Cohasset Schools Face $1.2M Financial Gap Amid Rising Costs

The Cohasset School Committee convened on February 5, 2025, to discuss the district's financial challenges, revealing a projected budget shortfall for the fiscal year 2026 (FY26). Key points of discussion included potential staffing reductions, increased student fees, and efforts to maintain educational quality while addressing a financial gap estimated at $1.2 million.

Budget Shortfall and Financial Concerns

Superintendent Sarah Shannon outlined the significant financial difficulties facing the district. Despite the town's commitment to supporting education, increasing costs in salaries, special education, and transportation have created a funding gap. The district is working to balance the budget while minimizing negative impacts on students.

“The town does everything it can to fund the schools, but they only get so much money,” Shannon explained. “Even as a town, they can't give us enough to keep up with inflation either.”

The town’s FY25 school budget was nearly $24 million, yet actual costs exceeded $25 million, creating a shortfall. Without additional state funding, the district must explore cost-cutting measures and revenue increases.

Special Education Costs on the Rise

A major contributor to the budget shortfall is the rising cost of special education services. Over the past two years, out-of-district tuition costs have increased by 14% and 4%, respectively, with another 3.67% increase anticipated for FY26. These unexpected spikes forced the district to deplete its circuit breaker reserves, leaving little financial flexibility.

Superintendent Shannon acknowledged the challenge: “We have several amazing students who require specialized programs, and those costs are rising faster than our budget can accommodate.”

Proposed Fee Increases

In an effort to close the financial gap, the School Committee is considering several fee increases, including:

• Kindergarten Tuition: Reinstating the full-day kindergarten fee at $3,000 per student could generate an estimated $300,000.

• Transportation Fees: Raising the bus fee from $350 to $400 per student could add $27,000 in revenue, with higher increases yielding even more.

• Athletic Fees: A tiered system is proposed, increasing fees for most sports to $350 while setting a $500 fee for high-cost sports like hockey, swimming, and football. This could bring in an additional $64,000.

• Student Parking Fees: Charging high school students $2 per day for parking could generate $41,000.

• Building Rental Fees: Reviewing facility rental fees could provide additional revenue.

These proposed changes will be reviewed and debated further in upcoming meetings.

Potential Staffing Reductions

If the revenue increases are not sufficient, the district may have to resort to staff reductions to balance the budget. Superintendent Shannon emphasized that every effort will be made to minimize the impact on students.

“We are trying so hard not to impact what happens in the classroom,” she said. “Every position impacts students in some way, but we will first look at non-student-facing positions.”

School Committee Chair Craig MacLellan reiterated the seriousness of the situation. “This would reduce the amount of human resources that we have in Cohasset Public Schools. Some of those may be student-facing positions if deemed necessary.”

Collective Bargaining and Future Considerations

Adding another layer of complexity, the district is currently negotiating contracts with all five of its unions, making it difficult to predict final salary expenditures. Additionally, town-wide increases in health insurance costs (estimated between 10-20%) could further strain the budget.

Looking ahead, the district aims to implement long-term financial planning strategies to prevent similar challenges in future years.

Next Steps

The School Committee will continue budget discussions in upcoming meetings, with a public hearing scheduled for March 19 and a final vote on April 2 before presenting the budget at the town meeting on May 12.

“We need to create an FY26 budget that is balanced and fiscally responsible,” Shannon stated. “This is a collaborative effort among the town, school committee, leadership, and educators.”