Milton school officials face a remaining $1 million revenue gap for the FY27 budget, a significant improvement from previous $2.1 million estimates that nevertheless leaves the district eyeing potential personnel reductions. During a joint meeting of school and warrant subcommittees, Member Mark Loring reported that increased local receipts on the town side allowed for the narrowed gap, though he cautioned that the administration must still identify $1 million in cuts before a revised budget draft is presented next week.

The financial outlook is bolstered by a proposed $500,000 free cash allocation from the Select Board, intended to help the district rebuild reserves that were severely depleted following the 2024 fiscal year. While the town is currently level-service funded, Loring noted that Town Administrator Nick Milano does not expect the revenue figures to shift further. The schools, the revenue gap is now reduced to a million dollars, which is obviously way better than 2.1, Loring said. But at that point, it seems like we need to get into the weeds of what are the things we will need to cut or do in order to make up that million-dollar revenue gap.

The committee is balancing these cuts against a backdrop of historic pressure on student services. Data shared during the meeting revealed that while total enrollment has remained relatively flat at approximately 4,400 students over the last five years, the percentage of students requiring special education services has climbed to 18.6%—the highest level in Milton’s history. Warrant Committee member Lorraine questioned the trajectory of these figures, asking, The overall level of students—has it increased, decreased, or is that level from last year? And then the special education percent in-district and out-of-district, has that gone up?

Chair Amanda Serio explained that the district is seeing a particular surge in the volume of required evaluations. I think what they've seen is an increase in referrals... a huge number of referrals in the beginning of school, Serio said. So then you're having a psychologist or a speech therapist or an OT who has to do those evaluations to then determine if they're getting the services. I think that's where we've seen a big spike.

To help bridge the gap, the district is considering drawing more heavily from its Circuit Breaker revolving fund, which receives state reimbursements for high-cost special education students. The fund is projected to end the current year with a $1 million balance, roughly $200,000 higher than anticipated due to favorable state funding. However, Loring expressed hesitation about depleting the fund entirely to save positions, noting that the district is already increasing its utilization of those funds by 8% for the coming year to ensure long-term sustainability into FY28. He described the fund as a necessary buffer for mid-year move-ins or unexpected out-of-district placements.

Warrant Committee member Elaine pressed the committee on whether reserve building should take priority over maintaining staff. I couldn't find the amounts that you all were going to put into reserves, she noted, asking if those funds were being considered as a place to potentially reduce amounts in order to save personnel. Loring responded that while every option is on the table, including increases to bus and sports fees, the district must balance immediate needs with the goal of slowly accumulating a rollover balance to handle emergency costs.

The timeline for finalizing these decisions is tight. Member Nathan David Hutto inquired about how the shifting revenue numbers would affect the rollout of the revised budget, asking, Does that mean that your timeline for your anticipated draft budget has changed? Loring confirmed the schedule remains firm, with a revised draft expected next Wednesday. He emphasized that the administration is currently holding sensitive internal conversations with staff members whose roles may be impacted by the $1 million in necessary cuts. The Superintendent confirmed yesterday that we are on track... It'll be the first time we'll hear about any position cuts as a School Committee and therefore publicly, Loring said, adding that the goal is to provide clarity to employees before the upcoming winter break.

The committee also briefly touched on federal funding risks. Hutto asked, Has any of our federal funding been affected so far? Serio confirmed that while Title funds were briefly delayed over the summer, federal support currently remains stable. She noted the district continues to monitor federal policy as a potential risk factor that further justifies maintaining healthy local reserves. The subcommittees reached a verbal consensus to meet again on February 26 to review the full School Committee’s response to the revised budget proposal.