Milton town and school officials are grappling with a persistent $1,048,000 funding gap for the upcoming fiscal year, a shortfall that has sparked a sharp debate over whether the district should exhaust its remaining reserves to prevent staff layoffs. During a joint budget presentation on February 4, Town Administrator Nick outlined a plan to bridge a portion of the deficit using $1.5 million in free cash, but warned that the remaining million-dollar hole must be addressed through a combination of school-side cuts or the use of existing revolving funds.

The updated FY27 revenue projections offered some relief, including a $440,000 increase in motor vehicle excise tax forecasts and $225,000 in additional state aid. To stabilize the long-term outlook, the Town Administrator proposed contributing $1 million from free cash into an operating budget stabilization fund to be drawn down over four years, alongside a one-time $500,000 contribution to a town-controlled special education stabilization fund. Nick argued for maintaining the current 69/31 revenue split between schools and town departments, noting that school budgets have grown by 65 percent over the last decade compared to 43 percent for town services. My view is that town and school departments should increase by a like percentage year-over-year, Nick said, adding that his proposal brings town departments to a 3.72 percent increase while schools receive a 3.76 percent bump.

However, the definition of level service became a point of contention among board members. Chair Amanda Serio questioned the equity of the proposed split, suggesting the gap should be viewed as a town-wide challenge rather than a school-specific burden. If we look at us as one budget, there is a million dollar revenue gap in level service across all departments, Serio said. This proposal is actually separating again the town and the schools more so than a holistic view. Select Board member Megan Feloney pushed back, stating that town departments have already submitted lean budgets with no room left to maneuver. I will not support reductions on the town side if funds are not exhausted from the reserves, Feloney noted, referring to the school department’s circuit breaker account.

Superintendent John Burrows defended the district’s strategy of rebuilding its circuit breaker reserves, which recently dwindled to nearly zero, leading to emergency funding requests in previous years. The district aims to maintain a carryover of approximately $2.7 million to $3.1 million to handle unexpected special education costs. We just don't want to spend it in order to fund positions that we don't know if we don't have enough in that savings account... that could result in us not having enough money next year and then we just have to lay those people off, Burrows explained. Member Mark Loring supported the move toward fiscal stability, recalling past crises. I appreciate the $500,000 to support the evolving account, Loring said. We got the message loud and clear that we need to create systems where we can withstand unexpected influxes in expenditures.

The tension between saving for the future and protecting current jobs was echoed by Select Board member Winston Daley, who urged the committee to find immediate solutions for the 2027 budget. We have emails that have gone out to our parents telling them positions are going to be cut, Daley said. Let us finish that conversation then have a discussion about 28, 29, 30 and a potential override. Warrant Committee member Jay Gillis questioned the principle of building reserves during a budget crisis, asking for agreement on how the $500,000 in free cash would be utilized. Member Nathan David Hutto sought technical clarification on the movement of funds, asking, Does that also mean free cash can't be channeled into the school's operating budget and then end up in the circuit breaker account? Nick confirmed that while procedurally possible, town policy discourages using one-time cash for recurring operating expenses.

As the meeting concluded, the conversation shifted toward the sustainability of Milton's current financial model. Member Elizabeth Carroll asked if the proposed infusions would affect the district's permanent funding base, prompting Nick to clarify that the $75.6 million appropriation at Town Meeting would serve as the baseline budget. With future projections showing annual shortfalls of $1.5 million if revenue growth remains at 3 percent, Daley cautioned that the town may need to move up its timeline for a general override. Nick indicated he would return next week with revised long-term forecasts incorporating different growth assumptions.