SAUGUS — Town Manager Scott C. Crabtree is providing an update on the Town’s Fiscal Year 2027 budget process as the Finance Committee continues its public budget hearings.
Crabtree will be updating his FY27 budget recommendation to reflect the Saugus Public Schools’ operating budget request — an increase of $2,837,839 over the current FY26 school appropriation.
“We are committed to supporting strong public education and delivering reliable services across the entire community — public safety, senior services, the library, recreation, DPW, and the day-to-day services residents rely on, as well as the work of our other municipal departments,” Crabtree said. “As we work through the budget process, I’m updating my recommendation to reflect the School Department’s request while also making sure Town Meeting has clear information about the long-term impact of recurring costs.”
Ongoing Discussions and Review of School Budget Needs
Through ongoing discussions with Superintendent of Schools Michael Hashem, School Committee Chair Thomas Whittredge, Finance Committee Chair Kenneth DePatto, and School Finance Subcommittee Chair Brian Doherty, along with Town finance staff, Crabtree and the group have been meeting regularly over the last few months to understand the School Department’s budget request and key drivers — including contractual obligations, program needs, and other funding considerations.
As part of these ongoing discussions, the superintendent and school district have agreed to meet regularly and to provide information on a recurring basis, including one-year, three-year, and five-year financial projections and periodic updates on how resources are being aligned with school and district improvement planning, strategic initiatives, and measurable steps intended to strengthen student achievement.
As part of these discussions, the superintendent has agreed to bring in a consultant to help with the district’s strategic improvement plan and the implementation of actionable measures to improve the school system.
How the Process Works
The FY27 budget process begins early in the calendar year with preliminary, conservative estimates that establish an initial planning baseline. Those early figures are not final, and they are always revisited and updated as the Finance Committee hearings proceed and updated revenue, expense, fixed costs, and departmental information becomes available.
Earlier in the FY27 process, the initial estimate reflected a $1 million increase over the current FY26 school appropriation. As more complete information has become available through the ongoing budget review, the Town Manager’s recommended budget is changing to reflect the School Department’s full operating request — an additional $1,837,839 beyond the initial estimate, for a total recommended increase of $2,837,839 over the current year.
Finance Committee Hearings and Town Meeting
The Town is currently in the Finance Committee hearing phase, where departmental budgets are reviewed publicly and in detail. At the conclusion of those hearings, the Finance Committee will finalize its recommended budget for each department and forward that budget to Town Meeting, which is the Town’s appropriating authority.
Community Investment in Schools and Student Support
The community has come together in the past to speak in one voice in support of major investments in Saugus schools, including the new Middle/High School and significant renovations to the Belmonte STEAM Academy and the Veterans Early Learning Center.
Town Meeting has also supported targeted student-focused programming by establishing and funding the Supplemental Student Support Reserve Fund, a targeted stabilization fund created to supplement educational supports and strengthen student programming. Town Meeting initially funded the reserve with $3 million, and a total of $4.5 million has been set aside in this fund for supplemental student support.
In addition to the operating budget request, the School Department has also requested $1.3 million from the Supplemental Student Support Reserve Fund as part of its overall FY27 funding plan.
Schedule 19 Municipal Charges and Other Costs Paid on Behalf of the Schools
In addition to the School Department’s operating appropriation and reserve-fund requests, the Town budget includes certain costs and expenses paid on behalf of the School Department — often referred to locally as Schedule 19 municipal charges – including employee benefits such as health insurance and other school-related costs carried in municipal accounts.
Preliminary estimates indicate that these Schedule 19 municipal charges may increase by approximately $2.4 million and other one-time expenditures of approximately $500,000 in FY27, which would represent additional school-related funding beyond the operating appropriation.
Taken together, the FY27 school-related funding under consideration includes:
- $2,837,839 operating budget increase (School Department request), plus
- $1.3 million requested from the Supplemental Student Support Reserve Fund, plus
- $2.9 million projected increase in Schedule 19 municipal charges
“I appreciate the collaborative approach of the group and the additional allocations to the School Department,” Hashem said. “I’m committed to improving the financial transparency of the school budget and improving student learning and achievement.”
Sustainability and Long-Term Planning
Crabtree emphasized that school budgets include significant costs that must be evaluated with a multi-year lens.
“Recurring expenses don’t just affect one year; they carry forward and compound,” he said. “Town Meeting should have a clear understanding of the long-term impacts, and the Town should continue planning for how these costs will be supported and sustained in future years in a responsible way. Communities across Massachusetts are facing difficult decisions as rising costs put pressure on local budgets, and it is important that Saugus continues to approach these decisions thoughtfully and with a long-term view.”
Crabtree emphasized the importance of connecting resources to outcomes and long-term improvement. He said the entire community should want to see continued progress for Saugus students as the School Department aligns resources with a clear plan and measurable steps that strengthen educational outcomes.
Additional updates will be provided as the Finance Committee completes its hearings and the FY27 budget advances to Town Meeting.
