By Sharron Luttrell

Mendon-Upton schools are facing a $4.3 million budget gap next fiscal year, raising the likelihood that there will be a Proposition 2 ½ override request on the May town election ballot.

Rising health insurance and special education costs along with contracted salary increases are responsible for much of the shortfall, school officials said.

“The headline – I like to talk in headlines – is that accelerating costs are exceeding what public funding can sustain,” School Superintendent Maureen Cohen told a joint meeting of the Mendon and Upton select boards and finance committees on Feb. 26.

State aid to the Mendon-Upton schools has increased an average of less than 1% per year over the last decade and the local tax levy is capped each year at 2 ½%.

The largest percentage increase in the school budget is in health insurance, which will climb 32.5% in fiscal year 2027, which begins July 1. This is due to a 23% rate hike in premiums, several costly health insurance claims this year, and the unexpected mid-year enrollment of 16 new participants. Health insurance costs make up roughly 17% of the school budget.

“Health insurance is a national crisis. It’s not a state crisis, it’s not a local crisis, I think everybody’s facing it everywhere,” School Budget Director Jay Byer said.

Salaries make up nearly 57% of the school department’s budget and will increase more than 6% to $25.9 million in FY27. Special education costs will rise by 25% in FY27 to nearly $4.9 million, due to out-of-district tuition and transportation costs for students whose needs can’t be met within the district.

Last year, Mendon and Upton voters approved three debt exclusions to fund capital projects at all four district schools, including a new roof at the high school and field renovations at the high school and middle school. The combined tax increase of $63.40 per $100,000 of property value will expire when the debt is paid after 20 years. An operational budget override permanently increases the base property tax levy.

The schools last faced a significant budget shortfall in 2015 when Mendon and Upton voters passed a $1.1 million operational override.

The School Committee will vote on one of four budget scenarios at a public hearing March 9:

• $48.8 million. This strategic budget would continue the progress the schools have made since 2015 when the towns last passed operational school budget overrides.
• $47.8 million. This needs-based budget would add two special education teachers, a third-grade teacher at Clough, an English language learning teacher and a school psychologist.
• $47.5 million. This level-service budget includes a third-grade teacher at Clough and a special education teacher at Miscoe, but would cut curriculum resources, student activities and other positions.
• $43 million. This reduced-service budget would cut some teachers, administrators, paraprofessionals, aides, custodians and administrative assistants, and cause reductions to electives, AP courses, Spanish immersion, and extracurriculars. It may also cause fee increases.

Cohen characterized the current budget situation as a crossroads.

“One option for the towns might lead us to reduction in services, another is to continue our investment in our needs and our strategic priorities,” she said, noting that the district is three years into its strategic plan. “We’re making such incredible progress in lots of areas, but there’s still room and I just want to say things are really great and we’re hoping to continue that.”

More details can be found on the Mendon-Upton Regional School District budget page.

The March 9 school budget hearing begins at 7 p.m. in the Nipmuc Regional High School auditorium.