Town Select Board reveals $6 million school budget gap amid rising benefit costs

The School Finance Subcommittee of Brookline Public Schools convened on December 11, 2024, to discuss the financial implications of the town's recent financial plan presented at the select board meeting. The meeting focused on the town-school revenue split, projected expenditures, and the challenges facing the school budget for the upcoming fiscal year.

The discussion began with an overview of the town-school revenue split, which involves estimating gross revenue and subtracting non-departmental fixed costs to arrive at a net revenue figure. This net revenue is then allocated between the town and the school. For fiscal year 2025, the school’s appropriation is set at approximately $136 million, with an anticipated revenue of about $2.78 million available to support school expenses.

A significant concern raised during the meeting was the projected $6 million gap in the school budget. This gap is attributed not only to rising expenses but also to lower-than-expected revenues. The subcommittee noted that while the expenditure growth for the school is projected at $8.8 million, this figure is based on a 5% increase in costs, which is a standard placeholder used historically. The actual budget for the next fiscal year is still under development, with final numbers pending.

The subcommittee also discussed the impact of rising benefit costs on the budget. It was noted that health insurance costs have increased by 10% this year, with projections for a 12% increase next year, significantly higher than the previously estimated 6%. This increase in benefit costs is a major factor contributing to the overall budget challenges.

As the meeting progressed, members expressed the need for clarity on how these financial figures would affect the school’s ability to meet its obligations and maintain quality education. The subcommittee emphasized the importance of understanding the components of the projected budget gap and the necessity for ongoing analysis as the budget is finalized.

In conclusion, the meeting highlighted the complexities of school finance in Brookline, particularly in light of rising costs and fluctuating revenues. The subcommittee plans to continue monitoring these financial developments closely as they prepare for the upcoming fiscal year. Further discussions and analyses will be essential to address the budgetary challenges and ensure the sustainability of school funding.