The School Committee on Thursday approved a revised fiscal year 2027 operating budget totaling $71,207,200 — a reduction of $629,288. The change occurred because of a request by the town, citing projected increases in health insurance rates.

Superintendent Evan Bishop explained the town originally approached funding a 9% health insurance increase but now anticipated hikes are at 18% to 22%, based on recent quotes.

As a result, the town is expecting a $1.3 million deficit it needs to make up.

The superintendent said the news came the previous Friday, and administrators and directors worked over the weekend and earlier this week “around the clock” trying to find areas in the budget to cut to address the gap.

“It’s been a challenging last few days,” Bishop said. “I know we put forth what I think was a thoughtful, student-centered budget. And then to have to revisit it at this stage is disappointing to say the least.”

Before reviewing specific cuts, committee members questioned what is driving that high-percentage increase, which member Chris Masters termed “insane.”

Bishop explained the town shopped around for different insurers, but a lot of them did not like the high utilization rate by employees. “The medical loss ratio exceeds 100%,” he said, creating the situation.

School Committee chair Kyla McSweeney said some companies would not provide quotes to the town administrator because of the high usage rate.

While acknowledging that privacy about employees’ health issues is essential, Masters and vice chair Susan Stephenson noted that trends in the school buildings should be looked at and made known.

“God forbid we have an unhealthy building that was driving things,” Stephenson said.

Masters agreed, saying, for example, “In X, Y, Z building, a lot of people have cancer. … Without violating people’s privacy, that’s the type of information we’d like to know.”

Susan Rothermich, assistant superintendent of finance and operations, said the town’s insurance advisory committee would be meeting through next year to look at the claims and what is happening.

She said a representative from each union would serve on that board, and any plan design changes would have to negotiated with the unions.

“Something has to change,” Masters said. “This does not seem sustainable.”

Member Jamie Wronka noted rising insurance costs are a statewide issue, with Rothermich confirming other area school districts are facing the same situation. Rising medical and prescription costs add to the problem, Rothermich said.

Cavanaugh asked about increases in premiums for employees, which Rothermich said would be the town’s responsibility to convey. “I think staff will be surprised,” she added.

Bishop said he recommends the insurance advisory committee meets at least four times per year instead of once as is the practice now. More frequent conversations would help with timing, and the town could see what was coming earlier, he said.

The superintendent said the items in the budget “pushed down the road for another year” include $104,000 in technology, $77,025 for a middle school visual arts teacher to alleviate very large class sizes, $38,512 for a half-time ESOL (English for speakers of other languages) teacher at Marathon School, $132,000 from the Buildings and Grounds Department, and $30,000 in contracted services.

The revisions also include increasing the use of revolving funds by $150,000.

Other reductions were in professional development, legal fees, general supplies, middle school bathroom upgrades and more.

The new budget total of $71.2 million reflects an increase of 4.92% over last year. Previously, it was 5.84% over FY 26, Bishop said.

Contracts approved, capital request moved forward

In other business, the committee approved two contracts, both running from July 1, 2026, to June 30, 2029. One is for Helene Desjardins, director of student services, and the other is for Cynthia Mahr, director of finance/chief financial officer.

The committee also agreed to move forward with a capital request for middle school furniture totaling $222,681.40, contingent upon approval at Annual Town Meeting next month.

Rothermich explained that an overage of $5,681.40 can be covered by either the operating budget or the building use revolving account as needed.