Beverly City Council & School Committee Joint Budget Meeting

March 18, 2026

The Beverly City Council and School Committee held a joint meeting on Wednesday, March 18, 2026, at 6:30 PM. The meeting focused on the FY27 budget process, including presentations from the superintendent of schools, legislative updates, school budget overview, and city budget overview. No public comments were heard. The school committee later voted on a waiver of transportation policy and entered executive session.

Legislative Updates

• Senator Joan Lovely (written update) provided an overview of the state budget process, noting that Governor Healey filed H2 for FY27 on January 28, 2026. The House budget is expected the week of April 13, 2026, and the Senate budget the week of May 18, 2026. Beverly is a minimum aid district; H2 recommends $16,179,070 in Chapter 70 funding and $7,451,043 in unrestricted general government aid. The senator pledged to advocate for increased state aid.
• Representative Manny Bowen (joined remotely) gave an update on state budget priorities, including the push for a $150 per pupil minimum aid increase (up from the governor's proposed $75). She noted that the fair share amendment is funding free school lunches and special education circuit breaker reimbursements. She also discussed pending legislation on early literacy, financial literacy, and a cell phone ban, and mentioned a $1.3 billion federal budget decrease impact on the state.

Superintendent's Report – Dr. Peter Cushing

• Dr. Cushing presented the North Shore Superintendents Roundtable (NSRT) advocacy efforts, focusing on four areas: sustainable Chapter 70 funding, special education cost stability, transportation funding, and increased unrestricted general government aid. He noted that the Chapter 70 formula is outdated and that Proposition 2½ overrides are unsustainable.
• He highlighted the need for updated facilities, including a roof and boiler replacement at Centerville School requiring MSBA funding, and ongoing capital needs for playgrounds, tennis courts, and security cameras.
• Dr. Cushing outlined his four FY27 budget priorities: (1) robust and diversified student learning opportunities, (2) comprehensive student supports in a least restrictive environment, (3) long-range strategic planning for student belonging and engagement, and (4) enhanced communication with stakeholders.
• He emphasized that the district has reduced 50 FTEs over the last two years (20 in FY24-25, 30 in FY25-26) despite budget increases, and that the district's student needs are more complex. He noted that the district has 76% of its staffing in instructional positions.

School Budget Overview – Emma Puglisi, Director of Finance

• Ms. Puglisi presented the FY27 budget drivers: contractual obligations, student enrollment (steady over 10 years), special education cost increases, inflation, and limited budget offsets.
• The district's high-needs population has grown from 37% in 2016 to 45% in 2026. Out-of-district placements have decreased due to investment in in-district programs, but costs per placement continue to rise.
• The level services budget request is $5.8 million, with an additional $1.29 million in critical needs, including 2 special education teachers at the high school, a global application teacher at the middle school, two special education teachers, an assistant principal at the elementary level, and additional paraprofessionals. Total initial request: $7.167 million.
• Ms. Puglisi noted that fee revenues cover only 14% of transportation and preschool costs and 26% of athletics costs, and that increasing fees would burden families.

City Budget Overview – Brian Ailes, Finance Director

• Mr. Ailes reviewed the financial forecast, showing a structural imbalance: expenditures (primarily healthcare, pension, and employee costs) are growing at 6.6% annually while revenues grow at 4.6%, creating a projected $3.9 million gap for FY27.
• Updates since the December forecast: Essex Tech assessment increased by $150,000 (17.4% increase over FY26); state assessments (school choice, charter school tuition) increased by $500,000; debt service savings of $250,000; healthcare premiums likely to be 9% (1% = $220,000); city payroll reduced by $200,000 through attrition; new growth from utility project added $350,000; state aid increased by $300,000; interest income and Medicaid revenue revised downward.
• Net change from forecast: approximately $60,000 improvement. Outstanding items include pension assessment (potential relief), sanitation contract (likely rate increase), and final school budget request.

School Committee Action Items

• Waiver of Policy EE (Student Transportation Services): The school committee voted 9-0 to waive policy to allow a small bus (eight passengers plus driver) to transport up to seven students on a band trip. The bus will be equipped with seat belts, and the driver will stay with the group. The district will cover any financial implications.
• Executive Session: The school committee voted 9-0 to enter executive session (pursuant to M.G.L. c. 30A, §21(a)(1) and (7)) to discuss the reputation of an employee and to review minutes from February 4, 2026, and March 11, 2026. The committee did not return to open session.

Key Outcomes

• The joint meeting provided an opportunity for both bodies to hear detailed budget presentations and discuss the FY27 financial outlook.
• The school committee approved a waiver of transportation policy for a band trip (9-0).
• The school committee voted to enter executive session (9-0).
• The city council and school committee will continue budget discussions, with the mayor expected to present a proposed budget to the city council by the end of May 2026.