As Norwell residents prepare to vote at Town Meeting tonight, school officials shared at their most recent meeting that rising special education expenses and higher-than-expected energy costs could create financial pressure in the coming year despite a balanced budget this year.
At the April 27 School Committee meeting, administrators reported the district is on track to finish the current fiscal year slightly under budget, with a projected surplus of about $29,000. That margin represents roughly one tenth of one percent of the total budget.
Finance Director Warren McCallum said the district has worked to manage spending closely amid a year of staffing changes, utility increases and unplanned expenses.
“The fact that they line up in a way that makes this work is sometimes amazing,” McCallum said. “And in other ways is a function of the amount of time and effort we put into managing the budget.”
While the current year remains stable, officials focused much of the discussion on future costs tied to special education. The district relies on the state’s circuit breaker program to reimburse a portion of out-of-district special education expenses, but projections show a potential gap next year.
Norwell expects to receive about $1.427 million in reimbursements this year while spending roughly $1.9 million from the account. That difference reduces the amount carried forward, leaving less flexibility for future costs.
Based on current projections, the district could face a projected $65,000 gap in the circuit breaker account next year if trends hold. Officials noted that any shortfall would need to be covered within the operating budget.
“This is the thing we’ve been trying to avoid for the last 10 years, and we’re getting really, really close,” McCallum said.
Superintendent Matthew Keegan said the estimates remain uncertain, noting that reimbursement levels and student needs can change.
“The budget for next year is still just an educated guess,” Keegan said. “Could go up or could go down.”
To help offset the risk, officials said any remaining surplus from the current year would likely be directed into the circuit breaker account.
Energy costs also contributed to the district’s financial picture this year. McCallum said electricity expenses came in higher than expected, even as the district continues to rely on solar energy to offset costs.
“The electrics has actually hit us a lot more than we expected to,” he said. “Mostly because of things that are well outside anyone’s control.”
Several factors reduced the impact of the district’s solar program, including lower-than-usual energy production, temporary maintenance issues and a drop in the market value of solar credits used to offset utility bills. While the program continues to provide savings, officials said the benefit was less than anticipated this year.
“It’s still a great deal for us,” McCallum said. “It’s saving us a lot of money, but it wasn’t the savings we wanted it to be this year.”
Other areas of the budget showed mixed results. Personnel costs were lower than expected due to staffing adjustments, though those savings were partially offset by substitute coverage. Transportation and athletics remained close to projections, while operations and maintenance exceeded expectations due to equipment repairs and utility costs.
Despite those pressures, the district did not seek additional funding during the year, instead adjusting spending to remain within its appropriation. The discussion comes as residents gather for Town Meeting, where the school budget will be presented as part of the town’s overall financial plan.
About the South Shore Times
The South Shore Times is an independent, locally-owned digital news platform, free to readers, that covers communities south of Boston. Our articles are written by South Shore reporters, not AI.
For more South Shore news, subscribe to our newsletter.