To the Editor,
The Manchester Essex Regional School District’s FY27 budget reflects a continued commitment to maintaining a high-quality educational program while managing the financial pressures facing public schools and our towns today.
The proposed $33.7 million budget represents a 3.5% increase, consistent with the District’s long-standing approach to steady and responsible financial planning. This is not an expansion budget. It is a level-services budget that maintains current class sizes, staffing, and core programming, while continuing to support the academic and social-emotional needs of our students.
Each year, our budget development process begins with assessing the needs of students and the educational program. From there, we address obligations such as salaries, employee benefits, transportation, and special education services. These costs now make up approximately 80% of our budget and are largely outside of the District’s direct control.
The factors driving this budget are not unique to Manchester and Essex. They reflect broader challenges facing school districts across Massachusetts, where districts are seeing continued increases in special education costs, particularly for out-of-district placements and transportation. At the same time, the Chapter 70 funding formula for state aid to schools has not kept pace with the actual cost of education, and regional transportation support remains limited despite being a state-mandated service. In addition, unrestricted local aid to cities and towns has declined as a share of the state budget, making it more difficult for communities to absorb rising costs without turning to local overrides.
Within this context, the FY27 budget reflects a balanced approach. It maintains the strength of our current program while using available financial tools in a measured and strategic way. For FY27, the District is using $600,000 in excess and deficiency (E&D) reserves as part of a multi-year plan to smooth annual increases and manage short-term cost pressures. This use of reserves is planned and temporary, and part of a broader strategy to reduce reliance on them over time. At the same time, we have adjusted our planned contribution to retiree benefits (OPEB) to $425,000 for this year. Even with this adjustment, the OPEB trust is projected to grow by approximately $1.2 million through a combination of annual funding and investment returns. Together, these steps allow us to balance the budget responsibly while continuing to make progress on long-term obligations.
This budget also supports continued progress on the priorities outlined in our Strategic Plan and District Improvement Plan, including improving student outcomes, strengthening curriculum, expanding student supports, and investing in professional learning. For more information on the MERSD Budget process please visit https://www.mersd.org/district-b4/finance-operations/fy27-budget-development.
Looking ahead, the District is continuing work on the Essex Elementary School building project. This project represents the culmination of a multi-year capital improvement plan that began with the Middle High School and will conclude with Essex Elementary.
This work is being done in partnership with the Massachusetts School Building Authority (MSBA). Partnering with the MSBA also provides Essex and Manchester with access to grant funding of up to 30% of the total project cost, helping to offset the local financial impact. Through this process, the District has evaluated options including renovation, renovation and addition, and new construction, and the Essex School Building Committee has identified a preferred design option that will be further developed this spring and brought to residents in fall 2026 for approval.
This work is about more than a building—it is an opportunity to create a modern learning environment that reflects how students learn today and supports them for decades to come. Community engagement will remain an important part of this process as we move toward further design development and a potential community vote.
Public education is one of the most important investments a community makes. Strong schools support our students and contribute to the long-term strength of both Manchester and Essex. We remain committed to maintaining a high-quality educational experience while managing resources responsibly and transparently. We are grateful for the continued partnership and support of our communities.
Pam Beaudoin, MERSD Superintendent of Schools
Michelle Cresta, MERSD Director of Finance Operations
MERSD School Committee
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