Assistant Superintendent Jennifer Voyik discusses budget drivers for the FY26 budget during the Feb. 6 School Committee meeting.
Reminder Publishing screen capture by Tyler Garnet
SOUTH HADLEY — During the Feb. 6 School Committee meeting, Superintendent Mark McLaughlin and Assistant Superintendent of Finance and Business Operations Jennifer Voyik gave a fiscal year 2026 preliminary budget presentation.
During the presentation, Voyik said that South Hadley Public Schools would need approximately a $2.1 million increase to have a level service budget and all the budget drivers and costs covered for FY26.
Town Administrator Lisa Wong recently presented a preliminary town budget to the Select Board about the likelihood of a level service budget, which would yield a budget deficit of $3.5 million to $4 million.
Most department budgets will aim for a max of 2% growth, with most at level spending, which means cutbacks due to inflation and contractual increases.
Voyik explained a level service budget means all the services would remain the same, so South Hadley schools would not be able to add any increase service to the school budget, but that all services would be able to remain the same.
She further explained, “That’s different then, because that would be an 8% increase to the town budget, to have a level service budget. What is being proposed is a level spending budget and basically what that means is if you had $1,000 last year, you have $1,000 this year for your total budget and while services and costs and things like that rise, you have the same amount of funds to spend for each department’s budget.”
Some reasons for a level funding or level spending budget within South Hadley is because the health insurance trust is set to increase 19% which will add $1 million to the budget. The retirement trust is set to increase 10.3% adding $500,000 to the budget and general liability is set to increase by $15%, adding $70,000 to the budget.
Ledges and wastewater are also set to increase by 2% and rising expenses but the state aid production is staying close to the same.
Budget drivers for FY26 school budget include transportation, vocation tuitions, salaries and special education services.
Voyik also provided a Chapter 70 breakdown that included approximately a $134,000 increase. Voyik did note that the summary is based on the current governor’s projected budget for Chapter 70.
“Between all of the estimated revenues and the estimated expenses, we’re looking at pretty much breaking even as far as state aid. Chapter 70 is specifically education funding and so I think the important number is, for a district that has a $24-$25 million budget, the increase to Chapter 70 funding from the state is only $134,850,” Voyik explained.
The foundation aid increase from FY25 is zero.
McLaughlin provided a summary of the challenges that they budget faces this year and said, “they are not insignificant this year.”
McLaughlin discussed additional sources of concern that included entitlement funding, like titles grants and special education grants, Medicaid reimbursements and school breakfast/lunch reimbursements.
His warning and concerns come after a number of new executive orders and changes to funding from the Trump administration.
These orders could have major impacts on South Hadley Public Schools if federal education and health costs are cut.
McLaughlin explained, “We had coming from Washington, just a week ago or so, the threat to entitlement grants and special [education] grants which for our district would total about a million dollars. That is beyond the bone, and we can’t be sure that wouldn’t happen.”
Medicaid reimbursements total $115,000 and relates to direct service to students like occupation or physical therapy. School breakfast and lunch reimbursement totals $200,000.
McLaughlin explained that President Donald Trump’s attempt to freeze federal loans and grants, a move that was rescinded, could greatly impact the district’s budget.
“All of those things are unknown right now,” McLaughlin said, “I’ll just be honest, they should never be unknown, they should never be unknown. There has never been a time where there has been, at least in the last 50 years more, that there’s even been a question of that and the fact that we’re even having to say it as additional sources of concern I hope registers with all of us. It certainly has registered with us.”
McLaughlin said him and the district are working to address different avenues to address the upcoming budget challenges including transportation, clubs and activities, class size, services, personnel and school start and end times.
“If our concerns come to pass, we’re going to have to look at everything,” he stated.
McLaughlin said the presentation will be posted on the school district’s website homepage at southhadleyschools.org.
