The Mendon-Upton Regional School District held an Open Budget Hearing on March 10, 2025, to discuss the financial outlook for the upcoming fiscal year. The meeting focused on addressing a previous budget shortfall of nearly $1.8 million, which has now been resolved. The district's budget for the next year is projected to increase by approximately $1.2 million, reflecting a net increase of just under 3%.

Key discussions centered around the breakdown of expenditures, with employee salaries and benefits accounting for nearly 77% of the total budget. The projected salary expenses for the next year are approximately $25.9 million, which includes increases due to new positions and anticipated health insurance costs, projected to rise by 9%. The district is transitioning back to Harvard Pilgrim Healthcare for health insurance management after experiencing issues with its previous provider.

On the revenue side, the district anticipates a modest increase in state aid, with Chapter 70 funding expected to rise by $75 per student. However, the district remains classified as a minimum aid district, meaning it does not receive sufficient funding to meet its foundation budget. The overall state aid is projected to be around $360,809, reflecting a growth rate of just 1.25% over the past 11 years.

Transportation costs are also a concern, with a 12% increase anticipated. The district is required to pay tuition for students attending charter schools, which has become a significant financial burden. Although there is a slight increase in reimbursement for charter school tuition, it does not fully offset the rising costs.

The meeting highlighted disparities in local contributions from the towns of Mendon and Upton, with Upton facing a substantial increase of $631,000 in its minimum local contribution, while Mendon’s contribution is only increasing by $120,000. This discrepancy is expected to strain Upton's budget, as it represents a significant portion of the town's new revenue growth.

The district plans to continue utilizing its Excess and Deficiency (E&D) funds to balance the budget, with a projected withdrawal of $1 million from these reserves. The E&D balance has been decreasing in recent years, raising concerns about maintaining adequate reserves for future needs.

Overall, the Mendon-Upton Regional School District is navigating a complex financial landscape, balancing rising costs with limited revenue growth while striving to maintain quality education for its students. The final budget numbers will not be confirmed until the state budget is finalized later in the year.