A significant portion of the meeting addressed the Hamilton Wenham School District’s budget, which is expected to rise by 11.52% due to a variety of factors, including a shift in budget apportionment from Hamilton to Wenham. This shift could see about $150,000 transferred under the current budget scenario. With anticipated increases in Essex Tech assessments due to potential enrollment growth, the district is preparing for a challenging financial outlook. The discussion also highlighted a potential 17% increase in trash collection costs and a projected 10% rise in pension costs, further contributing to fiscal concerns.

The Hamilton side of the discussion presented a bleak picture, projecting only 2.53% revenue growth for FY27, resulting in a potential $1.4 million deficit. This could necessitate a nearly 9.5% reduction in town spending. Known cost increases for Hamilton, amounting to $850,000, do not reflect new services but rather unavoidable cost escalations. Strategies to alleviate financial pressures were discussed, including potential savings from regionalizing emergency operations and the prospect of new revenue from the Gordon Conwell property.

Health insurance premiums emerged as a concern, with projections indicating a 16% to 22% increase, which could add around $200,000 to the budget. A member questioned the sustainability of such increases, highlighting broader societal concerns over healthcare costs. The health insurance budget for FY27 is projected at $4.7 million, a 15.5% increase. The district’s health insurance contribution adjustment from 63% to 65% further adds $123,000 to the budget. This low contribution rate compared to other districts, which average between 70% and 80%, was noted to impact the district’s ability to attract and retain quality staff.

The meeting also delved into the rising costs of staffing and collective bargaining agreements. The payroll budget for FY27 is projected at $28.7 million, representing an approximate 4.2% increase. The most substantial budget item noted was the cost-of-living adjustments (COLAs), projected to approach $1 million, contributing to almost a 3% assessment increase to the towns. Expenditure on long-term substitutes had also exceeded expectations, necessitating a marked increase in that line item for the upcoming budget.

Discussions on potential security upgrades for schools were highlighted, with proposals for installing security vestibules at all five schools. The need for improved security measures was emphasized, especially in the current climate concerning school safety. While vestibules would offer a critical containment measure, questions were raised about whether more comprehensive security investments might be necessary.

A notable topic was the scheduling and planning of future budget meetings, with consensus on having budget packets ready by the Wednesday before the first Saturday budget meeting. However, the committee recognized that this timeline might not always be feasible and adjustments might be necessary. An inquiry into solar projects at the high school and middle school offered optimism about future energy cost reductions, as a solar canopy installation could decrease electricity expenses under a 25-year contract.

The committee also examined enrollment statistics and Chapter 70 funding. Enrollment had increased by 2.1%, translating to an additional 176 students. However, it was noted that between 300 and 375 children in the community were not attending public schools. The superintendent highlighted disparities in Chapter 70 funding, noting that small regional districts like Hamilton-Wenham are often disadvantaged by the funding formula. The importance of advocating for changes to this framework was underscored, as current funding falls short of actual spending.