One notable issues discussed was the school department’s financial situation, with a reported $3 million deficit stemming from higher-than-expected salaries, grant allocation issues, and increased out-of-district placement costs. The committee emphasized the need for proactive measures, such as implementing a soft freeze on non-essential spending, to manage this shortfall. Concerns were raised about potential financial mismanagement within the Out-of-School Services (OSS) department, although specific allegations remained unaddressed. The fiscal challenges extended beyond the school department, as the town faced a $630,000 deficit, down from an earlier projection of $1.3 million. Efforts to resolve this included departmental reductions while aiming to avoid layoffs.

The committee also delved into the scope and oversight of a proposed audit, sparked by the resignation of Lisa O’Connell, who had voiced concerns about the school department’s financial management. The audit would investigate these claims and recommend changes, overseen by both the audit committee and the school committee. Discussions focused on the audit’s scope, with suggestions for the Town School Partnership to play a role in oversight, given its involvement with both school and town staffing.

Key to the audit discussions was the review of the audit scope of services and the auditor’s reporting structure. The school committee planned to meet the next day to finalize the audit scope. A proposal was made for the auditor to report to both the school committee and the Town School Partnership, further highlighting the importance of a collaborative approach. The committee voted on the revised audit scope, passing the motion to proceed, with the auditor expected to provide updates to both the school committee and the Town School Partnership.

In addition to the audit and budget talks, the meeting addressed the management of free cash, with discussions on whether a portion of the surplus could be used to mitigate deficits. It was noted that the drivers of free cash were often one-time in nature, cautioning against reliance on these funds for ongoing budgetary issues. Moreover, the conversation touched on fiscal year 2026 considerations, noting a 3.1% increase in Chapter 70 funding and adjustments in property tax growth and fixed costs, including health insurance.

Finally, the meeting provided a positive update on school building projects, with the final Guaranteed Maximum Price set at $164 million, below the original budget of $168 million. The Massachusetts School Building Authority is expected to reimburse $45 million for the project, contributing to the financial landscape discussed throughout the meeting.