Milton school officials revealed a significantly narrowed budget gap this week, announcing that the projected revenue shortfall for the upcoming fiscal year has been reduced from $2.1 million to $1 million. Despite the improved financial outlook, leaders warned that bridging the remaining seven-figure deficit will require a combination of staffing reductions and new revenue from increased student fees. The School Committee Finance Subcommittee confirmed that a draft of a level-service budget, including $1 million in proposed cuts, will be presented publicly for the first time next Wednesday, ahead of the winter break.

Member Mark Loring noted that while the Town Administrator found positive news regarding local receipts, the district still faces difficult choices regarding personnel. Loring emphasized the importance of discussing these changes privately with affected staff before the numbers go public. The Superintendent stated they need internal conversations to start picking away at how to make up that revenue gap, Loring said. They want to have conversations with people before it is a public conversation that their position may not be here next year. He added that by next Wednesday, the district will begin the iterative process of naming specific position cuts publicly.

Warrant Committee members present at the meeting questioned whether the district’s efforts to rebuild its reserve accounts might be coming at the expense of current employees. Guest Lorraine, a member of the Warrant Committee, asked about the sequence of these decisions, noting, if the financial situation is different based on the conversation last night, I would assume that could inform the conversations you no longer need to have with staff. Fellow Warrant Committee member Elaine inquired if the district’s goal of building up reserves could be scaled back to save jobs, asking, I’m curious if that is being considered as a place to potentially reduce in order to keep personnel?

Loring responded that everything is being considered, but highlighted the delicate balance of maintaining the circuit breaker revolving fund, which helps the district cover unexpected special education costs. While the fund started the year with only $8,000, it is now projected to end the year with $1 million due to higher-than-anticipated reimbursements. While the Select Board has pressured the schools to use more of these reserves to offset the current deficit, school leaders expressed caution about depleting the buffer. We don't want to make FY27 nice but have FY28 be a disaster because we have no buffer for unanticipated costs, Loring explained.

To help close the gap, the committee is also looking at internal revenue sources, including potential fee hikes for buses, after-school programs, and sports. These increases come at a time when student needs are reaching record levels. Although overall enrollment has remained flat at approximately 4,400 students over the last five years, the population of students requiring specialized services has spiked. Loring shared data showing that 18.6 percent of Milton students now require special education services, the highest level in the town's history. Chair Amanda Serio pointed out that even as some students move back from out-of-district placements, the demand for in-district support remains high. We have seen a big spike in referrals, especially in the middle school, Serio said. You need psychologists or speech therapists to do those evaluations to determine if they need services.

The subcommittee plans to meet again on February 26 at 6:00 PM to finalize the draft budget before presenting it to the full School Committee. Member Nathan David Hutto confirmed his availability for the late February session, which aims to provide the Warrant Committee with a formal budget by their late March deadline. As the town moves toward closing the warrant in early April, school leaders pledged to keep the lines of communication open. Meeting with you during the process is helpful so we don't get to the end and have a wall of questions, Loring told the Warrant Committee members.