Kevin McHugh, the district's school business administrator, briefed the committee on a Feb. 10 letter from the Department of Elementary and Secondary Education (DESE) outlining Lynn's net school spending (NSS) status.

McHugh said Lynn was "over net school spending by like $1,200,000" in FY24, which he described as a positive sign of partnership between the city and the school department. He also reported a projection for the current year showing pressures from higher-than-expected health insurance and pension costs. McHugh said those cost pressures total roughly $2,000,000 in the projection and that, after adjustments, the district expects to exceed the NSS requirement again this year by an amount he characterized in the meeting as on the order of several million dollars.

Committee members and the mayor praised intergovernmental coordination on finance, noting that net school spending calculations are complex and that the city and school department continue monthly coordination. McHugh said he would work with the city CFO to make necessary adjustments before final FY25 reporting.

No formal committee action was required; staff said the district and city will continue to reconcile projections through the fiscal year.