NORTH ADAMS, Mass. — The Finance Committee on Wednesday recommended a fiscal 2027 spending plan of $22 million that had been approved by the School Committee on Tuesday. 

 

The spending plan of $22,393,775 is an increase of $757,554 over this year, or 3.5 percent. It will be funded through the Chapter 70 state education grant estimated at $16,796,682 (based on the governor's budget); school-choice funds of $1,446,419, up $506,411; and local funding of $4,150,673 (also based on the governor's budget), up $161,942 or 4.06 percent.

 

Based on new numbers from the House and Senate, the city's portion could drop to $4,049, 353.

 

"A lot of our advocacy this year is around Chapter 70 and the various funding formulas," said Superintendent Timothy Callahan during the public hearing preceding the committee meeting. "We as a School Committee, but certainly I as an individual and other members of the administrative team, have participated in various sessions to advocate for more funding from Chapter 70, a massive part of our district budget."

 

Chapter 70 is critical to the school budget, with nearly 80 percent of its funding coming through the state. 

 

Business Manager Nancy Rauscher explained to the Finance Committee that the schools have "hugely benefited from that over the last few years, with significant increases" based on the district's needs and community profile.

 

"This is the first year that we've been considered a minimum aid district," she said. "What that means is you're held harmless. You're still getting what you were given ... but the addition is just a minimum eight addition. This year, it's $75, per student. So it literally is 75 times the number of students, and at that time it was 1,192 students, when they did this."

 

The School Committee also voted to use $1,448,692 in school choice funds to reduce the pressure on the city's finances. Rauscher estimated school choice revenues of about $800,000 for this year. 

 

Callahan pointed out that this is a level-service budget and while there were no staffing cuts, there was some restructuring and reallocating resources, and positions that were not filled. 

 

In response to questions about maintaining services, the superintendent said they could not make cuts and sustain the school system. 

 

"If you actually do the math out, we will either need, at some point, a larger city contribution, or making cuts in the magnitude of cutting 17 teachers per year every year," he said. "You can do it one year, and then you have class sizes of 28, not great. ... that the next year, you have class sizes of 42. We can't pack them in classrooms. So there's not many years where we can make that level of significant cuts."

 

Higher costs driving the budget include health insurance, special education and out-of-district costs. The district currently has 21 students in out-of-district placement and 47 in in-district specialized programs. About 40 percent of Brayton pupils are on individualized education programs and 62 percent of children ages 3 to 5. 

 

Callahan explained that the city is responsible for educating special needs children beginning at age 3, but the state does not reimburse prekindergarten costs. 

 

The district is project $3 million in tuition costs this coming year but will partially offset by circuit breaker, or state reimbursement, funds of $1.6 million and balanced by school choice funds. 

 

Rauscher and Callahan went through the spending plan line by line with the Finance Committee, explaining the data and reasoning behind some changes. 

 

The Finance Committee voted to recommend the budget to the full City Council with member Lillian Zavatsky abstaining as her husband works in the school system. 

 

In other business, the committee recommended the pension contribution and debt schedule.

 

The pension contribution line is $3.55 million, up $127,000.

 

"This represents the city's share of our payments for our retiree payload, city employees who have retired," said Mayor Jennifer Macksey, adding the data is reviewed by the Pension Board. "There really isn't a lot of debate around this number."

 

Committee Chair Lisa Blackmer said "most of the people working here right now are paying their actual own pension. ... eventually, this number will come down, I think he said was it 2028-2029, it will be fully funded so then it will really just be a small percentage of what is the city share."

 

Treasurer/Collector Jessica Lincourt went through the long- and short-term debt and interest payments for the fiscal 2027. 

 

The city will pay out $385,000 in principal on long-term debt and $249,550 in interest. These borrowings include Colegrove Park Elementary School and its feasibility study, to be paid off in 2043 and 2030, respectively. 

 

It also includes a land acquistion (2043), water treatment plant equipment (2028), and a broom sweeper (2038).

 

Short-term debt is $535,000 and interest $296,763. These borrowings include the library belvedere of $208,500, the flood control feasibility study of $500,000, the Greylock School project of $22 milloin and the new fire truck at $1.75 million. 

 

Macksey and Lincourt said the school project is being staggered in borrowing and so far is at $16 million.

 

"It's also important to remember, as we continue down this path, the [Massachusetts School Building Authority] is reimbursing us 80 percent, so we're taking all of that into consideration as we advance it," the mayor said.

 

Macksey explained that the short-term loans will be rolled into a bonding, probably when the city goes to bond the school project. She also informed the committee that she may request a borrowing for a new vacuum truck for the Department of Public Works as the current one is 25 years old.