ANNUAL REPORT 2022–2023 | 7
Financial Outlook TOP TEN BUDGET CHALLENGES OF FY24 AND BEYOND
8. Identification and funding of special education services. The District has had success (from a purely financial standpoint), minimizing the need for high-cost, out-of-district placements, which may be difficult to maintain 9. Balancing of the District’s reserves and replenishment will be difficult. Reducing reserve usage has been an ambitious, but largely unmet goal; and maintaining historical turnback levels face the challenge of tighter budgets 10. Achieving the goal of eliminating All-Day Kindergarten tuition. Staff costs historically covered by tuition would be added to the budget
1. Declining revenues from the state and other non-assessment sources. With declining enrollment forecasted, A-B may never receive the benefit of increased state aid from the Student Opportunity Act (FY24 is year 3 of 6) 2. The end of pandemic relief grants and the need to reduce or eliminate some programs and incorporate over $1 million of new costs into the District budget. A-B funded numerous post-pandemic programs with infusions of Covid-related financial relief; but post-Covid learning, social-emotional challenges remain 3. Continued need for funding of critical infrastructure improvements. Attention must be focused on funding the renewed Capital Improvements Plan (CIP), which may require added debt issuance, particularly to take advantage of rebate opportunities
4. Limited ability of Acton to increase revenue under its Prop. 2 ½ levy limit. Recent budget experience (annual increases of under 3.0%) may not be sustainable for many more years in the future
5. Health insurance rates increased by 20% over the last two years.
Despite significant rate increases, the Health Insurance Trust Fund is not as healthy as is targeted and may require continued increases 6. Disproportionate increases to Minuteman Tech. High School, due to uncontrollable budget and enrollment issues. Acton students’ increased participation at Minuteman has not been fully factored into the assessment formula 7. Reductions of over 30 staff positions over the last two budget cycles. The cuts will impact the District’s ability to provide services; additionally, turnover and restructuring of senior leadership poses a challenge to implementing A-B’s Strategic Plan
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