Norwell Faces Tough Budget Decisions Amid Rising Costs

As Norwell Public Schools enter the budget planning season, district leaders are grappling with financial constraints that could have major implications for students, staff, and programming. Superintendent Matthew Keegan and the School Committee outlined the fiscal challenges during a meeting on January 27, revealing that fixed costs, state mandates, and operational expenses are placing extraordinary pressure on the town's finances.

The Scope of the Budget Challenge

At the heart of the discussion is the district's proposed Fiscal Year 2026 (FY26) budget, which currently reflects a 7.36% increase over last year, amounting to an additional $2.45 million. However, Norwell’s ability to fund this increase remains uncertain, as town-wide fixed costs have risen dramatically, leaving little room for school budget growth under standard revenue projections.

The town is currently facing a projected $4 million budget shortfall, according to town officials. That means both the school and municipal budgets will need significant adjustments to balance expenditures.

“We are in a very, very difficult situation where fixed costs for the town...just those fixed costs alone are up about $2 million,” Keegan said. “That is a huge hit because our revenues are only $1.3 million when we talk about a 2.5% increase on our levy.”

These financial realities indicate that Norwell will likely need an operational override—a voter-approved tax increase—to sustain essential school functions. Without it, the district could face cuts that would impact staffing, special education, classroom resources, and student services.

Critical Funding Needs

The budget increase stems from several factors, including rising costs for out-of-district special education tuition, which alone requires an additional $500,000 to maintain services. Staffing needs are another significant driver, with the district identifying a fifth school nurse and an Assistant Special Education Director as critical positions. Utility and transportation costs have also surged, with heating expenses rising by $85,000 due to a new gas contract. Additionally, technology infrastructure and textbook replacements require an additional $210,000 to maintain essential digital and instructional resources.

“We are not running in a very sound budget right now, and if we don’t begin to bring that gap back together again, we are basically not running in a very sound financial position,” Keegan cautioned.

Potential Cuts If an Override Fails

If the town does not approve an override, the school budget may remain at last year’s funding levels, forcing reductions in staffing and programs. The potential cuts include eliminating the proposed Assistant Special Education Director position, removing the high school math tutor, and scaling back student support services.

Committee members voiced concerns over what this could mean for student achievement, particularly in math.

“We do not have math support at the high school other than this,” Keegan said of the tutoring program, which has been in place for four years. “This is important...but if I had to make some hard decisions, this is a decision I need to make even going into an override.”

The Role of Special Education in the Budget

One of the largest financial pressures on the district is out-of-district special education placements, which have fluctuated but remain a growing expense.

School Committee Chair Christina Kane underscored the stakes, warning that without proper funding, unexpected special education placements could force emergency budget cuts elsewhere. “Once we get into those lower levels...it’s just that money has to then come out of somewhere,” Kane explained. “And that usually means staff cuts and things like that that are really painful and harmful for students.”

Keegan added that the town had previously relied on stabilization funds and special articles to supplement special education, but this approach is unsustainable. “Last year we received [a] $500,000 article, but to truly address out-of-district special education tuitions, we need to increase our budget by $500,000. Stabilization and articles only help for one year and do not solve the problem.”

Town-Wide Fiscal Struggles

Several School Committee members expressed frustration over receiving the budget information so late in the process.

Alison Link voiced her concerns, saying, "We’ve been talking about the budget for months… today’s the first day that we know that basically the level of potential financial devastation… this just feels really late."

Christina Kane also highlighted the difficulty of getting the information at this stage, stating, "To get this information so late in the game is incredibly frustrating but also very problematic for trying to get us where we all need to be."

According to Town Administrator Darlene Sullivan, the school district’s financial stress is not occurring in isolation. Norwell’s fixed costs for pensions, healthcare, and other municipal obligations have risen steeply, exacerbating the funding gap.

“It looks like we are in a very, very difficult situation,” Keegan told the committee. “If we don’t get an override, we’re either looking at the exact same budget that we had this year, which means devastating, devastating cuts.”

Sullivan echoed the challenges, stating that Norwell is not alone in facing financial pressure. “We’re going to be looking for operational overrides not just now but every couple of years. We’re not the only town...other towns on the South Shore are facing the same reality.”

What’s Next?

The School Committee will hold a budget workshop on February 5 to refine the proposal and consider further adjustments. A joint meeting with the Select Board is scheduled for February 13, where town officials will weigh in on funding priorities. Ultimately, voters at Norwell’s annual Town Meeting in April will decide whether to approve an override to support the school budget.

“This will be a defining moment for education in Norwell,” Keegan emphasized.

The stakes are high, and with town finances stretched thin, the coming months will determine whether Norwell’s schools can maintain current staffing and programming—or face deep and painful cuts.