Holyoke School Committee approves $128.7 million FY27 budget

HOLYOKE — The Holyoke School Committee approved an approximately $128.7 million operating budget for fiscal year 2027, which “puts students first” and invests in strategies that support all children, according to interim Superintendent Anothony Soto.

“It positions the district to weather uncertain fiscal realities anticipated in the coming years,” Soto stated.

The FY27 budget was approved during the School Committee’s June 8 meeting, and a public hearing was hosted before the meeting occurred. No major layoffs are part of this year’s budget, according to the superintendent’s presentation.

Soto provided the School Committee with the FY27 budget document, which will also be available online at holyoke.org. It outlines the balanced budget, strategic investments and key takeaways.

The recommended budget of $140 million represents a spending increase of approximately $5 million or a 4.1% increase from FY26.

The budget that the city of Holyoke published for schools is less because it does not include fringe benefits for the School Department or any additional funding used to support the general operating budget. The budget the city published is $128.7 million, which represents an increase of $4.8 million, or 3.9% over FY26.

Soto argued in his presentation that Holyoke Public Schools has invested in systems and structures to support the success of each student.

“Our schools are equipped with the resources necessary to support the academic, social-emotional and behavioral needs of their students. Each year, I see more areas with positive gains, and I anticipate this positive trajectory will continue into the future,” Soto stated. “The district has strong teachers who are receiving high-quality professional development and coaching. HPS offers a robust array of enrichment opportunities for students including sports and afterschool clubs. We follow inclusionary practices to ensure students are getting what they need in the classroom to the greatest extent possible.”

He continued, “Our facilities and outdoor spaces are in great shape and will continue to be well-maintained. Although this is my last year as the leader of HPS, I look forward to additional opportunities for collaboration and growth. Now is the time for the community to come together and collectively support Holyoke Public Schools.”

Holyoke Public Schools selected Assistant Superintendent Jackie Glasheen as its next superintendent, starting July 1. In February, the Holyoke School Committee granted a three-year contract to Soto that allows him to begin his tenure as the School Department’s chief of finance and operations on July 1.

Despite declining enrollment, the district continues to experience rising operational, transportation, and special education costs that are contributing to the overall increase in the required appropriation. Major budget drivers include average teacher salary, employee health insurance, retiree and unemployment costs and out of district tuition.

There were some uncertainties expressed in the budget presentation, including rising costs and lagging state funding. The rise of insurance, transportation, charter assessments and salaries, flattening of revenue, the decrease of enrollment, and the end of the Student Opportunity Act mean that “tradeoffs” will need to be made in future years, according to Soto. From FY26 to FY27, salaries increased by $1.1 million, charter and School choice tuition increased by $1.9 million or 10.8%, transportation increased by about $426,000, and health and life insurance increased by 8% or $704,000.

Holyoke Public Schools enrollment is estimated to decrease from 4,818 students to 4,755 students from FY26 to FY27. The three-year projections show that the number of students will continue to decrease.

Given that other factors stay consistent, Soto stated that he anticipates that Holyoke’s’ will flatten at the beginning of the FY28 school year and beyond.
The majority of the district’s foundation budget comes from state aid, 88.2%, which is combined with local funds and appropriated by the city.

According to the latest data published on the Department of Elementary and Secondary Education’s website, Holyoke is one of 16 communities in the state that spent at or below minimum new school spending requirements.

On average, across the state, districts are funded 30% above the net school spending requirement. If this were possible in Holyoke, this would mean an additional $37.6 million would be added to the school’s budget.

Although there were no major layoffs or programmatic reductions, according to the presentation, when the district first began to put together its FY27 budget, it faced a $2.6 million budget gap that grew to $2.9 million. The gap was closed by allocating $597,000 of general funds and a combination of $1.7 million in cabinet level budget reductions.

The reductions included the elimination of an assistant superintendent, the elimination of the chief of strategy full-time equivalent, and other budget reductions from supplies and stipends from academics, language access and enrollment, pupil services and finance, operations and human resources.

The School Committee unanimously approved the FY27 school budget. The approved budget will now go before the full City Council.