Superintendent presented an updated district improvement plan incorporating feedback on numbered improvement strategies, a revised ‘data points’ evidence column, year-one-through-three timelines, expanded ELL language, and a corrected list of seven core value areas. The committee discussed the plan’s lack of an overarching destination statement and agreed the committee’s role is to set strategic direction for the next iteration. Quarterly check-ins beginning in October or November 2026 were agreed upon. The plan was approved 4-0.

Brown School’s plan targets typical and stretch growth in math, reading, and writing using i-Ready, mCLASS, and Wit & Wisdom assessments; assesses preschool curriculum consistency for a district-wide preschool development initiative; and establishes a school-based safety leadership team. Third-grade writing proficiency was noted at 34% at Brown versus a statewide average of approximately 24%. Glover’s plan emphasizes vertical and horizontal teacher collaboration, PBS (Positive Behavioral Supports) expansion for student and staff recognition, and enrichment through parent volunteer involvement. Both plans were approved 4-0.

Essex Tech currently serves 1,926 students in 26 programs on a 166-acre Danvers campus. Marblehead’s 35 enrolled students represent a 2.2865% participation share, yielding a $749,000 assessment covering operations, capital, and transportation. The school accepted 500 students in the class of 2030 from over 1,500 applicants. Article 21 approved by hand vote.

Revenue: Total available FY2027 revenue is $96.5 million, down $600K year-over-year. Tax levy grows $2.1M; state aid up ~$200K; local receipts down ~$1M (interest income decline, conservative motor vehicle excise estimate); free cash use reduced by $2M.

Level-service cost: $104.2M — $27.9M town operating, $51.3M schools, $25M shared employee benefits. Deficit: $7.7 million.

Deficit drivers: Wages +$3.1M (collective bargaining), health insurance +$1.7M (~10% GIC increase), new curbside contract +$1M, pension +$500K, out-of-district SPED +$300K, other +$500K.

Cost accountability framework: Finance Committee reallocated shared benefits; true town/school split is 38%/62% (vs. prior 49%/51% presentation). Town share of deficit: $4M; school share: $3.7M.

Town-side gap closure ($4M):

• New curbside trash fee (Board of Health): ~$2.2M
• Department cuts totaling ~$2.4M, including:
  • Library: $700K cut + $170K materials eliminated (8.25 FTEs; decertification risk)
  • Other general government: $590K (OPEB $250K, stabilization $250K, workers comp $90K)
  • Community Development & Planning: $300K (dept head, sustainability coordinator, grant coordinator positions cut)
  • Meaningful reductions in DPW, finance, public buildings, cemetery, COA, town clerk, police, building inspection, Rec & Park
• Unemployment costs increased ~$600K due to eliminations
• 22 FTE town positions eliminated (~12% of workforce; ~18 currently filled, ~4 vacant)

School-side gap closure ($3.7M):

• One-time $1.5M prepayment of FY2027 out-of-district SPED tuition using FY2026 funds
• $750K teacher/IA salary cuts; $450K from vacant positions
• $350K expenses shifted to revolving funds/grants
• ~$650K further reductions in substitutes, supplies, curriculum, technology, administration
• 18.25 FTE school positions eliminated (~4% workforce; 11 vacant, 11 layoffs)

Bond rating: S&P affirmed AAA but revised outlook from stable to negative, citing budgetary stress. Reserves at ~2% vs. 5% policy target.

Debt service: New bond issuance of $26.2M (net $24,975K after $1.5M premium) at 3.75% true interest cost. Total FY2027 debt service: $10,971,016. Total general fund debt outstanding: $146,297,626 through 2056.

Finance Committee unanimously recommended yes on Article 23.

Essex Tech Superintendent Dr. Heidi Riccio and School Committee Representative Mark Stroud presented the impact of a new state-mandated vocational lottery on Marblehead’s enrollment and assessment costs.

Background on the lottery: DESE eliminated grades, teacher recommendations, and personal interviews as admissions criteria. The only permissible factors were attendance (fewer than 27 absences) and discipline, which Essex Tech opted not to use. The result was 1,750 applicants for 427 seats this year — students could apply by simply checking a box with no further investment.

Seat allocation change: Larger member communities (Danvers, Beverly, Peabody, Salem) proposed an allocation formula based on total K–12 enrollment. Essex Tech countered using eighth-grade enrollment per community. Under that formula, Marblehead received a minimum target of 39 seats — compared to a historical average of 10 acceptances per year. Danvers, which typically sends 60 students, was allocated 39 seats but had 132 applicants; Marblehead had 28 applicants for its 39 seats.

Current enrollment trajectory: Of the 28 Marblehead applicants, 7 withdrew, leaving 21 accepted as of the meeting. Over 50% of accepted Marblehead students hold IEPs. The net new students entering the system represents a roughly 50% increase over current enrollment at Essex Tech from Marblehead.

Financial risk: A FinCom member calculated that at the current trend of ~15 net new students per year from a base of 35, the Marblehead assessment could exceed $2.5M during the three-year override period, and in a worst-case scenario (full 39-seat fill rate) could reach over $4M by FY32 — compared to approximately $750,000 today. The FY27 assessment already rose over 9% year-over-year.

Legislative outlook: State representatives are voting on Amendment 1580 to House Bill 5500 to restore merit-based admissions for vocational schools. The superintendent was not optimistic about its passage.

The FinCom noted the assessment was already voted as part of the budget and this discussion was focused on future risk and calls for more community involvement in the admissions allocation process.

Asst Supt Mike’s monthly update.

• FY26 unencumbered balance: just under $2.1M, down about $614K from last month. The push to close out FY26 expenses was deliberate.
• Reserved for next year: $1.5M to subsidize the FY27 out-of-district tuition line via prepayment (driving the budget vote later in the agenda).
• March surprises: HVAC failures at Brown and Glover; bus repairs; elevator repairs. “When it rains, it pours.”

Roof projects in motion: Veterans Middle School roof restarting within two weeks; Marblehead High School roof – three small sections done during April vacation (the section above the meeting room, a section by the concession stand, and one on the far side). Sections selected to avoid HVAC/exhaust units. “Praying for nice weather.”

Committee approved the FY27 line-item budget at $47,620,287, a $3,157,460 reduction from FY26.

Two passes of cuts: the original $1.7M reduction (level-services to balanced), then an additional $1.5M when the town asked for deeper cuts. Each FTE in the count below is a real position even when not yet bargained to a name.

Position changes (22 total / 18.25 FTE)

• 11 currently filled – reduction in force, subject to bumping under the unit contract.
• 11 currently unfilled – vacancies in the budget that won’t be funded.

Where the cuts land

Plus: 0.4 SLP reduction, pause the curriculum-refresh cycle, −$137,938 daily-substitute line (building subs working), 1.0 maintenance cut, heating-fuel and electricity reductions tied to the new contract and usage.

The prepayment

The biggest single move was prepaying $1.5M of FY27 out-of-district tuition from the FY26 unencumbered balance. The reserve fell from $12.1M last year to a target of $1.5M – spending the safety net to keep teachers in classrooms.

Three remaining safety nets after the move: circuit breaker (SPED reimbursement); a smaller SPED stabilization fund (requires town meeting authorization); and the Finance Committee stabilization fund (broad, hard to access).

“I would rather risk one more year than have any impact – if we can reduce the impact on education for another year, hopefully forever, but for another year, I think it’s more critical than us holding something in reserve.”

Build assumption: 6% over prior-year budget. Plus $540K in unanticipated FY27 increases (incl. Educational Consortium 9.4% average / 12% high-end tuition increase notified one week prior) that had to be absorbed.

Five high-school students – Michael Labosier, Max Colin, Don Obesi, Caleb Sidman (juniors) and Lucy Molinari (sophomore) – presented the work of Marblehead High School’s Magic Coalition: Marble Headers Alliance for Growth, Inclusion, and Connection.

The group formed in response to the October 7 incident in which a swastika was reportedly drawn in a second-floor men’s bathroom. Existing reporting channels for hate incidents had not produced the result students wanted, so a peer-led structure was created to give students, teachers, and the broader community a clearer way to speak up.

What the group has done

• Ran a full-school assembly during MAGIC block, broken into grade-level sessions (freshmen, sophomores, juniors, seniors).
• Set up suggestion boxes around the building.
• Planning a Village School (sixth-grade) assembly at end of May / start of June – aiming to reach younger students before patterns set in.

“Hate is not necessarily in someone’s heart, but more in their surroundings and in their environment. When someone is raised in an environment where they don’t know what their words mean, then it leads to things like this with repeated acts of hate happening.”

“We’re really trying to provide hope in the students’ minds that they have a place to go if they feel they’re being discriminated against. We really just want to make people feel comfortable for who they are.”

The peer-to-peer framing was deliberate – students argued the message lands differently from a peer than from a teacher. Committee thanked the group for the work.

Article 21 approved at $749,920 for the FY27 assessment. The trajectory matters more than the number:

Two drivers compound:

• The school changed to a lottery system, raising Marblehead’s allocated seats from 35 to 39.
• Cost per student rises roughly 3% per year.

Participation is mandatory under the regional-school agreement. The Finance Committee is working with the North Shore Collaborative on the assumptions and may pursue state-level relief.

Board concern: this line item is one of several externally-imposed costs (alongside GIC health insurance) the MOU cannot constrain. A further allocation jump in FY28 could blow through the override’s three-year envelope.

The Finance Committee chair presented a detailed overview of the budget process and deficit before moving the vote on Article 23 (Expenses of Several Departments).

Revenue shortfall: | Driver | Change | |—|—| | Prop 2½ levy increase | +$2.2M | | Local receipts (interest, excise) | −$1.0M | | Free cash contribution | −$2.0M | | Other (state aid, enterprise indirect) | net small increase | | Net change in available revenue | −$600,000 |

Available revenue: approximately $96.5 million; level-services expenses after all department meetings: approximately $103.8 million; resulting deficit: $7.2 million.

How the deficit is addressed:

• Curbside trash ($2.2M): Removed from the general fund; funded by a user fee unless voters approve a Prop 2½ override.
• Town-side cuts ($1.9M net): Required approximately $2.5M in gross cuts (due to unemployment cost offsets) resulting in approximately 22 FTE reductions, of which 18–19 are filled positions. Departments most affected: community planning, library (8.5 FTE cuts), public buildings, finance. Represents ~12% of general-fund town employees.
• School-side cuts ($3.2M needed): Schools have identified $1.7M in cuts (14 FTEs, mostly vacancies/retirements/attrition); the remaining $1.5M in cuts has not yet been specified by the School Committee.

The committee also highlighted that “other general government” costs (pension, health insurance, OPEB) are up 8% year-over-year and that approximately $12.5M of those costs are attributable to school employees and retirees. GIC health insurance rates have risen 5–12% annually over the past four years.

Vote: $122,762,030 total; $109,777,938 raised from taxation and other available funds; $12,984,092 from enterprise funds. Approved unanimously.

Article 21 appropriates $749,920 for Marblehead’s share of Essex North Shore Agricultural and Technical School District costs, up approximately 13% over prior year. The committee noted this year’s number is reliable, but expressed concern that a new lottery-based admissions system and reallocation of seats among member communities could significantly raise costs in future years. Marblehead’s seat allocation has increased, and the final enrollment count — which determines the assessment — is not known until March each year. The town administrator and FinCom chair are scheduling a call with Essex Tech administrators to model future-year projections.

Superintendent and CFO Mike presented the school department’s FY27 budget of $47,620,285, voted by the School Committee the previous day. This is $2,566,000 below the level-service budget of approximately $51,687,000, a reduction of approximately 5.22%.

Phase 1 cuts (to reach level-funded baseline of $49,120,285)

• 14.75 FTE positions eliminated or left vacant
• Reallocation of general fund items to special education grants and revolving accounts
• New copier lease savings
• Level-funded supplies (removing the 2% increase from level-service)
• Reduced natural gas and electricity budget (natural gas supply rate locked in for three years in February 2025 at a favorable rate)

Phase 2 cuts (additional $1.5M reduction)

• Specific line items not yet determined; to be presented at the April 9 School Committee meeting

Offsets applied

• Special education circuit breaker: increased allotment to stay within the one-year reserve limit ($2M received)
• Retirement savings from staff departures (limited this year)
• Pre-K/kindergarten revolving account offset nearly doubled (noted as not long-term sustainable beyond ~2 budget cycles)
• Federal/state grants level-funded (IDEA grant risk of ~10-20% reduction flagged as a concern; IDEA grants total ~$700,000–$800,000)

The superintendent stated further FTE reductions will directly affect students through larger class sizes, reduced services, and safety impacts. The Finance Committee noted that DESE data shows Marblehead’s per-pupil spending and staffing ratios are roughly median among comparable communities, and that the phase 1 cuts represent a right-sizing aligned with declining enrollment trends.

Abbott Public Library Director Kim presented the FY27 library budget of $857,633—a reduction of approximately $700,000 from the level-service request and the largest proportional cut on the town side of the budget. Key findings:

Staffing impact

• Current staff: 24 (20 active; 4 vacancies including one imminent retirement)
• Under the approved budget: estimated 13 staff members, all part-time
• Positions eliminated: library assistants (green), pages (orange), and part-time union positions (purple); only core full-time professional staff (blue) retained in a reduced capacity

State certification risk

• The budget falls ~$600,000 short of the Municipal Appropriation Requirement (MAR), defined as the average of the last three years’ total municipal appropriations plus 2.5%
• A waiver application is not viable because the library’s cuts are disproportionately large relative to other town departments; the Board of Library Commissioners would not approve a waiver under those conditions
• Decertification would make Marblehead one of only five decertified libraries in Massachusetts; the other four are very small Western Massachusetts towns with no modern library
• After decertification, re-certification requires a minimum of three additional years of meeting standards even if funding is restored

NOBLE network consequences

• NOBLE (North of Boston Library Exchange, 17 libraries) provides the shared catalog, internet connectivity, patron database, cataloging infrastructure, bulk technology purchasing, EBSCO databases, interlibrary loan, and professional services
• NOBLE membership renewal is due by June 2026 for the period ending June 2027
• NOBLE member libraries may vote to deny access to decertified municipalities
• Building equivalent in-house infrastructure would cost an estimated $250,000–$300,000
• Interlibrary loan volume was approximately 28,000 instances in FY25
• State aid lost: approximately $44,000 annually (currently used for materials)

Service reduction

• Under the approved budget: estimated 25 hours/week open, no evenings, no Saturdays
• Children’s room and teen room would likely close
• No municipal funding for new books, movies, or digital subscriptions
• A rejected alternative scenario adding $310,000 would have reduced staff from 24 to 16, maintained 45 hours/week, and allowed a waiver application; that scenario was not adopted

Closure timeline The director stated that under the $857,633 budget with no override, the library would not be able to sustain operations and would close by approximately December 1, 2026, due to staffing attrition and inability to cover shifts.

“With this budget and no override, it will close after this point. We can’t survive on the budget we’re talking here.” — Kim, Library Director

The $10 million taxpayer investment in the library building would sit underutilized. The Finance Committee approved the budget unanimously while expressing that this was the least-desired vote of the session.

The waste and health director presented the FY27 health department budget line by line. Key items included:

• Salaries: Department head (30% health / 70% waste split), public health nurse and health inspector combined under one line, senior clerk (50/50 health/waste split), and nighttime clerical staff.
• Marblehead Counseling Center: $60,000 allocation; the director noted a prior effort to double this to $120,000 was reversed due to budget shortfalls, and he plans to request an additional $60,000 through a future override tier.
• Bloom app: $14,000 annual cost currently covered by opioid settlement funds; director intends to return to that funding source for renewal.
• Total budget: $339,320, a 4.07% increase over FY26, driven primarily by a senior clerk moving to a higher step.

The board voted unanimously to approve the budget. A Finance Committee hearing (“Super Saturday”) was noted for the following Saturday morning.

Before individual department reviews, the town administrator provided budget context. He explained that the proposed FY27 budgets are built on two assumptions absent in Scenario A: implementation of a solid-waste user fee generating just over $2 million in new revenue, and a request for the schools to absorb an additional $1.5 million in cuts beyond their already-reduced level-funded budget.

The overall deficit was described as approximately $7.7 million. The schools are responsible for approximately $3.2 million of that (their own cuts plus the additional $1.5M), while the town side carries roughly $3.3 million. Board members discussed the importance of establishing a formal cost-responsibility model for dividing surpluses and deficits between the town and schools going forward, and noted a plan for quarterly meetings with school finance staff.

Town Administrator Thatcher and CFO Alicia Benjamin presented two FY27 budget scenarios:

Scenario A — Straight cuts

• Total cuts required: $7.7 million (town side: $5.7M; school side: $1.9M)
• Would defund six departments: Community Development & Planning, Cemetery, Health (except mandated health agent), Council on Aging, Library, and Recreation & Parks
• 56 positions eliminated from an active town workforce of approximately 185–190
• Position breakdown: 1 chief procurement officer, 1 police officer, 1 vacant firefighter, 2 public works, 6 cemetery, 3 health, 6 COA, 23 library, 8 recreation & parks, 5 community development & planning

Scenario B — Fee shift + additional school reduction

• Total cuts: $7.9 million (school side: $3.4M; town side: $4.4M)
• Proposes moving approximately $2.04 million in curbside trash/recycling costs to a Board of Health fee structure (~$254/year per household based on ~8,000 households; opt-out available; discounts for tax-exempt residents)
• Asks schools for an additional $1.5 million reduction (beyond the $1.9M already cut) to proportionally share rising employee benefit costs; schools carry ~62–66% of GIC active employee costs
• Reduces impacted positions to approximately 20.5 FTE; all six departments remain open
• Leaves $1.4 million unfunded even under Scenario B, identified as a starting point for override discussion

Health insurance caveat

GIC was scheduled to vote on rates the following day. Town had been carrying a 15% increase assumption, revised to 11%; a favorable GIC vote could shrink the gap further. Open enrollment April 1 adds additional variability.

Board sentiment

All five board members signaled support for Scenario B as a working framework. Board members called for formal guidelines on how revenue increases and deficits are split between the town and schools going forward, and indicated a combined override with the schools for FY27.

The chair explained that liaison meetings with individual departments and schools had been postponed because the town had not yet finalized a balanced budget. A Select Board meeting on Wednesday is expected to confirm a path to balance and provide department heads with their available budget figures. The chair estimated the overall gap — after removing capital and reserve items from the State of the Town figure — at approximately $6.5–$7 million. Health-insurance savings of up to $800,000 would partially reduce that gap but not eliminate it.

Town Administrator Thatcher and CFO outlined the FY27 budget development timeline across five phases (June 2025 through town meeting). The board is currently in Phase 4: individual department reviews aimed at producing a balanced budget for presentation on February 25.

Key financial pressure cited:

Total new tax revenue from Prop 2½ growth: approximately $2.2 million Projected healthcare cost increase alone: approximately $1.9 million

This leaves virtually no room for any other cost increases before cuts must be made. Additional pressures include a new trash contract and normal inflationary costs.

Health Insurance: The GIC vote on plan redesign (changing copays/deductibles to reduce premiums) is scheduled for February 26. The town’s blended healthcare cost increase is currently tracking at approximately 14–15%, though the final rate will depend on Marblehead’s specific enrollment mix across HMO, PPO, family, and individual plans.

Board discussion on override strategy: Board members debated whether to pursue a one-year or multi-year override. Most members leaned toward a three-year structured approach but acknowledged that without final numbers, no commitment could be made. One member cautioned against presenting voters with a large lump-sum multi-year ask; another noted the school committee had recently suggested it may not need an override. The board agreed to review a balanced budget plus preliminary override scenarios at the February 25 meeting.

A ‘Municipal Bootcamp’-style public forum for residents — featuring department heads explaining their operations — was proposed for March.

Superintendent Roberto and Assistant Superintendent of Finance Mike Ling presented the proposed FY27 school budget, developed at the town’s direction to be level-funded at the current year’s appropriation of $49,122,850. Providing the same services at the same funding level would require approximately $2.56 million in additional revenue, of which $1.6 million represents increased town appropriation need under a level-service scenario.

Enrollment context: District enrollment was 2,564 in FY24-25 and 2,394 as of October 1, 2025 (the DESE reporting date), though the superintendent noted enrollment had risen to 2,435 as of February 3, 2026. Since FY16-17, enrollment has declined from 3,144 to 2,435 (approximately 22%), while licensed teacher FTEs declined from 263.9 to a proposed 212.35 — roughly a 20% reduction over that period.

Budget offsets and efficiencies (Round 1):

• Increased draw on circuit breaker reimbursement
• Reduced retirement savings assumption
• Near-doubling of draw from the pre-K/kindergarten revolving account
• Moving select staff salary costs (assistant business manager, facilities administrative assistant, assistant director of student services) partially into revolving accounts and federal grants
• Level-funding of all supply, PD, and technology lines
• Copier lease renegotiation and paper cost reduction (~$30/case from ~$38-39/case)
• Vacant summer technology position and vacant HR assistant position not filled
• Removal of a teacher-in-charge stipend at Glover School
• Reduction of 1.75 FTE EL teachers at Village School (census-based)
• Reduction of 1.0 FTE math intervention at Veterans Middle School
• Reduction of 0.2 FTE to 0.8 FTE FDER teacher (already in effect)

Staffing reductions (Round 2 — positions eliminated or not filled):

• 1 elementary teacher
• 1 teacher at Veterans Middle School
• 3 teachers at Marblehead High School
• 0.4 FTE EL teacher at Glover
• 1.0 general ed instructional assistant (elementary)
• 0.4 FTE speech-language pathologist
• 1 special education teacher at Village (vacant, not filled)
• 1 BCBA coordinator (vacant, not filled)
• 1 maintenance worker

Total: 9 positions eliminated/not rehired plus 5.7 FTE not rehired plus a stipend = approximately 14.75 FTEs plus stipend.

Federal grants: FY26 federal grants totaled approximately $932,343 (Title I ~$99K, Title II ~$41K, Title III ~$12K, Title IV ~$10K, IDEA ~$247K, early childhood ~$21K, and other). FY27 grants are designated TBD but expected to be level-funded or slightly lower.

Concerns raised by committee:

• Several revolving funds used to cover ongoing salaries are finite; the special education revolving (~$300K balance) may support the draw for only one year; the pre-K/K revolving is estimated sustainable for two to three years.
• Federal grant uncertainty, particularly Title II (mentor/mentee program), which is a state mandate if funding lapses.
• Out-of-district tuition rate risk: collaboratives may increase rates by up to 10% for FY27, compared to the 4% assumption in the budget.
• Transportation spike in prior years has been right-sized; FY27 assumes modest 6% increase.
• A $100,000 cut to the electricity line (~8% reduction) was flagged as a line to watch closely.
• DESE data cited: high-needs population grew from 27% to 32% of enrollment between 2016 and 2025; autism diagnoses up 34%; neurological/health-related disabilities up 48% in that period.

Pre-K/K tuition: The district remains one of approximately five Massachusetts communities still charging for full-day kindergarten. The administration had planned to move toward eliminating that fee but deferred given the level-funded directive.

Next steps: Budget will be posted publicly; a public hearing is scheduled for February 26; the school committee vote is planned for March; Finance Committee budget hearing anticipated in March-April; Town Meeting in May.

School department official Mike presented a request for the Select Board to approve a four-year copier lease with UIIO Business Services — an extension beyond the standard three-year term that requires board approval. The new contract replaces 29 machines district-wide at a savings of approximately $22,000 per year versus the current contract.

Key features of the new agreement:

• Click-charge model: The vendor supplies toner and service; the school pays per copy (~0.4 cents/copy black & white, ~4 cents/copy color), eliminating the need to purchase and store cartridges.
• Badge-release printing: Staff print to a single universal driver and release jobs at any machine by tapping their ID badge, improving print confidentiality and reducing paper waste.
• Volume tracking: The system logs usage by user and machine, allowing management to identify underused equipment and reduce waste.

Mike noted the district also separately secured a better paper price of $30/case through Staples, down from $38–$39/case, after the Crest Collaborative did not run its usual bid this year. The school committee had already approved the contract; the Select Board’s role was solely to authorize the extended lease term.

The superintendent and assistant superintendent presented a detailed enrollment update.

Key figures:

• Total enrollment (Oct. 1, 2024–25): ~2,560 (including METCO and staff children); resident-only count ~2,395
• Decline since 2019: approximately 28% (roughly -3% per year over seven periods)
• No graduating class currently exceeds 200 students; all classes are under 200
• Marblehead has the second-lowest birth rate in Massachusetts according to a Pioneer Institute white paper (data through 2019)

Where Marblehead resident students go (selected figures, students previously enrolled in public schools): | Destination | Approx. count | |—|—| | Charter schools | 82 | | St. John’s Prep | 78 | | Tower School | 168 | | Epstein Hillel Academy | 32 | | IS (unnamed) | 41 | | Essex Tech (vocational) | 35 |

Transfers out (last school year): 56 students moved out of state; 6 enrolled in homeschool

Approximately 81–83% of Marblehead resident students attend public schools, consistent with comparable districts. Administration noted declining enrollment is spread across grade levels and does not directly translate to equivalent staffing reductions. Neighboring towns with more affordable housing development (e.g., Swampscott added ~305 affordable units over four years) show different enrollment trends. The committee requested census data from the town clerk to supplement the analysis.

Student Services Director Lisa Marie (assisted by Assistant Director Victoria Ryan, watching remotely) presented an overview of the department’s scope, which includes special education, Section 504, McKinney-Vento (homeless students), foster care, and restraint/safety training.

Student counts (current year): | Category | 23–24 | 24–25 | 25–26 (current) | |—|—|—|—| | Students on IEPs | 505 | 439 | 469 | | Students on 504s | 226 | 249 | ~279 | | Out-of-district placements | 48 | 53 | 50 | | Foster care | 7 | 6 | 4 (fluctuating) | | McKinney-Vento (homeless) | 11 | 7 | 7 | | Restraint-trained staff | — | 53 | 61 |

Accountability (district-level, students with disabilities):

• Achievement: 0/12 points in 2024 → 7/12 in 2025
• Growth: 6/8 in 2024 → 5/8 in 2025 (slight decline in math)
• Chronic absenteeism: 0 points (area of concern)

Accountability (high school):

• Achievement: 1–5/12 in 2024 → 7/12 in 2025
• Growth: 2/8 in 2024 → 4/8 in 2025
• Graduation/dropout/extended engagement: 4/12 in 2024 → 8/12 in 2025
• Chronic absenteeism: 2/8 in 2024 → 0/8 in 2025 (area of concern)

The director announced the hiring of a new team chair for Glover School (starting soon) and a new 0.6 administrative assistant at Glover. Programs described include inclusion services, language-based programs (grades 2–12 at all schools), therapeutic programs (K–12), and ABA programs (pre-K through age 22). Deescalation training using a common-language framework was rolled out district-wide in November by the district’s three BCBAs.

The presentation covered 21 College Board–approved AP courses across English, world languages, history/social studies, math, science, and computer science. Key data points:

Marblehead High School received the AP Honor Roll gold award for equitable access to AP coursework. Committee members raised questions about whether selective colleges grant credit for AP scores and suggested surveying graduates, and whether AP enrollment drives school ranking metrics.

Three-Year Revenue vs. Expense Forecast — December 10, 2025

Revenue summary (FY27 preliminary) Total estimated revenue: approximately $109 million — roughly $700,000 less than FY26 — driven by:

• Property tax levy up ~$2.2 million (~3%)
• Local receipts down ~$1 million (primarily lower investment earnings as ARPA funds have been spent and interest rates have declined)
• Free cash projected to decline; preliminary estimate of ~$5.7 million available for all purposes in FY27 vs. $9.5 million certified last year (of which $7 million was used to balance the budget)

Key expense drivers | Line | Estimated change | |—|—| | Salaries & wages (all departments) | +~6% (contractual steps, market hiring) | | Health insurance | +10–17% estimated; GIC rates set in spring; private market seeing 23–26% increases | | Pension | +~3% (schedule-based; ~$500K increment) | | Trash collection | +~51% in FY27 (new 5-year contract; current favorable contract expires); then ~4%/yr | | Utilities | +~3% | | Out-of-district SPED tuition | Volatile; prepayments declining as budget tightens |

Projected deficits (preliminary)

• FY27: ~$7 million
• FY28: ~$11 million (cumulative)
• FY29: ~$15 million (cumulative)

The Finance Director noted that approximately 80% of all expenses are personnel-related (salaries, benefits, pension). The board discussed that a balanced budget without an override will be prepared showing service-delivery impacts, with a State of the Town address planned for January 28 as a key milestone. The board noted other communities that have recently passed overrides (Melrose $13.5M, Brookline $12M, Arlington $7M, Belmont $8.4M, Hingham ~$8M). Discussion emphasized that Prop 2½ remains a key accountability mechanism and that the process should be strictly analytical before any override is presented to voters.

Next steps: Department-by-department budget review in January; free cash certification expected January–March; state-of-the-town address January 28; contingent override scenarios to be developed alongside the balanced budget.

Following a deadlock in the policy subcommittee, the full committee received a first reading of proposed policy IIKF (Competency Determination), required under 603 CMR 30.03 after MCAS was eliminated as a graduation requirement.

The policy requires students to earn a passing grade in specified 9th- and 10th-grade courses in ELA, mathematics, and science to demonstrate competency. U.S. History will be added as a requirement starting in 2027. Students who do not pass required courses will be placed on a proficiency plan using portfolios or equivalent measures. An appeals process is included. The policy must be submitted to DESE.

The policy subcommittee had been deadlocked over whether the passing grade threshold — currently defined as the lowest passing letter grade (D, approximately 60–64 depending on the grading scale) — should be set higher, such as a 64 or 65. One member argued that the broader implications for credit-granting and student eligibility made such a change significant enough to warrant data analysis and administrator input before the committee acts. The superintendent and assistant superintendent noted that most comparable districts use a passing grade aligned to their standard credit-granting threshold.

A motion to define a passing grade as 64 for all subjects was made and seconded but ultimately amended: the committee voted 4-0 to approve the first reading and direct the superintendent and assistant superintendent to bring comparison data from similar districts to a January meeting agenda item. The committee also voted 4-0 to waive the third reading and place the policy on the December 18 agenda for a final vote.

Committee member Jen raised concerns about enrollment decline, noting the district went from approximately 2,754 students on June 7 to 2,511 as of the current week — a drop of over 200 students. The most recent weekly report showed a 25-student decline in a single week.

The administration presented October 1 DESI enrollment data from 2019 through 2025, comparing actual enrollment to grade-level averages. The data showed enrollment below average in every grade level in the most recently reported year. The average annual enrollment decline across all grades over the period was approximately 3.8% per year.

The superintendent noted the administration can pull data on where departing students go (homeschool, private school, moved out of district) and committed to providing a more detailed analysis at the next meeting. The committee discussed implications for Chapter 70 state aid, which is formula-driven based on enrollment, and for the FY27 budget process.

Assistant Superintendent Mike reported that the unencumbered budget balance fell by approximately $65,000 over the prior month, from $3.34 million to $3.27 million, indicating accurate salary encumbrances. A negative budget line of approximately $227,000 was explained as a placeholder for anticipated staff retirements and will be redistributed between salary lines without requiring school committee approval.

The budget subcommittee has met several times. The administration is conducting one-on-one meetings with all building principals to review staffing and resources. A tentative budget calendar has been developed; the committee agreed that budget documents will be released to the public simultaneously with their presentation to the school committee.

Pfifferling distributed the FY27 budget process calendar.

Key dates

School Committee must vote on the budget before Finance Committee recommendation to town meeting.

Principal meetings and staffing review timeline

Robidoux outlined that administration would meet with principals December 1-15 to review staffing needs and identify critical positions versus potential reductions in light of enrollment decline from 2,727 to 2,511 students (8% drop).

Robidoux expressed concern about publicly sharing detailed reduction lists in December for a May vote, due to staff morale. The committee clarified that they were seeking an overall sense of adjustments, not specific position details, in December.

FinCom liaison clarification

Finance Committee members clarified they function as a liaison team per town counsel, not an official subcommittee. No formal recommendations or minutes required from them. School Committee members are required to produce minutes. The November 17 meeting was a School Committee subcommittee meeting only, not a joint meeting.

Enrollment decline review

• Enrollment dropped from 2,776 (June) to 2,511 currently
• Superintendent Robidoux noted decline includes a larger exiting senior class than incoming class
• Committee questioned whether reporting mechanisms may have inflated or deflated previous numbers

Preschool tracking

Students enrolled for assessment purposes may not ultimately attend, inflating counts:

• Last year: 168 students
• This year: 78 students

Exit interviews

Committee member noted exit interviews / surveys were requested last year but not implemented. Repeating the request now: families leaving the district could give the committee actionable information on why.

Class-size data ties to general-education teachers, representing approximately 30% of total salary costs.

User fees and athletic budget accounting reviewed.

Current structure

• When user fees were raised, all coaching salaries moved from the local budget to a revolving fund
• Approximately 50% of athletics transportation costs funded from user fees; 50% from local budget
• User fees set at $500 per student with family cap; fees have not been adjusted while salaries increase 2-3.5% annually

New accounting structure

Pfifferling restructured user-fee accounting into separate revolving funds for improved transparency and oversight:

• High school athletics
• High school clubs / activities
• Middle school programs
• Elementary activities

Sustainability concern

Pfifferling cautioned that recurring salary expenses require recurring revenue, not fund balances. The current setup has all coaching salaries on a revolving fund that’s depending on the user-fee revenue stream — if fees don’t rise but salaries do, the revolving fund will run down.

Committee agreed fund balances should be used for one-time expenses only.

Asst Supt of Finance and Operations Michael Pfifferling presented a detailed spreadsheet organizing the FY26 approved budget by:

• Department
• Staffing category
• School building
• Role type

Groupings included administration, clerical, teachers (by grade level and specialty), instructional assistants, special-education services (licensed and support), guidance, nurses, transportation, maintenance, and technology.

Reflected only appropriated budget funds, not grant-funded positions.

Where the dollars sit

Instructional coaches under discussion

Four full-time district-level instructional coaches plus building-level teacher leader stipends, totaling approximately $732,000 district-wide. Coaches work on curriculum development, implementation, professional development, and classroom support.

Committee requested written roles-and-responsibilities descriptions for instructional coaches and administrative positions to communicate value to the public.

Guidance and adjustment counselors

Reviewed guidance and school adjustment counselor positions, noting confusion in categorization between general education and special education roles. Administration acknowledged the need to properly categorize staff based on licensure and actual service delivery for accurate state reporting.

Special education detail

~25% of total salary costs allocated to SPED, aligning with the district’s 20-23% SPED enrollment. Out-of-district tuition costs higher than desired; building internal programs is a multi-year goal per the Superintendent. Recent increases in initial-evaluation requests and move-ins with significant needs have impacted staffing demands.

Administration

School-level admin ~3% of total salary; district admin ~4%; clerical ~3.5%. Total ~10%. Superintendent Robidoux stated no areas for administrative reduction.

The budget subcommittee reported completing a second round of analysis of existing staffing broken down by building and category. The next step involves the superintendent and finance director meeting with building administrators. A joint finance subcommittee meeting is scheduled for December 1. The committee noted a calendar of budget milestones leading to town meeting was presented and may be shared more broadly with the community.

A board member noted the school committee was scheduled to vote on November 20 on a contract for replacement of the high school roof (a full replacement rather than a repair, per subcommittee deliberations). If approved, the Select Board would hold a brief special meeting around November 25 (Tuesday) to approve the contract, which is time-sensitive due to the need to order HVAC components that accompany the roof work.

Asst Supt Julia Ferreira presented district MCAS data with principals providing school-specific analysis – the longest agenda item of the night at roughly 1h19m.

District summary

• District performed above state averages in core subjects with moderate growth
• ELA district SGP of 51 – moderate growth range
• Math similar moderate growth above state benchmarks
• Science: 57% meeting/exceeding vs 43% state average
• MCAS no longer required for graduation; top 2% eligible for state scholarships

Special populations (Student Opportunities Act plan)

• 36 English learners – varied growth by grade, strong in grades 6 and 10
• Special education students – high growth in ELA grades 5 and 8, low growth in grades 4 and 10; math results uneven across grades, with transition-year challenges

School-specific results

• High school: 10th-grade performance declined due to reduced testing time and attendance issues after the graduation requirement was removed; remained above state averages and ranked top third for math, top 20% for science
• Veterans Middle School: exceeded state averages in all subjects; ELA top 14% statewide for 8th grade; math top 16% (7th) and top 18% (8th)
• Village: 5th grade top 20% statewide
• Glover: 3rd grade top 13% with 17% growth since 2022
• Brown: strong performance with kindergarten attendance impact noted

The mid-year correction

Out-of-district special-education expenditures had shown $700,000 over budget because all tuition had been charged to the local budget instead of being split appropriately with circuit-breaker accounts.

The issue was rectified during the meeting week: $1.7 million in expenses moved from local budget to circuit breaker. The adjustment restores approximately $1 million to special education, offsetting the previous year’s prepaid tuition.

Financial position

Legal expenses flagged

Central administration legal services have already spent $32,000 in July-August against a $117,000 annual budget. Monthly monitoring continues; no spending freeze anticipated, unlike the previous year.

Payroll-system note

Payroll is running through SoftRight while general-ledger expenses process through Munis. Plans to consolidate into Munis for automatic salary encumbering. Several salary categories remain unencumbered: lead-teacher stipends, custodial overtime, unemployment costs, contractual lane changes, athletic salaries, 403 match. Manual purchase orders are creating encumbrances September-June.

Buried in the Subcommittee Updates section, the Budget Subcommittee’s report to the full committee:

“Budget subcommittee met twice with finance committee liaison; all departments directed to prepare level service budgets; timeline includes December preliminary information, January-February work, February voting, March finance committee review, town meeting approval.”

Why this matters

Two weeks earlier on October 17, 2025, the same Budget Subcommittee had requested a zero-based budgeting approach examining staffing needs by building against enrollment projections. The Superintendent had committed to school-by-school staffing breakdowns and a methodology development meeting on October 28 before budget packets distributed to principals on November 3.

The October 28 methodology meeting does not appear in the meeting catalog. The next School Committee meeting (this one, Oct 30) directs the budget process the opposite way: level-service, which carries forward last year’s staffing and just adds contractual increases.

The Oct 30 minutes (this transcript) contain no mention of zero-based budgeting, no school-by-school staffing breakdowns, and no methodology development.

The historical pattern

This is now the fourth time zero-based budgeting has been raised at School Committee without a formal exercise materializing: 2020-06-08, 2022-07-19 (Cresta’s full methodology presentation), 2023-07-06, 2025-10-17. Each time the conversation ended in committee.

The full FY27 timeline announced at this meeting:

• December 2025: preliminary information
• January-February 2026: budget work
• February 2026: committee voting on individual lines
• March 2026: Finance Committee review
• May 2026: Town Meeting approval

Finance Director Alicia presented the FY27 revenue forecast, noting that property taxes — approximately 80% of the town’s revenue — grow by roughly $2.2M per year under the Proposition 2½ cap. State aid is projected to increase by only 1%, and local receipts are projected at approximately $8.1M, down from $10M actual in FY25, driven by declining motor vehicle excise taxes, lower investment earnings (dropping from a peak of roughly $2M+ to approximately $800,000 as interest rates fall from 5% to 3.75% and ARPA balances are spent down), and other factors.

Key cost pressures identified:

• Health insurance: projected 14% increase for FY27, approximately $1.5–$1.6M more than FY26; GLP-1 drugs, aging population, and hospital utilization cited as drivers
• Trash contract: estimated $800,000–$1M increase when new contract is bid
• Pension: approximately $900K annual increase
• Personnel: 80% of budget; union contracts settled at ~3%
• ARPA funds: fully spent by end of 2026, eliminating a one-time revenue buffer

Fin Comm Chair Alec (online) noted that free cash certified last year at approximately $9.5M, with $1M going to capital, $500K to reserves, and $1M unappropriated; FY27 free cash is estimated at $4–$6M with $5M projected for the operating budget. Board members expressed concern about continued reliance on free cash to balance the budget and the need to adhere to financial policies around reserves. The stabilization fund currently holds approximately $1.5M. The Town Administrator noted that the next step is a general override, the town’s first since 2005.

Budget calendar and forecasting requirements.

• Preliminary budget calendar reviewed (additional dates expected)
• Assistant Superintendent to provide three-year contract impact estimates for the wages budget
• Level-service budgets for FY26, FY27, and FY28 already completed based on existing contracts
• Town-wide three-year forecasting still needed to illustrate funding challenges across all departments

Key dates confirmed

Adjourned at 3:08 PM.

Capital project preparation and early-education feasibility study planning.

Capital list (preliminary)

• High school security upgrades
• Auditorium improvements
• Gymnasium refinishing
• Kitchen-classroom renovation
• Playground safety improvements
• Wireless access point renewals (proposed as a three-year rolling lease to avoid annual capital requests)
• Bus replacements from 2013 and 2015

The Asst Supt emphasized presenting all needs to town regardless of affordability to keep items on the radar, even when they won’t make the current cycle.

Early-education feasibility study (FY26 budgeted)

Exploring expansion of preschool programming beyond the current IEP-focused model. Evelyn School is being considered as a potential location.

Current preschool: integrated classroom serving ~70 students total at 14-15 per classroom (typically 8 tuition-paying students plus up to 7 special-education students). Local private preschools have waiting lists, suggesting market demand for expanded public programming.

Additional programming under discussion:

• 18-22 year old special-education program (currently outsourced)
• Early intervention services for birth to age 3 through federal Medicaid funding

Funding options noted

Existing budget capacity, town free-cash allocation, debt-exclusion overrides, and “potential school-specific override requests with historical precedent for bundling school items with town-wide debt exclusion articles.”

The school department reported a $2.8M unexpended balance in FY26 budget so far, with $900K-$1M prepaid for special-education tuitions, leaving $1.8M uncommitted. Salaries are encumbered until the Munis payroll system is operational January 1. Detailed budget update scheduled for the October 30 meeting.

Out-of-district special-education detail

Total OOD special-education cost in FY26: $6.362M

Tuition range per student: $70,000 for collaborative programs to $300,000 for residential placements.

Circuit breaker mechanics

Circuit breaker provides 75% state reimbursement for costs exceeding the $56,000 per-student threshold, but funding depends on statewide claims versus legislative appropriations.

Extraordinary relief provides additional funding when costs exceed 125% of budget. The 2019 budget crisis with a $900,000 shortfall was cited as justification for maintaining reserves.

Free cash certification status and revolving-fund reconciliation update.

• Free cash certification in process as of October; expected completion January-February 2026 (the previous year was delayed until May)
• FY25 revolving funds reconciled, with balance-forwards loaded into Munis
• Balance boards for revolving accounts issued the previous week

What’s new

Finance Committee review has been expanded over the past three years to include revolving accounts alongside general fund budgets, for a complete property-tax-impact picture. At this meeting the Assistant Superintendent demonstrated revolving-fund offsets within the general-fund budget – for instance, kindergarten tuition revenue offset against teacher and assistant salaries.

The committee was told this was the first time any town department has shown transparent offsetting in budget presentations.

Committee requested a comprehensive list of all revolving funds and their purposes for FY27 budget workshops, to enable informed public responses and prevent town-meeting misinformation.

School department returning $466,000 to the town from FY25 budget closeout, all to free cash.

The amount was higher than estimated because of late transfers using ARPA funding for items purchased before December 2024, to ensure ARPA dollars were spent before expiration.

Closeout drivers:

• Surpluses – prepaid tuitions, salary savings from an unpaid day during negotiations
• Overages – out-of-district special-education costs not properly budgeted

Reporting accuracy

Committee requested detailed budget-to-actual reporting with line-item breakdowns for future reference. The Assistant Superintendent walked through the salary categories: professional (licensed staff), clerical, and other (non-licensed); plus contracted services, supplies, and miscellaneous.

Acknowledged challenge: budget reporting accuracy is constrained by software transitions and historical coding issues. Some staff were incorrectly coded as professional salaries in past years; the Munis software transition is expected to resolve categorization. Asst Supt Pfifferling committed to cleaner reporting and to sending the complete FY25 closeout report to all committee members.

Committee requested a zero-based budgeting approach examining staffing needs by building based on enrollment projections.

The framing:

• Enrollment declined 800 students over eight years, “requiring staffing justification”
• Level funding with contractual increases would require $1.7M in cuts
• That’s potentially 30 professional staff positions, roughly 10% of staff
• The Superintendent noted that the current process “already considers contractual obligations and service requirements”

Staffing data requested

Categories the committee asked to see, school by school:

• General-education teachers
• Special-education teachers
• Instructional assistants
• Lunch monitors
• Operational support
• Specialized positions (OT, PT, speech-language, psychology)

Analysis to examine contracted hours by building rather than per-student assignments. Special-education director to provide staffing-level recommendations alongside state guidelines for comparison. Data to be presented in Excel format with detailed breakdowns by school.

Next steps committed to

• Oct 28, 2025 (2:30 PM) – methodology development meeting before budget packets distribute to principals
• Nov 3, 2025 – budget packets distribute to principals
• Superintendent committed to providing school-by-school staffing breakdowns with justifications
• “Data needed to defend budget requests at town meetings and address public concerns about staffing levels relative to enrollment.”

What actually happened next

The October 28 methodology meeting does not appear in the meeting catalog of 331 minute-level entries (FY19-present). The next School Committee meeting on 2025-10-30 instead saw the Budget Subcommittee direct all departments to prepare level-service budgets – the procedural opposite of zero-based.

This is the fourth time zero-based budgeting has been raised at School Committee without a formal exercise materializing (2020-06-08, 2022-07-19, 2023-07-06, 2025-10-17).

CFO Mike presented the FY25 fiscal close. Key figures:

The school department will return approximately $240,820 to the town from the LEA budget. An additional $213,122 in ARPA reclassifications was processed the same day, bringing the total returned to approximately $454,000.

The CFO also covered summer facility improvements across all buildings: Glover HVAC finalization (with $50,000 PTO donation for new playground equipment), Brown School bottle-filling station, Vets gym wall padding and pack seat reupholstery, high school fire-door progress and new entrance doors, and purchase of a Ford Transit E-350 electric van for special-education transportation.

A transition to the Munis financial system is underway; full payroll and HR modules move to Munis on January 1, 2026. The CFO cautioned that budget reporting may be less detailed until January–February due to the transition. Committee members requested monthly budget reports and noted the legal obligation to vote budget transfers during the year.

A detailed enrollment presentation showed total K–12 enrollment of 2,513 students: Marblehead High 808, Vets 351, Village 484, Brown 445, Glover 318, plus 107 in other programs (31 homeschooled, 46 out-of-district, 30 private placement). Historical data showed enrollment peaked near 3,300 around 2017 and stood at 2,963 in 2019–20, a decline of roughly 450 students over five years.

Key grade-transition drops: grade 3→4 (−15), grade 6→7 (−9), grade 8→9 (−15). Committee members noted an approximately 8% year-over-year decline and asked for more granular data by grade. The superintendent and CFO committed to a deeper analysis for the first October meeting, including tracking where departing students go (private school, homeschool, out-of-town moves).

NSEQ projections anticipate a modest enrollment rebound: +2.1% in 2026–27 and +0.6% in 2027–28, trending toward roughly 2,700 students within 10 years. Committee members discussed the importance of not overcorrecting staffing decisions given the projected recovery.

The Select Board and School Committee jointly interviewed four candidates to fill the seat vacated by a departing member. Each candidate was asked identical questions covering budget challenges, outside funding reliance, carrying out voter intent from the June election, managing difficult team members, budget-cut guiding principles, fact-based financial reporting (variance analysis, DESI dashboard), committee dynamics, and what excited them most about the role.

Melissa Lucas — CFO with 18 years of finance/accounting experience; parent of three children newly enrolled in Marblehead schools. Priorities: financial transparency, long-term planning, restoring community trust, and improving student outcomes. Noted 6% enrollment decline and called for zero-based budgeting. Said she would need to do detailed analysis before committing to an override position.

Sarah Fox — Five-year veteran of the School Committee budget subcommittee, described as having deep institutional budget knowledge. Flagged an approximately $3 million projected deficit for the coming year tied to collective bargaining outcomes and a 6.5% enrollment decline (the largest single-year drop she had seen). Advocated strongly for zero-based budgeting and encumbrance tracking; noted revolving funds were used last year to bridge the gap.

Yale Weissman — Municipal attorney with prior school committee advisory experience. Focused on anti-discrimination/antisemitism policy, student accountability, and community discourse. Less detailed on budget specifics; emphasized fact-based decision-making and open communication.

Mark Schwartz — 15+ years of classroom teaching; most recent role in marketing/project management at a tech firm. Emphasized mental health and student wellbeing, transparency through simplified public communications (e.g., a plain-language blog), and building community trust post-strike. Acknowledged limited direct Marblehead budget involvement but cited Swampscott budget process experience.

One member (Jim Sison) recused himself, leaving eight voting members. On the roll-call vote, six members named Melissa Lucas, one named Sarah Fox, and one named Mark Schwartz. A motion to appoint Lucas carried unanimously on the formal vote. She was directed to be sworn in the following day.

A board member described reviving an earlier proposal to seek a debt-exclusion override to fund expanded mental health services for Marblehead youth. The proposal centers on asking the Marblehead Counseling Center to present data on its waiting list for residents 21 and under, along with estimated costs and a multi-year timeline.

The board also discussed the current budget trajectory: initial discussions with the Finance Committee about increasing the counseling center’s funding from approximately $60,000 to $120,000 were progressing until late-stage town budget cuts intervened. The board agreed to continue pushing for the $120,000 line item while simultaneously developing the override article.

Chair Massaro noted he had been drafting a paper citing McKinsey research estimating that global investment in adolescent mental health could generate $5 trillion in global GDP, and a National Bureau of Economic Research working paper quantifying similar benefits for the U.S. at approximately $168 billion. He proposed submitting such materials to the Finance Committee.

Town meeting warrant articles are due approximately the third week in January, giving the board several months to prepare.

Assistant Superintendent Julia Ferrera, instructional coaches Angie Graziano and Emily Perez, and a district-wide teacher committee presented the results of a comprehensive science curriculum review — the first in many years — conducted across the 2024-25 school year.

Recommended Adoptions by Level

Total estimated cost: ~$200,000, already approved in the FY26 budget.

Key discussion points:

• K-4 rollout will be phased, with FOSS used as a bridge while teachers receive professional development
• Grades 5-8 will have an aligned, standards-based scope and sequence for the first time
• High school digital access allows students to review lab videos and text at home
• Committee member Fox raised a concern about lab block scheduling; Ferrera committed to collecting data from science educators on lab frequency and reporting back
• Finance director confirmed the $200,000 is within the approved budget envelope

The committee voted 5-0 to approve.

Gina Hart, clinical social worker at the high school, presented results of the annual MGH-administered substance use and mental health survey (84.5% response rate, administered October 9).

Mental Health Trends (positive direction)

• Anxiety: declining trend over three years
• Depression: 13% this year (down from prior years)
• Psychotic experiences (seeing/hearing things not there): 8% — comparable to state data; committee noted this is roughly 1-in-10 students
• Suicide attempts: decreased from 3% to 1%; approximately 10% reported having made a plan

Substance Use

• Lifetime alcohol, nicotine, and cannabis use comparable to state
• Regular alcohol use (1-3 days/past 30 days): approximately 4x higher than comparison schools
• 7% of students reported first alcohol use at age 12 or younger (elementary school age)
• Age of first use before 15 significantly elevates addiction risk (nearly 7x higher per CDC data)
• Prescription drug misuse increased approximately 1% year over year

Social Media

• Snapchat and Instagram are top platforms; students average 4-6 hours of screen time daily
• Project Reboot social media programming delivered to grades 7-12 this year

Committee Chair Schaffner emphasized parental responsibility especially during graduation season given the elevated alcohol figures. Hart and Assistant Superintendent Ferrera noted the district adopted its first K-12 SEL curriculum this year and are expanding tiered mental health interventions.

Mike Ling reported that through 11 months (May 31), the district had expended $36.8 million with an additional $8 million encumbered — approximately 96% of budget committed. The unexpended balance of $1.87 million was $580,000 less than at end of April.

Discussion centered on three capital items removed from the budget during the year when the town identified a $2 million projection shortfall:

The superintendent and finance director indicated they would explore prepaying special education tuitions and other district needs before year-end close. The finance director also noted MLD (Marblehead Light Department) agreed to provide lift equipment at no cost for installing a new scoreboard, saving funds.

The Finance Committee presented the $119,479,480 balanced FY26 operating budget, a 6% increase in available revenues over FY25. Key revenue drivers included a ~3% levy increase (2.5% Prop 2½ plus ~0.5% new growth), a 25% increase in local receipts driven by interest income and the new hotels-and-meals tax (~$575,000 year-to-date through March), and $1.5M more in free cash utilization. Personnel costs (salaries, health insurance, pension) represent 75–80% of the budget. Key expense pressures: salaries/wages +4–4.5%, health insurance +8–10%, pension +8–9%, utilities +4–5%, and trash costs projected to spike 35–40% upon contract expiration after FY26.

Budget silos approved:

Holds were taken on Town Counsel (to explain the $2,000 salary vs. $113,000 legal services contract distinction) and the Community Development and Planning Department (a resident questioned five new hires under fiscal constraints). The town administrator explained the department was funded by reallocating salary lines from retired or reorganized positions including the retired town engineer and the prior single town planner position.

Mark Troub, chair of the Essex Tech 20-member school committee, reported the school serves 1,836 students across 27 programs on a 165-acre Danvers campus. For the fifth consecutive year, Marblehead will be assessed at the state minimum contribution. The district has secured over $10 million in competitive grants this year. Thirty-two Marblehead students are enrolled. Article 17 passed 428–12.

Assistant Superintendent Julia Ferrera presented the results of a curriculum review process launched after a DESE tiered focus monitoring finding that the district did not consistently support an ESL curriculum for all English proficiency levels in the high school.

The selected curriculum, Houghton Mifflin Harcourt’s English 3D, will be implemented for grades 7–12 starting the 2025–26 school year. Key details:

• 117 English Learner students are currently enrolled district-wide.
• Teachers at the middle and high school levels were involved in the review and piloted lessons.
• The vendor quote includes professional development and both online and hard-copy materials.
• K–6 EL instruction is aligned to the Wit & Wisdom curriculum already in place; English 3D fills the gap for grades 7–12.
• The program is differentiated to support students from newcomer level through exit proficiency.
• Title III federal funding supports the EL coordinator stipend, professional development, and the English Learners Parent Advisory Council (ELPAC); the committee noted awareness that Title III funding could be at risk.

The committee voted 4–0 to approve the curriculum.

The Finance Committee unanimously recommended the FY26 operating budget of $119,479,480, of which $106,206,380 is raised from taxation and other available funds, and $13,273,100 from enterprise funds.

Budget structure (excluding debt service):

• Base budget (prior year excluding debt service): ~$92.5M
• Total increase in available revenues: ~$5.7M
• Total operating budget before levy-funded warrant articles: ~$96.9M
  • ~51% schools
  • ~25% town-side operating departments
  • ~23% general government (health insurance, retirement, insurance)

Key cost pressure highlights from the FinCom chair’s analysis:

The chair noted the tax levy can only grow at ~2.5% plus new growth (~0.5–1%), totaling ~3–3.5%, while major cost drivers are growing faster. He warned the budget may be significantly harder to balance in FY27 and beyond. The town has balanced without an operating override for approximately 18–19 consecutive years.

A public commenter asked the FinCom to allocate shared overhead costs (health insurance, retirement) proportionally to the school vs. town sides in future presentations, suggesting schools may represent closer to 65% of total cost when indirect costs are included.

The Finance Committee approved $627,323 for the town’s share of the Essex North Shore Agricultural and Technical School District operating budget. The increase reflects both higher per-pupil costs and an uptick in Marblehead student enrollment after several years of decline. A FinCom member suggested establishing a liaison relationship with the district, noting the school’s director is a Marblehead resident; the chair agreed to add it to a future agenda.

Assistant Superintendent of Student Services Lisa Marie Polito and Assistant Director Victoria Ryan presented an overview of the Academic Discovery special education program review, commissioned by the school committee.

Key demographics:

• 28.5% of MPS students K–12 have disabilities, above the state average of 20.2%.
• Students with disabilities perform above the state average on MCAS but below general education peers in Marblehead.
• Suspension rates and dropout rates are higher for students with disabilities than the general population.

Six focus areas reviewed: Program organization and management; student identification and placement; program service delivery; instructional practice; staff support and development; compliance.

Highlights:

• The district exited corrective action ahead of schedule after compliance work by the new team.
• A master tracker, special education procedural manual, and Goal Book IEP software (grant-funded) were implemented this year.
• Language-based and therapeutic programs are under review with Landmark Outreach; entrance/exit criteria and family open houses are planned.
• Restraints dropped dramatically: 72 in the year before last, 49 last year, and only 5 so far this school year (four stand holds, one floor restraint).
• 85% of staff report feeling supported by special education administrators, compared to a near-total no-confidence vote approximately one year ago.
• 59% of parents and 78% of staff perceive special education services as moderately to extremely effective.

Areas still needing work: Co-teaching models, MTSS consistency, transition planning (age 14+), reporting accuracy to the state, and staffing in specialized therapeutic roles.

The committee voted 4-0 to approve the FY26 Marblehead School District operating budget at $49,120,285.

Chair Fox noted that through the fall and early winter the district had anticipated difficulty meeting its budget given town revenue projections, but in early-to-mid January those projections revised upward significantly — a development first announced publicly at the State of the Town and of which even FinCom was unaware until shortly before that event. The superintendent and administration characterized the resulting budget as a level-services budget.

Next steps in the budget calendar: | Date | Event | |—|—| | March 31 | FinCom votes the school budget | | Early April | Warrant hearing; FinCom recommendation issued | | First Monday (and likely Tuesday) of May | Town Meeting |

The schedule of bills totaling $973,745.11 was also approved 4-0 on a separate consent vote.

In response to the earlier public comment, the committee addressed uncertainty around approximately $976,000 in federal grants. The superintendent stated a position of maintaining status quo until DESE issues guidance or there is a legal notification requiring otherwise. The finance director clarified that only about 15% of those funds can be carried into a future fiscal year, meaning proactive belt-tightening would provide little benefit. The committee noted it is working with legal counsel and following DESE’s lead, consistent with all 300-plus Massachusetts school districts facing the same uncertainty.

Committee members noted that several special education salary lines were running 25–40% over budget. This was attributed to two causes: (1) a contractual reclassification of paraprofessionals to tutor-level wages, resulting in an immediate 30–40% pay increase; and (2) out-of-district placements committed in the prior year that were not fully reflected in the current budget (~$2.4 million budgeted with a circuit-breaker offset). The district has applied for extraordinary circuit breaker relief, which if granted would accelerate reimbursement rather than the standard one-year-in-arrears schedule.

Finance Director Mike presented the end-of-February budget update:

Utilities were described as tracking well: gas expended $208,000 against a $262,000 balance; electricity expended $528,000 against a $628,000 balance. The director projected the district should be able to prepay approximately $900,000 in out-of-district tuitions, subject to finance subcommittee approval in April or May.

The Munis financial software conversion remains on track with a July 1 go-live for accounts payable/general ledger and January 1 for payroll/HR.

Of the approximately $4.2M in new revenues projected for FY26, the town’s 50/50 allocation formula directs approximately $2.1M to the school department appropriation. An additional $250K is being redirected from the planned stabilization fund annual contribution to further assist the schools with contractual obligations, bringing the total school increase to approximately $2.35M above the prior year’s appropriation. The CFO noted the schools also turned back funds in the current year, contributing to the strong free cash position.

The budget subcommittee reported on a preliminary FY2026 budget calendar, working backward from the Finance Committee’s warrant hearing deadline of approximately April 7:

The budget hearing and a school committee vote on the budget are separate steps; the committee prefers to allow a few days between the hearing and vote to incorporate any feedback. The chair noted that the committee successfully changed the process so that the school committee now votes on its budget before the Finance Committee hearing, reversing a prior practice.

Other subcommittee updates: CPAC meeting held; Lisa Marie Alito received positive feedback. Communications subcommittee met with Marblehead TV about potential programming including a budget-focused segment and a school committee primer. A policy subcommittee meeting is scheduled for the following Tuesday. The Central Council (PCO) meeting was productive. METCO Director Kaia meets weekly with the superintendent; enrollment period is underway.

Superintendent Du distributed a draft document combining a new competency determination framework and updated graduation requirements now that MCAS scores no longer serve as the competency determination for high school diplomas.

Proposed competency determination (Option 1 — course-based):

• English: Passing grade and credit in English 9 and English 10
• Math: Passing grade and credit in Algebra 1 and Geometry
• Science: Passing grade and credit in Biology plus one additional lab science (Chemistry or Physics)

These align with the subjects measured by the 2023 MCAS. A portfolio option (Option 2) was noted for edge cases; approximately one student has been identified as potentially needing it.

Key discussion points:

• What constitutes a “passing grade” — a D/D-minus — was debated relative to rigor. Six or seven comparable districts reviewed by staff use the same “passing grade” language.
• Committee members asked whether the bar could be higher going forward, while accommodating the complexity of the current graduating class.
• The MCAS Alternative (now called the Alternative Assessment) remains available for students whose IEP teams determine it is appropriate.
• A financial literacy semester course was proposed as a future graduation requirement. Two existing courses in the program of studies were identified as potentially meeting this requirement. Implementation cannot occur for the current or next graduating class given timeline constraints.
• A vote is expected at the next meeting. Committee members asked for the draft to be posted online.

Assistant Superintendent Lisa Marie Alito presented a detailed analysis of 2024 MCAS results for high-needs student subgroups (students with disabilities, low-income students, and English language learners).

Key enrollment numbers (spring 2024 MCAS): | Subject | All Students | High Needs | Low Income | Students w/ Disabilities | ELL | |—|—|—|—|—|—| | ELA | 1,356 | 564 | 192 | 303 | 69 | | Math | 1,362 | 565 | 191 | 303 | 71 | | Science/Tech | 574 | 153 | 51 | 79 | 23 |

Key findings:

• Most high-needs students fall in the “partially meeting” category, with many on the cusp of “meeting expectations.”
• Grades 6–7 high-needs students showed the highest percentages not meeting in ELA.
• Grades 3–8 high-needs performance is comparable to state averages in 2024; in 2022–23 Marblehead was 3–5 percentage points above state in math.
• Grade 10 high-needs ELA student growth percentile (SGP) fell to 33.6 in 2024, slightly below the 40–60 average range — flagged for further investigation.
• Special education subgroup “not meeting” rates are below state averages across ELA, math, and science for multiple years.
• 8th grade high-needs math scores showed the strongest growth trend.

Major announcement: The district received a letter from the Department of Education approving full compliance in all six areas of its corrective action plan — well ahead of the scheduled June 2025 deadline. The committee praised the speed of this achievement.

Academic Discoveries review is nearly complete; final classroom observations scheduled for January 31, with a report expected in February.

Upcoming work: Landmark School Outreach Program is conducting its third visit to observe language-based settings. Athena Learning K-12 is being engaged to consult on therapeutic and ABA programs. A reading profile tracker has been implemented to identify specific reading difficulties for targeted instruction.

FY25 status: After manually re-encumbering all salaries following the new collective bargaining agreements, the district shows approximately $3.8 million in unencumbered balances. The CFO described this as neither alarming nor comfortable given unencumbered supplies and contractor costs still to come.

Special education out-placements: Out-of-district tuition costs exceed the FY25 budget. A $900,000 prepayment made last spring has been fully consumed, with an additional approximately $200,000 projected over that amount — a total overrun of roughly $1.1 million versus what was budgeted. The CFO noted that some placements were not reflected in the FY25 budget as adopted.

Extraordinary relief: The district expects to qualify for extraordinary Circuit Breaker relief from DESE for the current year, which would provide reimbursement faster than the standard one-year lag.

FY26 draft budget: A level-service draft has been prepared. Out-of-district tuition rate increases from placement schools were revised from an early estimate of 14% down to approximately 4.7%. The town’s December 11 projections show a $14 million structural deficit over three years town-wide (figure may be slightly updated due to additional interest income). No target number has been exchanged between the town and the school district yet.

Budget timeline: A budget subcommittee meeting is being scheduled for the first full week back in January. The committee discussed placing override placeholder articles on the town warrant, consistent with prior years’ practice of including a general override and a capital expense override article.

ARPA funds: The town’s ARPA funds must be committed by the end of December; schools are assisting by identifying one-time eligible expenditures including playground resurfacing, gymnasium equipment, and professional development/curriculum materials.

Brown/Lucrecia & Joseph Brown School (Principal Mary Maxfield):

• 64% ELA, 61% math meeting/exceeding — above state averages of 45% and below
• Math trend line improved from 46% (2022) to 53% (2023) to 61% (2024)
• Low-income subgroup improved from 35% to 65%
• Ranked in top 14% of K–3 schools statewide for ELA and top 25% for math
• Areas of focus: closing gap for students with disabilities, early intervention, volunteer-led enrichment groups

Glover School (Interim Principal Frank Kowalski):

• 63% ELA, 58% math meeting/exceeding
• ELA improved from 54% (2022) to 63% (2024)
• Emphasis on relationship-building and neighborhood school model to reduce absenteeism
• Rated “moderate progress” by DESE (limited data sources at K–3 level)

Village Elementary School (Principal Scott Williams):

• Fourth grade: 48% ELA, 65% math; Fifth grade: 56% ELA, 52% math; Sixth grade: 53% ELA, 58% math
• Areas of growth: fourth-grade ELA declined from 64% to 48%; fifth-grade math declined from 61% to 52%
• Sixth-grade exceeding category for ELA grew from 7% to 19%
• Implementing WIT & Wisdom writing professional development (rescheduled from January PD day)
• Sixth-grade math olympiad competition launched district-wide this fall

Marblehead Veterans Middle School (Principal Matt Fox):

• Cumulative progress toward goals: 87%, tied for 7th highest among Massachusetts middle schools
• 42 of 44 possible accountability points earned
• Chronic absenteeism reduced from 17.4% to 11% in one year
• Eighth-grade ELA: top 7% statewide for meeting/exceeding; 17th highest student growth
• Eighth-grade math: top 10% meeting/exceeding; 10th highest student growth
• Special ed subgroup eighth-grade ELA growth: ranked #1 in the state
• Seventh-grade math student growth moved from 153rd (2019) to 17th statewide

Marblehead High School (Principal Michelle Carlson):

• ELA: 78% meeting/exceeding (top 16% of high schools); Math: 76% (top 11%); Science: 73%
• Math exceeding expectations grew by 7%; student growth percentile up 4.2%
• Flagged by DESE for low MCAS participation in Hispanic/Latino subgroup
• Implementing tier-one school avoidance/absenteeism needs assessment with social workers
• Magic block: teachers can lock students into targeted sessions; four years of implementation

District-wide results (spring 2024):

• ELA: 60% meeting/exceeding (18 percentage points above state average)
• Math: 63% meeting/exceeding (21 percentage points above state average)
• Science: 18 percentage points above state average

Trends: Scores mirrored a statewide dip in 2024 after a 2023 peak. The average scale score declined by only one point. The percentage of students “not meeting” expectations rose to 8%, a 33% relative increase.

Accountability: All schools except Marblehead High School are rated as making substantial progress or meeting targets. MHS is flagged for “requiring assistance or intervention” solely due to low MCAS participation among Hispanic/Latino 10th graders (a very small cohort). Glover School is rated at “moderate progress.”

Chronic absenteeism: Non-high school buildings exceeded their reduction targets; the high school chronic absenteeism rate increased, which weighs heavily in DESE’s new accountability rubric.

MCAS graduation requirement: MCAS will no longer be a graduation requirement; the district must develop a local competency determination process. Work has begun among administration; a formal proposal will come to the committee in early 2025.

Committee requests: Members requested a future focused presentation disaggregating high-needs subgroup data (low-income, ELL, students with disabilities) by school and subject, coordinated with the pending special education program review.

Committee members agreed to move agenda items D, E, and F — all related to the school calendar and makeup days — ahead of the MCAS and financial updates, in consideration of public attendees who were present specifically for that discussion.

Finance Director Alicia Benjamin, Finance Committee Chair Alec Goolsby, and Vice Chair Molly Teets presented a preliminary three-year financial forecast for FY2026–2028.

Key cost drivers (77–78% of budget):

Revenue profile: Property taxes fund 80% of the general fund (72% levy + 8% debt exclusion). State aid is approximately 8%; local receipts 7%; free cash 5%.

Projected gap: Approximately $1.9 million in FY26, growing substantially in FY27 and FY28 primarily due to the trash contract renewal (current contractor is losing approximately $300,000/year), school salary contracts with back-loaded provisions, and out-of-district special education tuition (estimated jump from $3.7M to $4.4M in FY26).

Free cash: Certified at $8.7M for FY25; $5.5M used in budget, $1M for capital, $2.2M unappropriated. A ~$2M windfall from interest income in FY24 may push next certification higher. DOR guidelines recommend 8–10% of budget in combined reserves; stabilization fund currently holds only $500,000 (0.5% of budget), ranking near the bottom statewide.

Debt service: Current debt service is declining as high school debt rolls off (~$1.875M). Even if all authorized borrowings are issued plus the proposed $7.4M school roof/HVAC project, total debt service would remain below current levels through the forecast period.

Trash contract: Public Health Director Andrew Petty reported the current 10-year contract at approximately $127/household/year expires now; comparable communities suggest the next contract will be approximately $203/household, with recycling disposal costs rising from near-zero to $109–$119/ton (approximately 3,000 tons/year).

Board members discussed the need for a headcount and productivity analysis across departments, accelerating stabilization fund contributions, and the possibility of retaining an independent Massachusetts municipal finance consultant (already engaged by the finance director) to model override and non-override scenarios before town meeting.

Superintendent reported that DESE requires all 10 strike-related missed days to be made up as full in-person school days before June 30; the commissioner’s office confirmed no waivers would be granted and virtual days or extended instructional minutes cannot substitute for full calendar days.

Proposal A: Dec 23 + Feb 18–21 + Apr 22–25 (preserving end-of-year dates; protects graduation June 6). Proposal B: Dec 23 + Feb 18–21 + five days added at year’s end (June 23–27); risk that any snow days would then fall back into April vacation.

The committee voted 5–0 to approve Dec 23 and Feb 18–21 as school days immediately. The remaining five days were deferred pending a parent/staff survey (to be drafted by Allison Taylor and the superintendent, distributed by the following Tuesday, results presented at the Dec 19 meeting). Attendance policies are expected to be suspended for students during these makeup periods so families with pre-existing travel plans are not penalized. Saturday makeup was discussed but set aside given religious observance concerns and athletics scheduling conflicts.

Following a goals subcommittee process with members Brian Oda and Allison Taylor, the superintendent presented three administrative evaluation goals:

Goal 1 – Professional Practice: District-wide culture and staffing patterns

• Conduct a teacher-by-teacher, classroom-by-classroom staffing analysis including step placement and student counts to inform programming decisions.
• Survey parents, staff, students, and community partners in fall, winter, and spring.
• Special emphasis on special-education programming and caseload equity; new assistant superintendent for special education (Lisa Marie) already working to restructure BCBA coverage (from one district-wide to one per building).
• Measurability concern raised: committee asked for clear benchmarks and periodic check-ins rather than end-of-year reporting.

Goal 2 – District Improvement: 2025–2028 District Improvement Plan (also referred to as Strategic Plan)

• Massachusetts requires a district improvement plan in three-year increments; current “Plan for Success” runs through 2026 and will be revised.
• Process: superintendent will use existing plan as a framework, work with administrative team to identify what remains relevant, distribute electronically to principals, then all staff, then parents/caregivers/students for input, then bring to school committee for approval.
• Target timeline: complete by mid-April 2025 so it can inform the budget hearing and town meeting season.
• Each school improvement plan will align to the district improvement plan going forward.

Goal 3 – Student Learning: Student voice in teaching and learning

• Work with principals to establish grade-appropriate vehicles for student feedback (K–3, 4–6, 7–8, 9–12).
• Brown School principal has already established a student leadership team.
• Superintendent plans to meet directly with student groups across the district.

Vote: Approved 5–0.

Assistant Superintendent of Student Services Lisa Marie Elito and Assistant Director Victoria Ryan presented the district’s corrective action plan (CAP) following a tiered focused monitoring (TFM) review by DESE. Marblehead fully implemented 28 of 34 standards and partially implemented 6; none were rated ‘not implemented.’

Areas of strength identified:

• Transition services starting at age 14
• Least restrictive environment
• Parental consent processes
• Team composition and attendance
• Progress notes and multilingual communication
• Assistive technology supports

Six partially implemented standards:

Corrective actions underway:

• Master tracker built for each building tracking every IEP timeline
• Weekly Friday training sessions (8–10:30 AM) for team chairs
• Twice-weekly after-school special ed meetings building-by-building
• Google Form for staff to log missed services, auto-populating a shared spreadsheet
• End-of-meeting summary document provided to parents at every team meeting
• Post-meeting parent feedback link sent after every team meeting
• Letters issued to parents when compensatory services are owed
• DESE liaison extended the October 18 corrective action deadline to November

The committee was informed the previously commissioned independent audit by Academic Discoveries has been restructured: instead of reviewing outdated documents, it will evaluate the new systems. Interviews with staff are underway; focus groups and surveys are planned. The final report is now expected in February rather than December.

Finance Committee Chair Alec Goki presented a long-term financial forecasting initiative to the Select Board.

Budget Baseline

• Town-wide budget voted at Town Meeting: approximately $115 million
• Excluding enterprise funds and previously approved debt-exclusion debt service: approximately $91.5 million adjusted budget
• Of that, 83% is salaries/wages, insurance/benefits, and pension
• Schools represent 67.5% of the salary/wages category; fire and police together bring the top-three combined share to 85%

Forecasting Plan Goki described a phased process:

1. Salary & wages — FinCom liaisons assist department heads in populating a roster-level template (name, position, hours, grade, step, step date, health plan enrollment) anchored to the FY25 approved budget
2. Insurance & benefits — Alicia (Finance Director) to prepare a 3–4 slide projection with trend data
3. Pension — primarily actuarial; retirement board and Finance Director lead
4. Utilities and other expenses — including waste/trash contract as a volatile line
5. Debt service — interaction of new debt coming on and existing debt rolling off to illustrate tax-bill impact and potential override scenarios

Key challenges noted:

• Union contracts on the town side require Town Meeting ratification and have not yet been settled
• School contract negotiations also ongoing; school committee can ratify independently
• Complex stipend calculations in public-safety contracts (e.g., rates tied to specific grade/step multiplied by hours worked) make projection difficult
• ClearGov is being used but has not yet been fully built out with personnel tables for automated scenario modeling

Goki indicated the FY26 budget submission deadline to Finance Director Alicia went out before end of June — roughly three months earlier than prior years. A “level services vs. available revenues” comparison will be produced as in the prior two years. The long-term forecast is intended to determine whether an override is necessary, with Goki noting many Massachusetts towns have gone for overrides in recent years.

Interim Finance Director Delay reported an unencumbered FY24 balance of approximately $988,000 as of the meeting date, with two payrolls and three accounts payable warrants yet to be processed. She indicated the district had also pre-paid $900,000 in special education tuition and pre-purchased $300,000 in technology. The final surplus is expected to be less than 1% of the total budget. Any remaining balance reverts to the town as free cash without a committee vote.

The focused program review conducted in January found 28 of 34 standards fully meeting all required elements, with 6 partially met and no violations. Areas of partial compliance included: SLD determination documentation inconsistency, age-18 rights notice (SE7), re-evaluation timelines (SE12), annual review timelines (SE14), IEP distribution timing (SE18B), and service delivery delays without written parent notice. The interim director noted significant difficulty filling special education positions for the coming year and recommended increasing summer teaching staff pay above $33/hour to remain competitive. No vote was required on this item.

On the recommendation of interim Superintendent McGinnis and interim Finance Director Delay, the committee voted 4–0 to approve individual contract salary adjustments totaling $127,804, an increase of $8,162 over the amount approved at the May 16 meeting.

Gina Hart presented results from the October 2023 Marblehead Youth High School Survey, administered to all students grades 9–12. Key findings included:

Response rates:

• 743 students responded to the MGH survey (85% response rate, up from 75% the prior year)
• 677 responses to the supplemental Marblehead Youth Risk Behavior Survey

Mental health data (above risk threshold):

• Anxiety: ~25%
• Depression: ~15% (decreased)
• Psychotic experiences: ~11%
• Suicidal thoughts: ~16% (decreased)
• Suicide attempt: 3% (increased from ~1%)
• Non-suicidal self-injury: ~11% (unchanged)
• 47.8% of 12th graders above the anxiety/depression risk threshold

Substance use (lifetime):

• Alcohol (ever tried a sip): ~40%
• Cannabis/THC: ~20%
• Nicotine (vaping, cigarettes, etc.): increased slightly

Past-30-day use:

• Alcohol: 6.6%
• Marijuana: 4.5%
• Nicotine vape products (daily): 5.1%

Other notable findings:

• 68.2% of nicotine vape users plan to quit within a month
• ~35% of past-30-day nicotine users report cravings within the first hour of waking (addiction indicator)
• Students overestimate peers’ substance use, a risk factor per social norms theory

Programs discussed:

• A diversion program (“I Decide” through MGH) for students caught vaping, serving ~10 students/year
• Narcan available in all district schools
• New health educator to be added at Village School (grades 4–6) for FY next year
• Stanford-partnered “Vape Free” curriculum piloted at the middle school
• High school piloted reduced phone access during academic time
• The NAN Project (free storytelling/mental health programming in ~75 schools) discussed as a potential future resource

Board members discussed refining survey questions on impaired driving, adding questions about phone/social media use, and potential collaboration between the Board of Health and the school system on community programming.

The committee approved Option 2 from a user fee analysis prepared by district finance staff for the 2024–25 school year, voting 5–0. Members acknowledged the decision was not taken lightly and described the fee structure as a tool to keep extracurricular and activity programs self-funded and to preserve educator positions. The chair reminded families that principals, athletic directors, and coaches can assist students for whom fees pose a barrier to participation.

The joint Finance Committee and School Committee session focused on how the FY25 school budget gap was closed after earlier presentations had shown a roughly $2.3 million shortfall.

Key financial moves:

The revolving-fund change involved fully allocating staff costs to the tuition-funded pre-K and kindergarten programs rather than the general fund — a practice described as consistent with other Massachusetts districts. The circuit breaker reserve was left fully intact.

With the restoration, planned reductions fell from 36 positions to approximately 3.7 FTE (5 positions) resulting in layoffs.

A financial advisor (Mary) noted that a 1% end-of-year surplus is typical for school budgets of this size; the current FY24 projection is approximately 2%, providing confidence that the $600,000 draw is reasonable. The School Committee voted to require financial-implication decisions to come before it for the remainder of the term to safeguard the projected surplus.

Discussion also covered:

• Paid kindergarten and equity concerns; Marblehead is one of only two Commonwealth towns still charging tuition for part of the school day
• Possibility of mandatory pre-K at the state/federal level within a few years
• Improving budget transparency through ClearGov integration and showing gross costs with offsets
• If local-receipts town meeting articles fail, the school budget may need to be amended downward by approximately $200,000

Vote: Finance Committee unanimously recommended the school FY25 budget at $46,759,110.

The Finance Committee chair delivered a detailed written statement on the FY25 budget before the vote:

Revenue highlights:

• Total new revenues above prior year: $1.5 million (1.5% increase)
• Tax levy increase: ~$1.8 million (full 2.5% Prop 2½ allowance)
• New growth estimate: ~$300,000 (conservative, in line with 3-year average)
• Free cash used to balance: $5.5 million (down from $8 million the prior year)
• New local receipts (Articles 24 & 25 if passed): $400,000 conservatively
• State aid increase: ~$500,000

Expense cost drivers:

• Wages: +3–4% overall (2% COLA plus steps/lanes)
• Health insurance: +8–10%
• Utilities: +5–10%
• Trash collection: +~20%

Budget totals:

School budget increase: ~2%; Town budget increase: ~1%.

The chair noted that the town is using 50/50 split methodology between town and school departments and warned that absent a longer-term plan, service cuts in future years are inevitable. He identified four paths to address the structural deficit: increase non-override revenues (meals/rooms tax, fees, new growth), use free cash/reserves, cut costs, or pursue a Prop 2½ override. The two prior overrides (FY22 and FY23 warrants) failed. He commended adoption of ClearGov financial reporting software as a significant improvement. Recommended unanimously.

Article 18 (transfer funds to special education stabilization) was not requested this year. The FinCom chair noted the fund was created approximately seven years ago at $250,000 and has never been drawn upon. The committee discussed Circuit Breaker reimbursements from the state and the volatility of special education costs. FinCom voted unanimously to recommend indefinite postponement.

Mark Stroud (40 Maple Street, Essex Tech School Committee Chair) presented Article 17. Key figures:

• FY24 assessment: $468,762
• FY25 assessment: $468,057 (essentially flat)
• FY24 per-pupil cost: $17,983
• FY25 per-pupil cost: $18,722 (4.11% increase)
• Marblehead enrollment: 25 students, representing a 1.783% participation factor
• District enrollment: 1,746 students, projected to grow to 1,774
• Essex Tech is the second most affordable of 28 vocational-technical schools in Massachusetts
• District received over $5 million in competitive grants this year, including an $850,000 federal grant

FinCom recommended the $468,057 appropriation unanimously.

The Select Board opened the Finance Committee warrant hearing by taking a vote on reducing the Other Post-Employment Benefits (OPEB) line item by $250,000 to make funds available for the school budget. The CFO explained the reduction would not have a material impact on the OPEB liability in the short term.

One board member expressed concern about public safety staffing vacancies and said they could only support $150,000 going to the schools, with $100,000 kept for public safety needs. Another member noted that a consistent 50/50 split between town and school budgets had been an agreed-upon principle and expressed discomfort with the schools drawing from the town side. A third member acknowledged the hard work of the finance liaisons (identified as Molly and Alec) and deferred to professional staff guidance.

The vote was 4 to 1 in favor of the full $250,000 transfer. The board noted that anticipated year-end turnbacks from the schools would exceed this amount, and that free cash levels would be maintained to protect the town’s AAA bond rating.

Following the public forum, the committee convened its business session to deliberate on FY25 budget next steps. Fox summarized the two budgets produced: a level-services budget (approximately 5.7% increase over current year) and a reduced-services budget aligned to the town’s revenue projections.

Revolving fund analysis: Fox and Interim Superintendent Theresa McGinnis described efforts underway to identify savings within revolving funds:

• Kindergarten and pre-K revolving accounts: Finance Director Mary Deley believes not all allowable costs are currently charged to these funds; correction could free operating budget dollars.
• Food service revolving fund: A large balance has accumulated due to federal reimbursement for all student meals. The food service director’s salary (the department’s largest) is planned to shift into the revolving fund for FY25, and possibly FY24, freeing that salary line.
• Building rental revolving fund: Deley is exploring whether utility costs for rental periods could be charged to a town utility reserve.
• Circuit breaker (special education reimbursement): McGinnis suggested moving from carrying 100% of the prior year’s reimbursement in reserve to 75% for one year to ease budget pressure. Fox expressed reluctance given recent SPED turmoil and the risk of departing from best practice. A special education stabilization fund of $250,000 funded in 2019 has not been used.

Health insurance: Fox noted that the town re-allocated $1.3 million in over-budgeted health insurance to town salary lines. She requested that approximately half ($650,000) be allocated to the school budget given schools represent over 50% of town employees; she said the response from the town side has not yet been promising.

One-time funds concern: Fox cautioned against using one-time revenue sources for recurring costs, a practice she said the town side is pursuing to bridge one more year.

Budget direction vote (informal): The moderator asked whether any committee member supported the reduced-services budget as presented. No member indicated support. Fox stated emphatically she would not vote a budget with further cuts to staff. The committee unanimously indicated the reduced-services budget is off the table.

Next steps: McGinnis said she and the principals have been prioritizing the list of proposed cuts across three scenarios (current year’s proposed cuts, last year’s 33 cuts, and an earlier aspirational list) so the committee can identify what to restore at various funding levels. She committed to providing this list before Monday’s meeting. The committee will meet Monday at 7:00 PM (location to be confirmed) to review the prioritized list and determine whether to proceed with level services, a hybrid, or a number requiring an override.

Fox: ‘I emphatically am telling you, I am not approving something that has further cuts to our staffs and our students. I’m just not.’

The meeting adjourned at approximately 9:20 PM.

Members noted that the phrase ‘fully funded’ carries different meanings to different community members—ranging from no further cuts, to restoring previous service levels, to aspirational investment. Without a clear definition, the committee has not produced a third ‘fully funded’ budget.

At the direction of the town’s finance director, the committee prepared two budgets: a level-services budget (same services as the current year, approximately 5.7% increase) and a reduced-services budget (cuts to come in at projected revenue). The finance committee and finance director set the revenue projection framework.

One member argued that a fully aspirational budget would require a completed strategic plan and a sustainable long-term funding source, which does not yet exist. The committee noted the FY25 budget deliberation was scheduled as a business item immediately after the forum.

Asked about target class sizes, members noted elementary schools aim for 20 or fewer students. Glover School averages 15–16, Brown and Village schools around 20–21. High school core-subject classes average 17–18 students.

The committee emphasized that class size alone does not capture budget pressure: post-COVID increases in social-emotional and academic complexity among both general and special education students have expanded service needs regardless of headcount. Enrollment has declined consistently for seven to eight years, a trend common among similarly sized Massachusetts communities.

Superintendent McGinnis presented the FY25 preliminary reduced-services budget, developed in response to a town appropriation yielding only approximately $755,000 in new revenue — far below the $2.5 million needed for level services.

Key budget figures: | Item | Amount | |—|—| | Level services budget | ~$47M (5.77% increase) | | Reduced services budget | ~$45M (1.68% increase) | | Deficit gap | ~$2.3–2.5M | | Out-of-district tuition (FY25 projected) | $4.4M (18.5% increase) | | Out-of-district students (FY25) | 46 (up from 42) |

Proposed cuts include:

• 36 positions / 28 FTEs eliminated
• 4 classroom teachers, 4 special educators, 2 adjustment counselors, 1 EL teacher, 2 reading teachers, 1 BCBA, 5 general ed support staff, 1 assistant principal (Vet School), 5 clerical/administrative positions, 4 lunch paras, 3 special ed paras/tutors, 2 facility staff, 1 driver, 1 assistant director of student services
• Consolidation of therapeutic program from Glover and Brown schools to Brown only
• Transfer of coaching and extracurricular stipends to participant user fees
• Elimination of elementary teacher leaders
• Significant reductions in professional development and instructional supplies

Athletic user fees — two revised options were presented:

• Option 1 (annual fee): $990 high school, $440 middle school, $290 per-student activity fee; family cap $1,800
• Option 2 (per-season fee): $540 first season, $490 second, $440 third; family cap $2,060

Interim Director of Student Services Patricia Bell also presented a staffing accountability report showing current IEP service demands versus available FTEs, noting data is fluid and that service delivery models (1:1, small group, push-in) complicate direct FTE comparisons.

Acting Director of Finance Mary Dely noted that among 13 Essex County comparable districts, Marblehead’s per-pupil spending is among the highest while its student-to-staff ratio (10.3) is among the lowest, suggesting a trade-off between staffing levels and teacher compensation.

Dr. McGinnis reported that interim Director of Student Services Ashley Bell began full-time approximately 10 days earlier and discovered data inaccuracies in the Aspen system when pulling the staffing accountability report. Corrections require direct input from special educators and team chairs; the report is now expected by end of the following week.

Veterans Middle School principal Matt walked the committee through a multi-step staffing process:

1. Communication with sending school (Village) on incoming student needs
2. Program-level staffing (inclusion: two case managers per grade level)
3. Support personnel (tutors, counselors, psychologists)
4. Specialized services (OT, PT, SLP—shared with high school)

He noted 706 current individual athletes and that the process of converting individual IEP service minutes into spreadsheet form is new and time-intensive, requiring staff who personally know students to validate data.

Committee members reiterated that the data is needed to make the case to the public and the Finance Commission for adequate funding—not to audit administration. One member noted the district has lost approximately 33 positions in the prior year on top of the projected ~35 positions in the current $2.3 million reduction scenario. The permanent sub team (Tracy Meg and Phil Witt) was recognized for keeping the middle school library accessible on a small stipend after the librarian position was eliminated.

Athletic Director Greg and Assistant Business Manager Emma Plessi presented a comparative analysis of athletic fee structures alongside peer districts in the Cape Ann and Northeastern conferences.

Current structure: High school unlimited fee $495 (covers 1–3 seasons); family cap $800.

Three proposed options (all generating roughly equivalent revenue):

Comparison context: Current family cap of $800 is among the lowest in the area; Swampscott and Triton are near $1,800.

Committee members raised concerns:

• Option 3 family cap would be roughly 101% higher than Swampscott and a 371% increase for families.
• Approximately 706 individual athletes currently enrolled (will grow to ~800 with spring registrations).
• There are approximately $102,000 in additional extracurricular advisor stipends not included in the $170,000 athletic gap figure.
• Members asked for a deeper offline analysis with Emma and Mary Delly before the budget public hearing on March 21.
• Equity concerns were raised: high fees could deter participation and create access barriers.
• If insufficient students enroll in a given sport under Option 3, the program may not be fielded.

No vote was taken. The matter will be further discussed at the March 21 public budget hearing at the PAC at Veterans Middle School, 7:00 PM.

Carrie Power (online) asked each committee member about their understanding of special education law (IDEA, FAPE) and the budget implications of potential cuts. Key points from committee responses:

• Members acknowledged special education is a legally mandated obligation that cannot be reduced to meet budget targets the way discretionary programs can.
• The committee had previously requested an RFP for an outside audit of the special education department’s processes and policies; members noted they had not yet received a response or updated information on that audit.
• Brian, a former principal and special education teacher, stated that building-level staff are well-versed in IEP administration and that the issues stemmed from the top of the pupil-services department.
• Members emphasized that out-of-district placements represent a significant cost driver and that those students remain part of the Marblehead district.

Committee members described the prior evening’s three-and-a-half-hour budget presentation by the administration. Two budgets were prepared at the request of the Finance Commission:

The budget hearing for community input was scheduled for March 21st. Members encouraged residents to review the detailed budget materials posted online.

The joint session interviewed five candidates alphabetically: Alexa Abowitz, Louisa Zini, Sarah Magazine, Tom Mathers, and Mel Williams (two applicants withdrew before the meeting). Each was asked nine identical questions covering preconceived notions about the committee, day-one priorities, handling differences of opinion, the projected budget deficit (described variously as $2.2M–$2.5M), long-term commitment to run in June, collaboration, the budget reduction, transparency and trust-rebuilding, and collective bargaining.

Key themes from candidates:

• Alexa Abowitz (attorney/general counsel): emphasized communication and crisis-management skills, cited collective bargaining experience representing a school district, acknowledged the $2.3M cut as ‘ugly’ but unavoidable without revenue.
• Louisa Zini (enrichment educator, PTO background): noted she had called the Ethics Commission regarding a potential conflict with her part-time work for SPUR; expressed strong interest in running in June.
• Sarah Magazine (PTO president, Glover School): framed challenges as primarily a communications and reputation-management problem; worried most about retaining the teacher corps; declined to commit to running in June.
• Tom Mathers (prior six-month school committee term): said an override is ‘not in the cards’ given the town hasn’t passed one in 19 years; focused on collective bargaining as the central financial issue; explicitly said he would not seek election in June.
• Mel Williams (Commonwealth IT executive, retiring in five weeks): committed to seeking election; cited finance committee experience in Bedford, teaching background, and experience working with union members in state government.

Round 1 vote results:

• Mel Williams: 4 votes (Murray, Singer, Newton, Schaffner)
• Tom Mathers: 3 votes (Taylor, Grader, Nye)
• Sarah Magazine: 2 votes (Oda, Fox)
• Alexa Abowitz, Louisa Zini, Brenton Speed: 0 votes each

After dropping the zero-vote candidates, Round 2 narrowed to Williams, Mathers, and Magazine:

• Mel Williams: 6 votes (Oda, Schaffner, Fox, Murray, Singer, Newton)
• Tom Mathers: 3 votes (Taylor, Grader, Nye)
• Sarah Magazine: 0 votes

Williams was declared appointed with six votes, exceeding the required majority of five.

Director of Finance Michelle Cresta presented a three-budget framework for FY25:

The level-services budget increase of approximately $3.1M over current funding is driven by:

• Wages (steps + COLA): ~$1,000,000
• Tuition increases (OSD rate 4.69% for FY25): ~$536,000
• Transportation: ~$424,000
• Utilities: ~$487,000
• IT hardware replacement cycle: ~$420,000
• Other (legal, copiers, contracts): ~$191,000

New town revenue for FY26 is estimated at $1.2–$1.5M total, with roughly half (~$700,000) allocated to schools, bringing the reduced-services budget to approximately $45,537,000. The district cut 33 positions totaling $1.5M last year; the current target of $2.3M is described as significantly larger. Staff represents 84% of the budget.

Next steps include leadership team budget collaboration February 5, 8, and 13; school committee budget workshops February 15 and 26; and a public finance forum tentatively set for February 27 co-hosted by Director of Finance Cresta and Town Finance Director Alicia Benjamin.

The committee discussed a draft RFP for a student services audit. Members proposed additions to the scope including:

• De-escalation and restraint protocol adequacy and staff training
• Therapeutic and substantially separate program staffing and adequacy
• Parent/guardian experience in the evaluation and IEP process
• Analysis of trends in out-of-district placements with recommendations for in-district alternatives
• Review of special education chair caseloads and working conditions
• Centralization analysis for elementary special education services

The committee debated RFP versus bid process and favored an RFP to allow qualifications-based review. Members requested that the specifications prohibit bidders with staff who have current or recent (proposed 3–5 year) ties to Marblehead Public Schools. CFO Cresta noted that posting the RFP by approximately January 29th would allow the fastest timeline; each week of delay pushes the process by a week due to posting requirements.

CFO Michelle Cresta presented a high-level FY25 budget overview covering three scenarios:

Key budget drivers cited:

• Staffing COLA (2%) and step increases: ~$1.2 million
• Out-of-district special education tuition increase (OSD rate): 4.69%, projected at ~$700,000 (compounded on top of 14% increase the prior year); includes four placeholder placements
• Utility costs: ~$150,000 increase, with electricity up ~$80,000
• Out-of-district transportation: not yet projected

Cresta noted that 84% of the school budget is salaries and wages. She warned that cutting $2.2 million would require more than the 33 positions eliminated the prior year, which produced only $1.5 million in savings. Budget books were expected to be distributed the following week. The committee was encouraged to attend the State of the Town address the following Wednesday for fiscal projections across all town departments.

A committee member noted that per law the school department must present a balanced budget not exceeding what the town can appropriate, and that any increase proposed at town meeting would require an offsetting decrease elsewhere.

A committee member pressed for movement on a special education audit RFP, noting the request had been outstanding and that the departures of Dr. Donnelly and Ms. Dean from student services made the audit more urgent, not less.

Michelle Cresta noted that draft specifications had been prepared by Dr. Donnelly prior to her departure, and she needs to review those with Dr. McGinnis before sharing with the committee. The committee indicated that the scope could range from special education services only to broader tier-one services. The committee was told to expect the draft scope within approximately two weeks, by the next committee meeting.

Assistant Superintendent Cresta reported on a three-hour working budget session held earlier in the week with principals, the interim superintendent, and business office staff. Topics included additional staffing requests following recent personnel changes, enrollment projections, staffing assignments, and available one-time funding sources including remaining ESSER funds.

The committee agreed to push back the budget book release from January 12th by several days, and further agreed to align delivery of the budget with a staffing accountability study. The committee indicated the January 22nd–23rd budget workshop would likely shift to around January 29th–30th to allow both documents to be ready simultaneously.

The state of the town address is scheduled approximately three weeks out, and the committee noted information from that event could be relevant to budget discussions.

Assistant Superintendent Michelle Cresta explained:

• The district is preparing both a level-services budget (current services at today’s dollars with inflation) and a level-funded budget (flat dollars rolled forward, meaning cuts). Both will be in budget books delivered January 12th.
• A Labor Accountability Project will produce service grids showing required IEP service hours versus current staffing, which the committee chair said would be used to ensure the district is properly staffing mandated services.
• The chair (identified from context as Sarah Fox) stated she would advocate at town meeting for any additions needed to meet IEP obligations, even if aspirational spending is not possible.
• A drafted RFP for a special education audit was described as near-ready; the committee asked for it to be sent before the January 4th meeting so it could be refined and approved.

CFO Michelle (last name not clearly identified in transcript) reported that the FY2025 budget process has begun. Principal budget workbooks were distributed November 21 and are due back December 18. The full budget books are planned for distribution to the School Committee and town officials on January 12.

Two budget scenarios are being prepared:

A labor accountability project reviewing staffing and enrollment levels is also underway. The team is developing methodology for a no-override budget in the event a Prop 2½ override does not pass.

Veterans Middle School – Matt Fox, Principal

Goal 1 – Teaching & Learning: MVMS departments will implement PLCs and vertical alignment meetings with Village Elementary and MHS, aligning state standards, teaching practices, and assessments. Initial meeting held October 25 on a half-day; subsequent meetings scheduled within the 3–4 p.m. Wednesday PD window.

Goal 2 – Student Engagement: Continuation of advisory program development, including a monthly SEL curriculum committee and a student engagement calendar building on the existing year-end spirit competition.

Goal 3 – Professional Culture: Peer observation program building on 12 teacher-led tier-one practice workshops from FY23. Teachers will observe colleagues outside their co-planning teams, complete a reflective document, and share learning. Rollout begins November with observations targeting February–April.

Goal 4 – DEI: Analysis of student belonging survey data collected by the DEI committee at year-end; findings to inform advisory and tier-one instruction work.

Marblehead High School – Michelle Carlson, Principal

Goal 1 – Curriculum Alignment: MHS departments will update scope and sequence fully aligned with VMS; MCAS item analysis already underway in English, math, and science PLCs.

Goal 2 – Professional Development: Smart panel technology training planned for December PD day; faculty survey on PD needs to be distributed; teachers attending external conferences will present learning back to staff.

Goal 3 – DEI/Culturally Responsive Practice: Monthly DEI PLC developing a student survey (by January); World of Difference/ADL training for Team Harmony (now renamed A World of Difference); women-in-leadership training for female athletes to be expanded to other students; follow-up survey to staff in May.

The committee discussed AI-assisted writing feedback being piloted in social studies, AI grading comparison checks by teachers, and student-led conferences as a future initiative. The committee voted 5–0 to approve both plans and requested mid-year status updates around February.

Acting Superintendent Michelle Cresta presented FY23 and FY24 financial reports.

FY23 Closeout

• Initial budget: approximately $43,982,000
• Total spending: approximately $42,676,000
• Carryover encumbrances: $1.3 million
• One-time expenditures from vacancy savings: $615,851 (maintenance equipment, paging systems, security cameras, door swipe access, intercom systems, furniture)
• Prepaid out-of-district tuitions: $539,000
• Circuit-breaker revolving fund reached maximum allowable carryover for the first time in approximately four years

FY24 First Quarter

• 11.2% of operating budget spent as of Q1 (10.9% at same point in FY23)
• Staffing vacancies remain but are less severe than the prior year
• Out-of-district transportation and tuition costs tracking on budget
• Custodial cleaning service contract discontinued due to budget cuts; new on-call substitute custodian positions recently posted
• Safe Routes to School signs-and-lines grant awarded: $8,899 (applied by Police Chief Dennis King)

A committee member noted that contracted custodial services cost approximately three to four times the rate of an employed custodian, limiting the district’s ability to fill gaps.

Acting Superintendent Cresta summarized the town’s preliminary FY25 revenue forecast, describing the projected increase as slight and insufficient to cover fixed or roll-forward costs. The town has requested the district submit two budgets: a level-services budget and a level-funding budget (holding spending flat at the prior year’s number).

Cresta noted she met with the town’s finance director Alicia that day for clarification and that all department heads would receive further guidance at a Tuesday meeting. The finance subcommittee is scheduled to meet Wednesday, October 25 at 3:00 PM. Members were directed to set up ClearGov accounts to participate in the budget process, with a caution that comments in the shared document could constitute deliberations under open meeting law.

Julia Ferrera presented the district’s 2023 MCAS results, noting overall math proficiency grew to 64% versus a state average of 42%, and ELA showed 7% growth from 2022. The high school posted 81% proficiency in science.

However, committee members raised concerns that grades 4 and 5 remain significantly below 2019 pre-COVID benchmarks:

Committee members noted that students currently in grades 4-5 were in kindergarten and first grade during remote learning, representing the cohort most affected by COVID learning loss. The assistant superintendent cited multi-tiered systems of support (MTSS), professional learning communities, i-Ready assessments, Illustrative Mathematics, and Wit & Wisdom ELA curriculum as the frameworks in place to address gaps.

A committee member raised questions about students who do not pass MCAS, and it was confirmed that retakes, appeals, portfolios, and alternative pathways are available for graduation requirements in ELA, math, and science.

The committee also discussed the persistent gap between overall proficiency and the ‘high needs’ subgroup (students with disabilities, English language learners, and low-income students), and requested future data breakdowns by subgroup. One member suggested the remaining ARPA funds (approximately $700,000) could be directed toward one-time interventions targeting COVID learning loss.

A finance subcommittee update noted two FY23 closeout highlights: significant savings in unemployment due to employees finding other jobs after positions were flagged for potential elimination, and achievement of the maximum circuit breaker rollover for out-of-district placements—described as best practice for special education cost management. The committee also noted that FY25 budget planning is beginning and that a meeting with the Select Board chair, town finance director, and town administrator is scheduled for the following day to align on revenue projection timelines. Absent new revenue data, another structural deficit is anticipated for FY25.

Committee member Allison Taylor reported ongoing efforts to clarify the town’s allocation of ARPA funds to the schools. She noted that a reported $1.2 million figure is disputed, pointing to approximately $200,000 attributed to a capital projects budget error from town meeting and approximately $200,000 for the schools’ 60% share of a new payroll system. She questioned whether funds used to remedy a town capital budget mistake should count as money ‘given’ to schools. Taylor and Acting Superintendent Cresta plan to meet with town officials the following week, with a goal of sharing detailed information publicly afterward.

The committee waived its three-reading policy adoption process for two policies at the request of Acting Superintendent Cresta:

1. Wellness Policy ADF — Updated to meet state requirements from DESE’s Office of School Nutrition, including provisions for a minimum 15 minutes of daily elementary recess, wellness committee meeting frequency, and annual reporting. Adopted 5–0. The wellness committee will review operationalization of specific provisions and report back to the committee.

2. Life-Threatening Allergy Policy JLCDD — A new policy acknowledging life-threatening allergies in schools, requiring staff education and individual student plans. Referenced within the wellness policy, making adoption of both simultaneous. Adopted 5–0.

Cresta explained that the food service director had recently alerted the administration that both policies needed to be in place before the start of school for the district’s school lunch application to be approved by the state. A committee member emphasized that the waiver request originated from the administration, not the committee.

Superintendent Michelle Cresta provided district updates covering several areas:

State Budget / Free Lunch: Massachusetts approved universal free school breakfast and lunch for all K–12 students. Cresta clarified this is funded by state and federal taxes, not free to taxpayers, and that meals must be complete meals per state guidelines. The Chapter 70 increase does not directly change the district’s FY24 appropriation, which was set at town meeting.

Enrollment: Village Middle School enrollment grew by 54 students overall (from 395 to 449), with seventh grade at 238 versus a projection of 221 — the third-highest single-grade increase in 15 years. Thirty of those students are new to the district. Class sizes in seventh grade world language classes will be at or near 25. Cresta noted charter school enrollment changes appear to be contributing to the increase.

FY23 Closeout (preliminary figures): | Item | Amount | |—|—| | Total operating budget | $43,982,273 | | Total expenditures through June 30 | $42,676,176 | | Encumbrances | $1,306,095 | | Turnback to general fund | $2 | | Out-of-district tuition prepaid | $539,497 |

A formal closeout report is expected within a month.

FY24 Superintendent Separation Funding: The district identified approximately $150,000–$200,000 in savings from the unemployment line (fewer layoffs than budgeted) and an estimated $100,000–$150,000 from lower-than-anticipated starting salaries for new hires, for a combined estimated absorption of $250,000–$350,000 to cover the separation agreement costs.

The committee had an extended discussion on whether to amend the wellness policy to require a second daily recess for elementary (and potentially K–6) students. Key points:

Current practice:

• A roughly 20-minute midday break exists in the schedule.
• A morning snack/break period also exists, but whether students go outside varies by teacher; some classes were not permitted to leave the classroom.
• The removal of a second recess was attributed to “time on learning” concerns.

Committee position:

• Both members expressed strong support for reinstating a second recess, at minimum for K–3 and potentially K–6.
• Member Alison noted she had contacted DESE and MASC and found no statute explicitly classifying transitions and line-walking as non-instructional time.
• Multiple peer districts were cited with stronger recess or physical activity minimums (e.g., Lexington mandates two recess breaks; Norwood and others adopt 300 minutes/week per Shape America guidance; Wellesley recommends recess before lunch).
• Many districts reviewed include a clause prohibiting withholding of recess as punishment.

Administration caution:

• Michelle (assistant superintendent) and Julia (new assistant superintendent for teaching and learning) noted that school schedules have already been distributed, teachers return in approximately 2.5 weeks, and any change involves union negotiations and principal scheduling.
• Julia offered to convene a collaborative meeting with elementary school leaders to discuss options.

Next steps:

• The subcommittee chair will schedule a follow-up open meeting the following week with Julia and building principals to continue the discussion.

Assistant Superintendent Michelle reported that a district wellness committee convened last fall and, after multiple meetings, recommended a revised wellness policy (ADF) on June 12. Key issues:

• The existing policy was not compliant with updated state nutrition guidelines.
• One bullet referencing a not-yet-adopted life-threatening allergy policy was removed; an amendment will be brought back in coming months.
• The updated policy requires adoption before the start of the school year to maintain eligibility for the free and reduced lunch program.
• The current recess language in the new draft requires a minimum of 15 minutes of recess per day for elementary students but does not specify the number of sessions.
• The chair noted the existing adopted ADF does not appear to contain any specific recess time requirement.
• The committee agreed to send the policy to the full School Committee for a vote, potentially waiving the three-readings requirement.

During the FY24 budget discussion, conversation about the reduced-services staffing budget priority list led to discussion of how to use the projected FY23 surplus. Fox recommended a comprehensive audit of the Special Education department.

Fox asked for a motion to allocate funding for an audit. Moved by Schaeffner, seconded by Alison Taylor.

Superintendent Buckey recommended speaking with the Director of Student Services prior to making any decisions to move forward with an audit.

Roll call vote: 4-1.

• Yes: Schaeffner, Alison Taylor, Ota, Fox
• No: Meagan Taylor, citing she would like Dr. Donnelley’s input prior to voting

User fee adjustments for the 2023-24 school year. A chart of suggested fee adjustments was shared.

The change

• $12 more per athlete
• Increase in the family maximum

Revenue impact and use

• About $26,000 in additional revenue
• To fund freshman sports coaching positions and transportation costs for freshman athletics

Motion to approve the amended rates moved by Alison Taylor, seconded by Schaeffner. Passed 4-0 (Meagan Taylor had not yet joined remotely; she joined at 5:40 PM).

During the FY24 budget discussion, Committee Member Jennifer Schaeffner introduced a new proposal:

“Working with administration to look at a zero-based budgeting for staffing specifically. She also recommended bringing in an outside consultant to complete the process. It was recommended that the discussion be continued at a meeting in August.”

Sarah Fox also requested an update on out-of-district tuition at the August meeting.

Where this sits in the ZBB chain

This is the third of the four ZBB conversations at School Committee in the historical catalog:

The pattern: each iteration is more specific than the last (define methodology → full methodology presented → specific scope + outside consultant proposed → concrete request and committed follow-up). The follow-through declines as the specificity rises: Cresta’s methodology presentation generated nothing; Schaeffner’s outside-consultant proposal was “continued to August” and doesn’t reappear in the catalog; the 2025 committed Oct 28 methodology meeting didn’t happen.

Other budget items this meeting

• OOD SPED prepayments: process in place since FY20. Cresta recommended a $500K prepayment for FY23. Anticipated FY23 surplus also estimated at ~$500K.
• Special-education audit: Fox moved to allocate funding for an audit; Schaeffner seconded. Superintendent Buckey recommended speaking with the Director of Student Services first. Passed 4-1 (Meagan Taylor no, wanted Dr. Donnelley’s input).
• Reduced services staffing budget priority list reviewed; discussion about using one-time surplus funding to fund recurring staffing costs.

Health Director Petty reported that after the finance committee meeting the finance director identified additional funds, raising the Board of Health budget from a proposed $303,879 to $313,091. The only remaining reduction from the prior year is approximately $1,188 in mental health psychological counseling contract services — a cut made because state grants restrict the board from reducing employee hours. The board noted it may revisit using ARPA funds to restore mental health spending after town meeting, depending on the outcome of the override vote. The finance committee had already taken its vote using the revised $313,091 figure.

Article 32, a placeholder for a school supplemental appropriation, was indefinitely postponed at the school committee’s request. The school department’s override-related funding is captured entirely in Article 31. Voted unanimously.

The school Finance Director confirmed approximately $250,000 sits in the special education stabilization fund, classified by DESE as a reserve fund. No new contribution is being requested for FY24 given tight budget conditions.

The Finance Committee noted that special education costs increased approximately $176,000 in the general fund this year and by approximately $850,000 the prior year, reflecting growing out-of-district placements and transportation costs. The stabilization balance has never been drawn upon since it was funded five or six years ago.

Article 27 was recommended for indefinite postponement unanimously.

School Committee Chair Sarah and Superintendent Dr. Buckley presented the FY24 school budget in two forms:

Key budget drivers:

• Contractual payroll obligations: +3.85% (~$1.4M)
• Out-of-district special education tuitions: +14% (state-allowed rate increase, ~$385,000); historically 2–3% annually
• Utility costs: projected +37.9% for FY24 (electricity, gas, water)
• Chapter 70 state aid: +1.29% (~$80,000) — committee and superintendent noted the Chapter 70 formula is opaque and appears to disadvantage communities with declining enrollment

Enrollment: Currently 2,622 students vs. 2,704 in FY22 (–82 students). District has reduced roughly nine teaching positions in that period consistent with enrollment decline.

Special education reserves: The circuit-breaker revolving fund has a balance of approximately $250,000; best practice is to carry one year’s circuit-breaker reimbursement. The fund has never been drawn upon but has not been grown through additional town appropriations.

Reduced-services staffing breakdown: Roughly one-third are retirements not to be refilled, one-third are currently vacant positions, one-third are filled positions to be eliminated. Impacts include fewer class sections at multiple elementary schools (larger class sizes), elimination of the middle school librarian, and elimination of the freshman sports program (~$40,000–$45,000 all-in cost).

ARPA: An ARPA grant request covers supplies, equipment, materials, and professional development previously in the aspirational budget.

The committee voted unanimously to approve the reduced-services budget of $44,837,273. The school committee noted it had voted the same evening to request the level-services figure as its override ask, consistent with the Select Board’s number.

Superintendent Dr. Bucky opened the FY24 budget hearing by highlighting district achievements before presenting the fiscal situation. He explained that payroll obligations and out-of-district special education tuitions (rising 14% vs. a historical 2–3% annually) are outpacing revenue, while the district’s Chapter 70 state aid increase is only 1.29%.

Enrollment is projected essentially flat at approximately 2,562 students.

Level-Services Budget (4.52% increase):

• Funds all contractual obligations
• Eliminates 7 vacant positions and repurposes 3
• Maintains freshman sports, school librarians, and special education staffing
• Requires a Prop 2½ override

Reduced-Services Budget (1.82% increase):

• Eliminates 33 positions
• Cuts include: world language teachers (Latin eliminated at middle school), paraprofessionals, middle school librarian, freshman coaching positions, special education co-teaching staff, elementary classroom teachers, technology integration specialist, and a custodian
• Increases class sizes district-wide
• Takes $92,000 from the building-use revolving account

Dr. Bucky also noted approximately $350,000 in ARPA requests being brought forward for equipment and materials (non-recurring), and outlined capital items agreed upon with the town including a new school bus.

Town Administrator Thatcher provided a broad budget status update:

Two budget columns under development

• Balanced budget: built to current known revenues with no override revenue; requires roughly 4% average cuts across departments; some departments left untouched where further cuts would effectively eliminate services.
• Level-services budget: represents the actual cost to maintain current programs and staffing, including 2% contractual salary increases plus step increases for all union and non-union employees.
• The dollar difference between the two columns defines the potential override ask.

Revenue side

• Governor’s FY24 budget released March 1 showed a net increase for Marblehead of approximately $7,000–$8,000 on Cherry Sheet numbers (state aid less state assessments).
• Final local aid numbers not expected until the legislature finalizes the state budget in June.

Free cash and stabilization fund

• Approximately $10.5 million in free cash was used as revenue in the current-year budget (~10% of the operating budget); the committee acknowledged this cannot be eliminated in one year.
• The existing stabilization fund holds approximately $500,000 (funded twice at $250,000 each).
• A potential second component of the override would direct funds toward building the stabilization fund, imposing a higher two-thirds town meeting threshold for future withdrawals versus a simple majority for free cash.

ClearGov budget software

• System is still being built out; department heads have logins and are working through training modules.
• Expenditure data uploaded in detail; revenue at summary level; personnel/salary tables still being uploaded.
• Current budget cycle will still use Excel; Finance Director Alicia will produce a digital budget book for FY24 even if departments are not yet fully onboarded.

Liaison check-in summary

Upcoming schedule

• March 27: Budget hearings, first half of departments (votes on Article 30 components)
• April 3: Budget hearings, second half of departments
• April 10 (latest): Warrant hearing including Article 31 override discussion
• Town Meeting: approximately two weeks after warrant hearing

The committee discussed the process for building an override budget scenario. Members requested that the superintendent provide a prioritized list of positions and programs ranked from the baseline ‘austerity’ budget upward, rather than working from the aspirational budget downward. Members noted that new program positions from the aspirational budget (e.g., diversity coach, behavioral coach) would not be included in the override request.

The Finance Committee’s warrant hearing has moved from March 27 to approximately April 11, with a final Finance Committee vote expected around April 3. The committee discussed scheduling its own public budget hearing at least three weeks before the Finance Committee date and agreed to coordinate calendars offline.

Superintendent Bucky presented a memo outlining potential FY24 reductions needed to meet the town’s preliminary appropriation — approximately an $800,000 or 1.8% increase over FY23. Reaching that figure would require reducing approximately 33.6 FTE across the five bargaining units (teachers, custodians, paras/tutors, permanent subs, CALF) plus administration.

Key context provided:

• The reduction includes $110,000 for the third year of math program implementation (required regardless of cuts)
• Two counselor positions were preserved to avoid more costly out-of-district placements
• Roughly half of the 33.6 positions are currently vacant; a few involve retirements
• Unemployment costs are already incorporated into the reduction figure

Benefits/fringe discussion: Committee members raised whether the town should return approximately $600,000 in fringe benefit savings (estimated at ~$20,000 per eliminated employee) to the school budget. Administration noted the town had required the district to fund fringe costs for new hires last year; members argued the reverse should apply. The town has not yet received its FY24 health insurance rates (expected March 1).

Committee members described the scenario as representing more than a 5% staffing reduction and noted it would increase class sizes at all levels — Elementary classes potentially rising from ~16–17 to 22–23 students; fewer sections at the middle and high schools.

The committee asked the administration to provide a prioritized list of positions and programs to be added back in any override scenario, and discussed scheduling a dedicated budget workshop meeting.

MHS Principal Dan Bauer and Assistant Principal Michelle Carlson presented proposed program of studies changes for 2023–24, seeking committee approval to proceed with course selection. Key additions include:

• AP English Seminar — bringing total AP offerings to 19
• Introduction to Manufacturing and Engineering — two courses supporting a new manufacturing/engineering CTE pathway submitted to the state for approval
• State Seal of Biliteracy — a diploma distinction tied to MCAS and world language proficiency; North Shore Community College offers 9–12 credits for recipients
• Chamber Orchestra — an after-school course
• 21st Century Skills and Life After High School — open electives
• Marblehead Academy — formalizing the existing credit recovery/SEL support program
• RTI Biology — a supportive class replacing eliminated CP2 biology

Courses eliminated include History of Rock and Roll and CP2 levels in Algebra 1 and Biology (two-year rollout). Dual enrollment seats with Salem State were also noted. The committee voted unanimously (5–0) to approve.

The ARPA working group brought forward a $400,000 allocation for literacy curriculum adoption and implementation in Marblehead’s elementary schools. The funds cover a unified curriculum plan intended to last approximately five years, after which a reassessment will be conducted. The item ranked highly on ARPA criteria given its alignment with COVID-19 recovery goals. Following the approval, approximately $3,453,100 remains in the ARPA balance.

The Town Administrator explained that the MSBA Accelerated Repair Program requires the Select Board, school superintendent, and school committee to certify compliance with 34 program requirements. The certification confirms the building is in general good use and will not be disposed of after receiving improvements. A Project Funding Agreement is expected within approximately 12 months. The board voted unanimously to enter the program and authorize the chair to sign the certification.

Two related fee items.

User fees

No change to user fees for the 2022-23 school year. Director of Finance Cresta noted the fee structure would be more closely examined in the coming year as part of budget planning.

Lunch fees

Lunch fees had not been increased “for a few years.” The recommendation was to increase them to account for rising operating costs, especially in the context of an uncertain federal decision on continuing free meals. Discussion of rising food costs, the possibility of seeking additional grants, and tiered meal plans preceded the vote.

Approved 2022-23 student meal prices:

Motion moved by Ms. Gold, seconded by Ms. Barron. Passed 5-0.

Assistant Superintendent Nan Murphy opened the retreat with an update from the Teaching and Learning Department covering:

• The approach being taken to address pandemic-related learning loss
• Social-emotional support during the summer months
• Assessment tools purchased to assist with student-data storage and progress monitoring
• Adjustments made to building schedules to be communicated by principals before the start of school
• Revisions made to the K-6 report cards, to be shared at open houses
• Instructional coaches and their role in building scope-and-sequence and professional-development planning to support educators in providing data-driven, targeted supports

Informational only; no vote.

Attorney Colby Brunt of Stoneman, Chandler & Miller LLP presented training on Open Meeting Law and Public Records Law to the committee, with case-law examples for specific scenarios.

Topics covered:

• The School Committee’s jurisdiction (focused on policy and budget)
• The need for open-meeting and public-record standards and accountability
• Examples of scenarios that may constitute an Open Meeting Law violation
• Conference attendance, email, and social-media use considerations
• Public-comment policy and correspondence procedural guidelines
• Records-request compliance and situations where legal counsel should provide guidance
• Meetings and minutes compliance, including proper archival of regular and Executive Session minutes

No vote taken – training session.

Assistant Superintendent of Finance and Operations Michelle Cresta walked the committee through what a zero-based budgeting approach would actually look like for FY24.

Core methodology

• The process is built to justify costs based on need in every salary line – not just departmental totals.
• Budgets would be set per building, not consolidated district-wide.
• No carry-forward of staffing or salary lines – each year starts at $0 and rebuilds.

Cresta’s specific recommendations for FY24

• Begin the process in October of the prior year (rather than the typical December or January start) to give principals time for genuine review.
• Incorporate an intensive overview of staffing levels, which the minutes note “was last completed some time ago.”
• Honest caveat: current staffing levels in the Finance Department would not be adequate to support the time necessary to tackle a zero-based budgeting approach.

“The current staffing levels would not be adequate to support the time necessary to tackle a zero-based budgeting approach.”

No formal vote taken on adopting the methodology – the presentation was framed as an overview for the committee’s information. The recommendation to begin the FY24 process in October was discussed but not formalized as a directive.

Why this matters now

This is the most substantive of the four ZBB discussions in the historical catalog (2020-06-08, 2022-07-19, 2023-07-06, 2025-10-17). It included a named methodology, a concrete timeline, and an honest staffing-capacity caveat. Even so, the catalog records no follow-through – the FY24 budget cycle that began in October 2022 did not become a zero-based exercise.

Superintendent William McAlduff opened the public hearing with the FY21 budget proposal.

Headline numbers

Twelve reductions made through the COVID-disrupted budget cycle

Central administration reorganization

Two positions eliminated (both already vacant):

• Human Resources Director
• Director of Operations and Technology

McAlduff noted he was able to take on the responsibilities of the HR director himself and “did not see that a district this size would require a dedicated HR director.” The two directors of IT and Operations would assume more responsibility and combined would cover the eliminated Director of Technology and Operations duties. The Director of Finance had skills that allowed them to take on procurement.

The Assistant Superintendent position was restored to full funding.

FY21 budget goals met (and missed)

Met:

• Contractual obligation including 2.5% COLA, steps, lane adjustments
• Elementary science kits + annual replenishment funding
• “Go Math” consumable material and online access
• Additional Grade 8 teacher
• Glover School full-time Guidance Counselor
• BRYT program at MHS (1 FT clinical counselor + 1 FT academic support)

Not met:

• Village School curriculum coach (cut)
• Administrative COLA (cut)

After Gold closed the public hearing, the School Committee discussion turned to specific budget refinements.

Cost monitoring (Schaeffner)

• Stressed importance of monitoring costs on a frequent basis — not waiting for the monthly finance update if costs escalate
• McAlduff: the new practice of encumbering salaries and purchase orders would allow weekly expenditure reports to be easily produced

Reallocation process (Schaeffner asked, McAlduff answered)

McAlduff’s process for handling unanticipated mid-year costs:

1. Bring the leadership team together; explain the issue
2. Work as a team to identify areas with least impact on student services
3. Ask leadership to bring options back to staff for feedback
4. Bring suggested scenarios to the SC; ask for priorities
5. Adjust plan and return to SC with final suggestion

Kindergarten revenue (Fox)

• Projected $529,000 in revenue from Kindergarten tuition
• Concern that this revenue was unlikely under COVID and should not be relied upon
• Fox asked McAlduff if he would recommend being more conservative; McAlduff said he needed to speak with Cresta
• Possibility raised: not filling two Kindergarten vacancies with full-time employees if revenue falls short

Transportation rates (Fox)

• SPED transportation has been “a million dollar driver in past years”
• Asked about locking in transportation rates for out-of-district placements before voting the budget
• McAlduff would check with Eric Oxford on where the process stood

Student-to-teacher ratios (Fox)

• DESE late-Friday guidance with several unfunded mandates
• Concern that current student-to-teacher ratios don’t line up with distancing guidelines
• Question: would adding staff be needed, and how would it be funded?

PPE share (Fox)

• Asked for clarification on the $300,000 school share of PPE given that the packet noted $180,000 from the town
• McAlduff confirmed that was a typo — the entire PPE cost would be covered by the town CARES Act allocation

Go Math curriculum study (Schaeffner)

• Plan: Math study group to start this summer, pilot fall, select new curriculum for 21-22 school year, cost in FY22
• Summer work pay typically $33/hour; likely fundable through Title 1 grant

Social-emotional needs response (Gold)

• “Everyone does what they need to do” — teachers and counselors will figure out how to meet additional needs
• New Asst Supt coming in would help with professional development on increased SEL needs

Toward the end of the meeting, member Jennifer Schaeffner turned the conversation to the FY22 budget framework.

Schaeffner’s proposal

“In the past year the need to build a zero based budget was discussed, however we were unable to do that for FY21. Coming into the next year we would need to be able to manage both the current situation of unknowns with Covid-19 and produce a zero based budget for FY22. When the new admin team came in, we needed to start immediately to determine what we wanted an education in Marblehead to look like and plan associated costs.”

McAlduff’s response (the cited quote)

“The School Committee would need to meet and possibly include the town finance side and write down what definition of a zero based budget we would be using as there are several varying definitions.”

“A large part of the FY21 budget is zero based but that there is a lot more work to be done.”

Gold’s reframe

Chair Sarah Gold appreciated McAlduff’s clarification and said the committee had done a good job of developing a zero-based budget already. What was needed now was to “move into developing a needs-based budget”, using the strategic plan that incoming Superintendent Dr. John Buckey would be developing, to design “the override we all know is needed.”

Harris on the retreat

Member David Harris agreed with McAlduff and suggested that at the summer retreat the committee work on defining what a zero-based budget means for us. Harris commended McAlduff for “admitting we have a declining enrollment” (which he said had been “very hard to get” in past years) and noted the size of the new elementary school being built as reflective of that decline. Harris said pre-COVID the FY21 budget had added a teacher at Vets, a curriculum coach at Village, and a guidance counselor at Glover, and “the current budget went beyond a zero-based budget in his mind.”

What actually happened next

The catalog of 331 minute-level entries records no follow-through on the commitment to define ZBB at the summer retreat for an FY22 build. The next ZBB conversation in the catalog is two years later (2022-07-19, the Cresta methodology presentation). That conversation also didn’t produce a formal exercise.

This is meeting one in the chain. The first three sentences out of Schaeffner’s, McAlduff’s, and Gold’s mouths sketch the recurring pattern: a member proposes ZBB; staff scopes the methodology question; the chair reframes; the retreat or August meeting promise to follow up. Each of the four iterations dies in committee.