Algonquin Regional High School and regional officials presented a recommended FY26 regional operating budget to the Northborough Appropriations Committee on March 4 that carried a 5.42% increase over FY25 and a recommended total of $29,382,156.

Becky Pellegrino, the region’s finance lead, said the FY26 recommendation reflected $1.8 million in reductions found during the review process and included offsets such as anticipated circuit‑breaker funds and one‑time state receipts. A large, newly projected residential special‑education placement — which officials estimated could cost roughly $700,000 for the coming year — and lagged circuit‑breaker reimbursement related to that placement were central elements shaping the regional number.

Regional leaders also told the committee they received late notification from their health‑insurance provider that the renewal could be a 24.9% increase. Officials said they are negotiating aggressively and are using a planning assumption closer to 16% while they seek bids and alternatives; the district shares a pooled plan with town employees in Northborough and Southborough. “They did share that it was a 24.9% increase. That’s not acceptable,” one presenter said, adding the region requested more favorable terms and is coordinating closely with both towns’ administrators.

Transportation costs were another major pressure: the regional presentation carried a sizeable adjustment for pupil transportation, including anticipated increases and a recent procurement process that produced bids above the prior contract. Pellegrino said regional transportation is about 8% of the budget and that the district worked to identify $1.3 million of budget drivers that wind up concentrated in transportation, insurance and special education.

The school committee also approved a capital assessment proposal that would add a regional capital article of roughly $560,000 for FY26; given the health‑insurance news, committee leadership recommended pausing many proposed capital projects and limiting FY26 capital work to priority roof repairs (approximate cost $175,000) unless finances improve. The regional team also outlined debt schedules, noting the renovation bond payment ends in FY27 and an athletic‑complex financing would begin in FY27, which will affect FY27 assessments.

Pellegrino told the committee the region plans to use about $500,000 of anticipated FY26 circuit‑breaker reimbursement in advance to help cover the large residential placement, and the committee also discussed the timing of reimbursements and one‑time offsets already received from the state.