The Milton School Committee’s Finance Subcommittee moved to align town policy with state law during its Wednesday morning meeting, recommending a 2% funding ceiling for the district’s Special Education (SPED) stabilization fund. The shift, which replaces a previously discussed flat cap of $750,000, could allow the reserve to grow to approximately $1.5 million, providing a larger safety net against volatile education costs. Chair Mark Loring noted that the change incorporates feedback from Select Board members to ensure the policy remains flexible and legally sound.

Business Manager Katie noted that special education expenses continue to outpace traditional economic benchmarks. Special education costs are increasing exponentially, more so than inflation, she explained. I think it's okay to shoot for that higher number knowing we may not get there for years. While the subcommittee initially considered a lower ceiling, members agreed that tying the cap to a percentage of net school spending prevents the need for frequent policy revisions. Amanda emphasized the practicality of this approach, stating, If it's a percentage, you don't have to revisit the specific number every year to keep it relevant. It's already established by law.

The updated policy also introduces a $50,000 minimum withdrawal threshold to prevent the district from approaching town leaders for minor expenses. Mark explained his plan to refine the language for an upcoming first reading, saying, I'll clean up the language to make it clear that standard practice is for surplus school funds to transfer into this account via free cash, subject to the Select Board, Warrant Committee, and Town Meeting.

The committee also debuted a draft policy for the Circuit Breaker reserve fund, which mimics the structure of the stabilization fund. Katie shared optimistic news regarding state aid, reporting that a state supplemental budget may provide Milton with an additional $259,000 for fiscal year 2026. This potential windfall comes as state officials look to increase reimbursement rates from 61% to 75%. Under the proposed local policy, the district would aim for a reserve floor equal to 75% of reimbursements, with a ceiling of 100%.

Nathan raised questions about the management of excess funds should the district surpass its legal ceilings. Katie clarified that any balance exceeding one year of reimbursement is typically closed out to the town’s general fund, eventually becoming free cash. Nathan suggested editorial changes to the policy objectives to streamline the document, while Mark confirmed the draft would be ready for its first reading by the full School Committee.

Looking ahead to the May 7 Town Meeting, the subcommittee discussed strategies to improve budget transparency for residents. Members suggested including a district profile in the presentation to remind voters of the scale of Milton’s student population and staff. Nathan recommended providing data on student outcomes and per-pupil expenditures across comparable districts. We should share a good chunk of what was at the Warrant Committee, but condensed, Nathan said, noting the importance of showing the human capital impact of school spending.

The presentation will also highlight the diversity of student achievements. Responding to suggestions to include college enrollment data, Amanda urged the committee to remain inclusive of all student journeys. I want to be conscious of recognizing different paths—trade schools, service, vocations—not just college, she said. The subcommittee plans to work with Superintendent John and staff to develop highlight slides that showcase the graduating class's varied plans and the high percentage of students currently supported by IEPs or 504 plans.