28, 2025 as well as Town Meeting on June 9, 2025.
