Fiscal Year 26 Stoneham Public Schools Budget Update

Letter from David Ljungberg (Superintendent of Stoneham Public Schools)

Dear SPS Community, Faculty/Staff/Colleagues:

I am writing as a follow up to two public meetings during which I shared with the Triboard and the School Committee that we are yet again, facing a significant budget deficit between $4 million and $4.5 million dollars for FY26.  This follows a year that we had a deficit of nearly $2 million which we were able to bring down to $1.3 million with remaining ARPA funds from the town and state earmarks, which combined, totaled $750,000.

Why is this happening?  Is money being mismanaged?

The quick answer here is that funding is NOT being mismanaged.  In fact, more than ever in my tenure in Stoneham, the budget has had a higher level of management and scrutiny.  We are currently working with a third party (the Town’s auditors) to make sure we have not missed anything. 

As described in detail in public meetings this fall, due to a combination of rising operational costs, significant increases in Special Education Out of District Tuitions and Transportation, the expenditure of all federal COVID funds, limitations in state funding, a rise in student needs and services, and the cost of inflation to provide those services, we are currently facing a projected shortfall as follows:

• Right off the top, we need to cover the $750,000 that we received in subsidies from ARPA and state earmarks from last year.

• ESSER III funds were depleted to cover the costs associated with the MOU for moving PreK and SHS into the new Stoneham early Literacy Center and the High School.

• In June of 2024, after the budget had been approved and appropriated by School Committee and Town Meeting, a request of $466,900 landed on my desk for additional costs to cover the following unbudgeted positions for this school year:

• In July, 2024 our contract with special education transportation that is provided by NRT, was settled WAY above what we anticipated.  That increase amounted to $435,000 above our budget.  This was a $35% increase in special education transportation costs.  It is also noteworthy that this contract with NRT was negotiated with the “buying power” of 13 other SEEM Collaborative school districts, so this was a collective effort to get the best deal.  Unfortunately, this is going up AGAIN by 25% in FY26, for an additional $400,000.

• Out of District Special Education tuitions are going up by 3.67% for FY26, representing an added $1.2 million dollars to the costs.  SEEM Collaborative Tuition is increasing by nearly 9%, repressing another $80,000.  Remember that last year OOD costs went up by 4.67% and the year prior by 14%.

• The cost to run our buildings (keeping on the lights, heat, and supplies) is going up by $100,000.

• STEPS and Lanes for bargaining units will cost $500,000 NOT including COLA increases. *

• We have 38 more students this year than we did last year with more anticipated for the coming year.

• The number of students receiving Special Education services went up in 2025 by 27 students, from 566 to 593 (to date)

• The number of students attending out of district placements went up by 4 students, at an average cost of $124,000 per student, NOT including an average cost of $25,000-$30,000 per student to provide transportation for each out of district placement (to date).

• The number of students receiving ELL services rose from 126 students in 2023-2024 to 136 in 2024-2025 (to date).

• The number of students being referred for special education testing so far this year (55) is outpacing the number of referrals received last year at this time (43). 

• The Preschool, whose primary purpose is to provide supports and services to students who have an IEP, is nearly full, with 31 referrals currently in the pipeline from Early Intervention. 

The above increases, when added together, total $4,031,900 in added costs for FY26, painting a bleak picture, and there is no way to sugar coat the challenges we are facing ahead for FY26. 

Unknowns:

Potential for Redistricting:

The district needs to take a very hard look at whether a redistricting solution is a cost-effective way to mitigate some of the impacts of potential reductions for FY26.  Redistricting has been a conversation over the past 10 years in Stoneham, expedited by the fact that we are in a growth spurt with students moving into the elementary schools at a faster pace than the current budget situation can sustain.  Our schools have disproportionate numbers of students with higher needs, creating disparities between schools, grade levels, class sizes, and demographics.

Another major consideration with redistricting is how many students would then require bus transportation to school?  State law requires that students who live 2 or more miles, and attend grades K-6, shall receive transportation in Massachusetts.  Would the cost savings presented by a redistricting option still be realized with the addition of buses?

*Bargaining

It is no secret that Stoneham struggles to compete with surrounding municipalities and districts when it comes to competitive salaries to attract and retain talented educators.  On June 30th, 2025 the current Collective Bargaining Agreements with ESPs, Cafeteria, Custodians, Secretaries, Teachers, and the Administrative Collective Bargaining Unit will be up for renewal.

What this means:

This is one of the most complex scenarios I have witnessed as a school administrator over the last 15 years.  All students and programs across the district will be impacted in order to keep a balanced budget for FY26, as required by law.

• Reductions in programs and services:

Without additional revenue we will need to scale back important educational programs, extracurricular activities, and support services that directly benefit our students.

• Impact on staffing:

We are exploring all options but to balance the budget, staff, faculty, and administrative reductions are inevitable.

• Effect on classroom quality:

A reduced budget will limit our ability to provide essential resources like reasonable class sizes, manageable caseloads, updated technology, instructional materials, and necessary supplies for our classrooms.

What we are doing:

• Comprehensive review:

I have been working diligently with the district leadership team and school committee and we are conducting a thorough examination of all budget lines to identify potential cost-saving measures.

• Community engagement:

We are committed to open communication and will be holding public meetings as follows:

December 12th:  School Committee Meeting Budget Presentation.  At this time, I will be providing high level concepts of budget reductions but will also be presenting some very specific line items that are proposed reductions. 

January 9th:  School Committee Public Hearing

January 23rd:  The School Committee will need to vote on a budget number to send to the Town Administrator.

Meanwhile, the Triboard has meetings scheduled for:

December 10th:  I do not anticipate the School Budget to be an agenda item for this meeting.

January 7th:  Triboard Meeting:  I anticipate that the School Budget will be discussed at this meeting and there may be an agenda item related to discussion regarding an override.

I will also be scheduling time to have some “open office” hours and time to meet with PTO’s and School Councils over the coming months to address questions and concerns regarding anticipated budget reductions.

• Exploring funding options:

We are actively exploring additional revenue sources, including potential grants for increased funding.

How you can help:

• Stay informed:

Please attend or watch public meetings, read updates, and attend other informational sessions as they become posted.  I will be developing a section for the budget on our district website for regular updates and detailed information about the budget situation.

• Attend community forums:

Share your perspective and participate in discussions on potential solutions.

• Advocate for our schools:

Reach out to your friends and neighbors to help them understand our budget situation and to be informed citizens as we move through this process.

I understand the concerns this news raises, and I am dedicated to working collaboratively with our community to navigate this challenging situation.

This process is not easy for anyone- and that includes town officials, board members, the School Committee, the Administrative Leadership Team, and all of our hard working and dedicated faculty and staff.  Please know that I will do everything within my authority to work tirelessly on this challenge in the coming weeks and months.

Sincerely,

David Ljungberg

Superintendent, Stoneham Public Schools