Newton Public Schools Digital Budget Book FY2027
FISCAL YEAR 2027 JULY 1, 2026 - JUNE 30, 2027 SCHOOL COMMITTEE BUDGET
Dr. Anna P. Nolin, Ed.D. Superintendent of Schools Newton Public Schools
Connect with us: Phone: 617-559-6000 Website: newton.k12.ma.us
100 Walnut Street Newton, MA 02460
District Leadership
School Committee
Alicia Piedalue , Chair - Ward 7 Jason Bhardwaj, Vice Chair - Ward 3 Jonathan Greene - Ward 6 Arriana Proia - Ward 1 Ben Schlesinger - Ward 5
Victor Lee - Ward 8 Tamika Olszewsk i - Ward 4
Linda Swain - Ward 2 Mayor Marc Laredo
School District first-level administrative personnel Dr. Anna Nolin Superintendent of Schools & Head Teacher Liam Hurley
Assistant Superintendent, Chief Financial & Administrative Officer
Dr. Ayesha Farag
Assistant Superintendent, Elementary Education
Dr. Eugene Roundtree
Assistant Superintendent, Secondary Education & Special Programs
Casey Ngo-Miller
Assistant Superintendent, Student Services
Dr. Gina Flanagan
Assistant Superintendent, Teaching and Learning
Dr. Joany Santa
Director, Human Resources
Steven Rattendi
Director, Information Technology and Library Services
Christina Maryland, MBA
Director, Communications & Family Engagement
Allison Levit
Director, English Language Learners Program
Kathy Lopes
Director, Diversity, Equity, and Inclusion
Lisa Gilbert-Smith
Director, METCO Program
David Stickney
Director, Facilities
Dr. Katy Hogue
Chief, Data and Research
Jill Murray Grady
General Counsel
School Leadership
Preschool and Elementary Principals
Kathleen Browning Orla Higgins Averill Diana Guzzi Simone Kotraba Eric Sprung Elizabeth Herlihy Mark Chitty
617 - 559 - 6050 617 - 559 - 9300 617 - 559 - 9330 617 - 559 - 9360 617 - 559 - 9400 617 - 559 - 9450 617 - 559 - 9500 617 - 559 - 9510 617 - 559 - 9540 617 - 559 - 9570 617 - 559 - 9600 617 - 559 - 9630 617 - 559 - 9660 617 - 559 - 6450 617 - 559 - 6480 617 - 559 - 6750
Newton Early Childhood Program Angier Elementary Bowen Elementary Burr Elementary Cabot Elementary Countryside Elementary Franklin Elementary Horace Mann Elementary Lincoln - Eliot Elementary Mason Rice Elementary Memorial Spaulding Elementary Peirce Elementary Underwood Elementary Ward Elementary
Mark Nardelli Maura Morse Jacob Bultema Jamie Yadoff
Andrea Vargas Suzie Talukdar Rebecca Brogadir Anthony Byers Kate O ’ Leary
Williams Elementary Zervas Elementary
Middle and High School Principals
Bigelow Middle School Brown Middle School F . A . Day Middle School Oak Hill Middle School Newton North High School Newton South High School
Dr . Dan Green Kimberly Lysaght Jacqueline Mann John Harutunian
617 - 559 - 6800 617 - 559 - 6900 617 - 559 - 9100 617 - 559 - 9200 617 - 559 - 6400 617 - 559 - 6500
Henry Turner Tamara Stras
Budget Administration
Dr. Anna Nolin ; Superintendent of Schools
Liam Hurley; Assistant Superintendent/Chief Financial & Administrative Officer Alyssa Baringer; Finance Manager Awino Odhiambo; Budget Analyst Janelle Sutherland; Business Operations Coordinator
Budget Award
Table of Contents Executive Summary
Budget Message from the Superintendent
2-6
Organizational Section
City of Newton: History & Profile
8-9
Overview of NPS
9-13
NPS District Leadership NPS Organizational Chart NPS School Leadership NPS Strategic Plans & Goals
14 15 16
17-19 19-20
Budget Process Policies & Regulations
NPS Basis of Accounting NPS School Fund Types
21
21-25 25-27 28-30 30-32 34-35 36-39 40-42 43-47 48-91
NPS Budget Administration & Management Process
NPS Budget Guideline NPS Budget Timeline
Financial Section
Conditions and Assumptions of the Budget
NPS Budget Context Budget Summaries Budget by Account
Budget Detail by Responsibility Center
NPS Additional Detail for Grants & Revolving Funds
92-106
NPS High School Athletics Budget
107
Out of District Tuition & Circuit Breaker Reimbursement
108-111 112-193 194-199 200-226 201-202 203-209 210-213 214-219 220-226
Budget by Location
Capital Improvement Plan Financial Appendices
Newton Public Schools Revenue Summary
Staffing FTE Data Health Insurance
Per Pupil Spending Overview
Utilities Overview
Informational Section
City Of Newton Taxes & Valuation Overview
228-236
City Costs of School Debt
236
Personnel Resource Allocation Detail
237-238 239-246 247-257 258-306 307-318
Student Enrollment Detail
Student Achievement & Growth
Detailed Class Size Data
Glossary of Terms & Acronyms
EXECUTIVE SUMMARY The executive summary serves as a stand-alone liftable document that presents a comprehensive financial picture of the Newton Public School District in narrative, numeric and graphic form. Information provided here is also included in depth within the appropriate budget sections (Organizational, Financial, and Informational)
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Superintendent’s FY27 Budget Proposal
Strategic Vision: Building a Foundation for Every Student The FY27 budget proposal for Newton Public Schools (NPS) is more than a financial ledger; it is a strategic instrument designed to convert the "Portrait of a Learner" vision and our district THRIVE 2030 strategic plan into a daily educational reality. This budget serves as the foundational mechanism for the district's ultimate mission: building an environment where every student has the tools to thrive. By aligning our fiscal resources with this "destination," we ensure that every dollar is an investment in student outcomes. The strategic plan guides our which and our Portrait of a Learner serves as our North Star, dictating that we prioritize inclusive and rigorous environments. These community created goals and vision requires us to move beyond basic operations and toward targeted academic interventions that address the diverse needs of our modern student body. Every decision we make must move us toward our district vision of inclusive, rigorous learning environments where every student is known, challenged, and supported. To realize this vision in a volatile economic landscape, the district has adopted a new standard of financial transparency, moving to a reporting model that clarifies the true scale of our operations. The Transparency Shift: Transitioning from 'Net' to 'Gross' Reporting A primary objective of this budget cycle is the shift to "Gross" reporting. Historically, NPS focused on the "Net" budget—the specific allocation requested from the City. However, this provided an incomplete picture of the actual cost of educating Newton’s students. By moving to "Gross" reporting, we provide full institutional accountability and ensure the community understands the total cost of operations, which is significantly higher than the city-funded portion alone. This "all-in" approach prevents the under-representation of our true operational complexity and highlights our reliance on diversified funding streams. Operations currently rely on over $19.55M in funding beyond the local tax allocation to balance the books. We want taxpayer confidence and therefore bring forward even more transparency and explanation to show our work, expenses and needs.
The 'Net' vs. 'Gross' Reality (FY26 Baseline) Component
Amount
Type
FY26 Net Budget (City Allocation)
$297.4M
City-Funded
Circuit Breaker / Out-of-District (OOD)
$7.84M
Non-City Funding
Other Grants (IDEA/METCO)
$4.81M
Non-City Funding
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Component
Amount
Type
Fees (Tuition/Athletics/Building)
$3.55M
Non-City Funding
Carryforward
$3.35M
Non-City Funding
Total Non-City Funding Sources
$19.55M
No type listed
Tenure Turnover Savings
$2.67M
Expenditure Reduction
FY26 Gross Budget (All-In Operations) Total Operations Note: Tenure Turnover Savings represent an internal expenditure reduction within the city budget, rather than external revenue, but are critical to bridging the gap between the Net allocation and Gross operational costs. *Free cash adjustment for K-aide support ($0.9M) and 2 additional free cash items that did not lower the budget ($0.2M) $318.5M* By presenting the Gross figure, NPS ensures the community recognizes that "Level Service" is a complex coordination of multiple funding sources. This transparency is the prerequisite for the fiscal discipline we have maintained despite rising market pressures. City allocations, however generous, are not the full equation of school funding in any MA District, and due to the lower allocation from state monies to Newton, we make up those funds in other ways. Demonstrated Fiscal Discipline: $4.0M+ in Validated Reductions The FY27 request is the result of exhaustive due diligence. NPS has consistently implemented long-term efficiency efforts and policy modernizations to ensure the district remains a lean, high- performing organization before asking for additional investment. Efficiency Milestones (FY24–FY27) ● Post-Override Reductions (FY24): Executed $1.2M in total operational reductions following the failed override, including a role optimization of 5.50 FTE (Assistant Principals, Literacy specialists, and IT staff) and smart procurement cuts in software and athletics. ● Data-Driven "Right-Sizing": Adhering to a strict 1:30 ratio of staff reductions to enrollment decline. ○ FY26: Net reduction of 10 Elementary Teachers (813k) and 2 Middle School Teachers (162k). ○ FY27 Projection: Reduction of 5 Elementary Teachers ○ Policy Modernization: Phasing out non-contractual Medicare Part B premium reimbursements for retirees, yielding $1.5M in annual recurring savings starting in FY26. ● Internal Innovation: Implementation of the Williams Reflection Classroom, generating $217k in annual recurring savings.
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Through these measures and strengthened fee collections, NPS is on a path of "Strategic Savings & Revenue Generation" projected to reach a cumulative value of over $3.3M by FY30 . While these internal efficiencies are significant, they have been necessitated by historical funding gaps that have now reached a critical threshold. Performance Benchmarking: Efficiency and Competitive Positioning NPS utilizes peer district comparisons—demographically and economically aligned—to validate our fiscal health. The data indicates that Newton is delivering top-tier academic results with mid- tier funding, operating at a significantly lower growth rate than its peers.
The Resource Gap and the COVID Relief Differential While peers accelerated investment post-COVID, Newton’s growth remained conservative. Between FY19 and FY24, Newton’s Total Budget CAGR was 3.8% , compared to the peer average of 5.93%. Even when viewed by Per Student Budget CAGR, Newton’s 6.0% growth lags the 6.27% average of high-spending peers.
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This "Resource Gap" was exacerbated by a strategic mismatch in COVID relief spending. While peer districts utilized ARPA/COVID funds for academic intervention and mental health recovery, Newton’s funds were largely directed by the City toward vaccine bonuses and HVAC maintenance. This decision deferred the essential costs of student recovery into the current operating budget, creating the intense financial pressure we face in the FY27 cycle. The FY27 Recommendation: A Sustainable Path to Level Service Prior to the 2027 budget season, the Superintendent evaluated five budget models ranging from "Cuts & Reductions” full "Thrive Budget.” Recognizing the constraints of City finances, the Superintendent bypassed the 8-9% models to propose a sustainable Net City Request of $317.3M (6.7% increase) . This request addresses current needs, and the additions of Day Reflections and Bridge special education program expansions dictated by current resident needs. Critical Budget Drivers and Uncontrollable Costs The primary economic pressures of the FY27 cycle are driven by contractual obligations and escalating benefit costs that outpace standard inflation.
Benefits Growth Analysis Benefit Type
FY26
FY27
% Increase
Health Insurance
$43,155,275
$47,406,801
9.9%
Medicare Payroll Tax
$3,015,254
$3,184,440
5.6%
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Benefit Type
FY26
FY27
% Increase
Total Benefits
$47,849,220
$52,259,009
9.2%
Non-Personnel Expense Trends Historically, NPS managed non-personnel growth at a modest 3.0% (FY19–FY26). However, specific categories are now rising rapidly: ● Contract Services (30.3%) - Highest increase mainly due to substitutes ● Tuition (18.5%) : More students coupled with increased rates and student needs ● Utilities (15.4%) : Driven by higher delivery and supply rates as well as additional consumption due to larger school campuses and universal air conditioning requirements. Conclusion: The Stakes of FY27 The Superintendent’s recommendation of a 6.7% increase represents the absolute minimum required to preserve Newton’s academic standing and implement expected new programs long desired by the district. This proposal balances the reality of City finances with the non- negotiable mission of providing a rigorous learning environment where every student is known, challenged, and supported.
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Organizational Section
The Organizational Section of the budget is designed to provide the reader an overview of the structure of Newton Public Schools as well as our vision and guiding principles. This section will review Newton Public Schools governance, organizational structure, partnerships, vision statement, strategic plan, account structure and budget process.
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City Of Newton
History and Profile
The City of Newton was settled in 1639 and incorporated as a city in 1873. The city is approximately 8 miles west of downtown Boston and comprises a patchwork of thirteen villages. The city borders Boston to the northeast and southeast (via the neighborhoods of Brighton and West Roxbury), Brookline to the east, Watertown and Waltham to the north, and Weston, Wellesley, and Needham to the west. A 2025 population estimate reveals a population of 88,978 for the city and occupies a land area of 18.15 square miles. The city is principally suburban-residential in character and consists of 13 distinct villages – Auburndale; Chestnut Hill; Newton Centre; Newton Corner; Newton Highlands; Newton Lower Falls; Newton Upper Falls; Newtonville; Nonantum; Oak Hill; Thompsonville; Waban; and West Newton. Open space comprises 18.4% of the City’s total land area, of which 49% is publicly owned. Newton has a diversified economic base with approximately 46,300 individuals employed in over 4,000 establishments within the boundaries of the city, with an estimated annual payroll more than $6 billion. Businesses are generally small and service-oriented with professional, business, education, and health services accounting for over 60% of all jobs. Commercial uses occupy 4.5% of the City’s land area. Over 34% of commercial land parcels are office uses; 12% are small retail uses; and 5% are storage or warehouse uses. Only 0.6% of the City’s land area is industrial. Newton is a desirable community to live and work in due to its proximity to Boston; an excellent public school system; multiple transportation systems; attractive neighborhoods; high property values; and well managed local government. Newton has an award-winning public library and a city museum that was a stop on the Underground
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Railroad. The city currently maintains an Aaa credit rating with both Moody’s Investor Service and S&P. The city provides a complete range of municipal services including education, public safety, public works, recreation, library, cultural and health and human services. The Massachusetts Water Resources Authority provides public water supply and sewerage treatment services.
School Department: Newton Public Schools
Legal Autonomy Newton Public Schools is a department of the City of Newton. Since it is not an independent entity, the district does not have the authority to levy taxes, issue bonds or incur debt. In addition, surplus funds in the general fund account on June 30th are returned to the City and may not be held by the school district as a positive fund balance. Overview The Newton Public School District comprises one (1) integrated preschool, fifteen (15) elementary schools, four (4) middle schools, two (2) high schools, two (2) alternative high school programs and students in out-of-district special education schools. In Newton, students in kindergarten through grade 5 are in elementary schools; grades 6 through 8 are in middle schools; and grades 9 through 12 are in high schools. Resident elementary, middle, and high school students are assigned to their neighborhood schools. As of October 30, 2025, the enrollment at the schools is listed below.
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Newton Early Childhood Program (Preschool) 161 Angier Elementary 381 Bowen Elementary 336 Burr Elementary 336 Cabot Elementary 378 Countryside Elementary 368 Franklin Elementary 299 Horace Mann Elementary 342 Lincoln-Eliot Elementary 355 Mason-Rice Elementary 310 Memorial-Spaulding Elementary 356 Peirce Elementary 245 Underwood Elementary 251 Ward Elementary 202 Williams Elementary 198 Zervas Elementary 389 Bigelow Middle School 462 Brown Middle School 698 Day Middle School 830 Oak Hill Middle School 654 Newton North High School 2080 Newton South High School 1865 Subtotal Enrollment 11,496 Alternative High School Out of District Placements 107 Total Newton Public Schools Enrollment 11,603
In 1966, as one of the seven founding districts, Newton Public Schools joined the Metropolitan Council for Educational Opportunity (METCO) program. This is a state-funded educational program designed to eliminate racial imbalance through the busing of children from Boston and Springfield to public systems in surrounding suburban metropolitan communities. The Program is open to all children of African American, Latino, Asian and Native American descent who reside in the City of Boston and volunteer to participate. Newton's METCO program is the largest, maintaining a targeted enrollment of 431 students (3.4%) in grades K-12. Elementary Attendance Zones Newton Public Schools are organized around a neighborhood school model in which students attend elementary schools that service specific geographic areas of the city. Among the primary considerations that govern the establishment of a school attendance zone include a desire to maintain established neighborhoods, enrollment trends, travel distance, natural boundaries, safe walking routes, traffic patterns, and school capacity. Elementary students attend the school in the attendance zone in which they live unless they are participating in a program outside of their home school; are approved for the elementary transfer
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option outside of their attendance zone; or are reassigned to another school due to a grade level closure.
The elementary school districts map is shown below.
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The middle school districts map is shown above.
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The high school districts map is shown above.
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Newton Public Schools District Leadership The Newton School Committee is a legislative body comprised of 9 members ( including the mayor) every 2 years, each representing a ward in Newton. School Committee members have a four-term limit or 8 years. The mayor, who also sits on the School Committee, is elected every four years. Each member is paid a stipend of $7,750 each year. The school committee derives their authority from the Constitution of Massachusetts, from statutes, and from the regulations of the State Board of Education. The School Committee operates in accordance with the MGL Ch. 71 and 41, which delegate its authority. As a result, the School Committee has the power to select and to terminate the Superintendent; review and approve budgets for public education in the district and establish educational goals and policies for the schools in the district, consistent with the requirements of law and state-wide goals and standards established by the Board of Education
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Newton Public Schools Thrive 2030 Strategic Plan
The Newton Public Schools Thrive 2030 Strategic Plan is the district’s five-year roadmap for ensuring that every student is known, supported, challenged, and prepared to thrive in school and beyond. It gives the community a clear sense of where the district is headed and how budget decisions connect to that direction. The plan is grounded in a simple idea: our values guide the budget, and the strategic plan turns those values into action. At the center of Thrive 2030 is Newton’s commitment to educating the whole child. The plan is guided by the district’s Portrait of a Learner competencies, including adaptability, empathy, and a learner’s mindset, and it organizes the district’s work into four major focus areas. 1. Learning and Well-Being Newton Public Schools is working to ensure that every classroom is academically strong, emotionally safe, inclusive, and responsive to student needs. This includes aligned curriculum, common assessments, strong teaching, and effective support for students through a districtwide Multi-Tiered System of Support (MTSS). The goal is for all students to experience belonging, make academic progress, and receive the right support at the right time. 2. Community Engagement The district is strengthening communication with families and building deeper partnerships across the city. This includes clearer communication standards, inclusive family outreach, support through the Welcome Center and Family Academy, and stronger connections with alumni, local organizations, and community partners. The goal is for families and residents to feel informed, welcomed, and invested in Newton Public Schools. 3. Financial Resources, Facilities, and Technology This focus area is about making sure the district’s resources match its priorities. That means aligning budgets to the strategic plan, modernizing technology, improving school facilities and accessibility, strengthening long-range financial planning, and pursuing grants and partnerships to support innovation. In other words, the budget is not just about maintaining operations; it is about investing in the conditions that help students learn and thrive. 4. Human Resources Great schools depend on great people. Thrive 2030 includes a strong focus on recruiting, developing, and retaining excellent staff. The district prioritizes leadership development, professional growth, staff well-being, and equitable hiring and retention practices so that Newton students are served by a highly skilled and diverse workforce. Taken together, these focus areas help explain the “why” behind the budget. The budget funds the people, programs, systems, and supports that move the district’s strategic priorities forward. Thrive 2030 is the district’s effort to move from year-to-year decision-making toward a more coherent, transparent, and long-term approach—one that keeps student success, equity, and community trust at the center.
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District Wide Goals Each year, the district identifies goals for the school year. These goals are developed by the superintendent and reviewed by the School Committee. Below you will find the 2024-25 District Wide Goals approved by the School Committee.
1. Goal 1: Foster Supportive and Joyful Learning Environments
Desired Outcome: Create a welcoming and inclusive learning environment where all students and staff feel valued, connected, nourished, and prepared to learn. Key Strategic Objectives: • Enhance instructional practice, multi-tiered systems of support (MTSS) and student intervention plans to support student mental health and wellness, the Newton Portrait of a Graduate, and social-emotional learning competencies. • Address student chronic absenteeism within the district in accordance with soon-to-be released DESE guidance. • Strengthen student connection to school and district culture.
2. Goal 2: Provide Culturally Responsive, High Quality, Rigorous Instruction for All
Desired Outcome: Ensure all students engage in grade-level work that is culturally relevant, real- world connected, interactive, and guided by high expectations. Key Strategic Objectives: • Using the 5-D expectations for student engagement, reduce gaps in opportunity for all students and accelerate learning for all students by developing vision and shared understanding of high expectations/high support for teacher pedagogy, assessment, curriculum use and data analysis. • Build the capacity and alignment of instructional leaders to provide effective and aligned instructional leadership, including specific and targeted feedback to support teacher growth. • Implement educator/employee evaluation training, vision and accountability related to teaching and learning.
3. Goal 3: Ensure Equitable Access to Effective Educators
Desired Outcome: Develop and maintain a diverse, culturally responsive, well-prepared educator workforce committed to continuous improvement. Key Strategic Objectives: • Focus on unified teacher evaluation training, procedures, reports, analysis and documentation PK-22 by all educators, schools, programs, and departments.
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• Track and report teacher attendance trends to principals and central staff in anticipation of DESE teacher attendance reporting expectations. • Develop coordinated methods for reduction of staff absenteeism at all schools and in all educator units in partnership with the NTA.
4. Goal 4: Optimize District Planning, Technical and Business/Financial Operations
Desired Outcome: Develop strategic, financial, operational, and data models that support the school district within the City of Newton's municipal processes and ecosystem. Key Strategic Objectives: • Execute a district Portrait of a Graduate process to guide decision-making and funding use. • Execute a district strategic planning report to guide district goals and spending for the next five years. • Evaluate the success of Chartwells (our new food service vendor) and enhance culturally responsive and healthy food service options, sustainability practices, and growth in our participation of meals served.
More details about the 2024-25 District Wide Goals approved by the School Committee is linked.
Policies and Regulations that govern the budget process. The following are excerpts taken from the Newton School Committee Online Policy Manual regarding the Newton Public Schools Budget: 1. Section DB ANNUAL BUDGET The annual budget is the financial expression of the educational program of the district, and it reflects the goals and objectives of the School Committee to meet the needs of all students. The budget then is more than just a financial instrument and requires on the part of the Committee, the staff, and the community an orderly and cooperative effort to ensure sound fiscal practices for achieving the educational goals and objectives of the school system. Public school budgeting is regulated and controlled by legislation, state regulations, and local School Committee requirements. The operating budget for the district will be prepared and presented in line with state policy and will be developed and refined in accordance with these same requirements. The Superintendent will serve as budget officer but may delegate portions of this responsibility to members of his/her staff, as deemed appropriate. The three general areas of responsibility for the Superintendent as budget officer will be budget preparation, budget presentation, and budget administration. 2. Section DBB - FISCAL YEAR The fiscal year is defined as beginning on the first day of July and ending on the 30th day of June following. The district is not permitted to honor any warrant that is in excess of the income
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and revenue of the district for the school year beginning on the first day of July and ending on the 30th day of June following. 3. Section DBC - BUDGET DEADLINES AND SCHEDULES Preparation of the annual budget will be scheduled in stages throughout the school year with attention to certain deadlines established by law and charter. The calendar year for budget preparation will be determined by calculating backwards from the final adoption date. Whatever dates are assigned, the final date for the submission of the budget to the City Council will be arranged cooperatively with the School Committee and Chief Financial Officer. The City Council has authority to impose a date as early as December 31. In reaching its decision on the budget amount that it will submit to the City Council, the School Committee will also observe the statutory requirement of holding a public hearing on the proposed budget not less than seven days after the notice for this hearing has been published in local media. 4. Section DBD - BUDGET PLANNING The first priority in the development of an annual budget will be the educational welfare of the students in our schools. However, the School Committee will also attempt to balance the valid interest of the taxpayers. Budget decisions reflect the attitude and philosophy of those charged with the responsibility for educational decision-making. Therefore, a sound budget development process must be established to ensure that the annual operating budget accurately reflects this school system's goals and objectives. In the budget planning process for the school system, the School Committee will strive to: a. Engage in thorough advance planning, with staff and community involvement, to develop budgets and guide expenditures in a manner that will achieve the greatest educational returns and contributions to the educational program in relation to dollars expended. b. Establish levels of funding that will provide high quality education for all our students. c. Use the best available techniques for budget development and management. d. The Superintendent will have overall responsibility for budget preparation, including the construction of, and adherence to, a budget calendar. 5. Section DBG - BUDGET ADOPTION PROCEDURES The School Committee shall, after a public hearing, vote on a final budget amount to be presented to the City Council. The mayor has the authority, by law, to increase or decrease the appropriation but not the individual amounts that comprise each line item. The Council has the right, by law, to decrease the amount of the total appropriation but not the individual amounts that comprise each line item. Should the appropriation differ, the School Committee shall review line items so that the total coincides.
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Basis of Accounting Newton Public Schools utilizes a modified accrual method of accounting. Modified accrual accounting recognizes revenues when they become available and measurable. Measurable means that the amount can be reasonably estimated. Available means that the revenues collected during the current year or soon thereafter are accessible to pay current liabilities. Expenditures are recorded when the liabilities are incurred. An encumbrance is a commitment of funds for contracts not yet performed or goods not yet received. An encumbrance is created when a contract is signed, or a purchase order is issued. At year end, the purchase order is recorded as a reservation to fund balance. Although not considered to be Generally Accepted Accounting Procedures (GAAP) expenditures, encumbrances are treated as expenditures on a budgetary basis of accounting (MA DESE EOYR Reporting Instructions). Newton Public School Fund Types By state statute and city charter, the Newton Public Schools is organized as a department of the City of Newton. Because it is not an independent entity, the district has no legal authority to levy taxes, issue bonds, or incur debt. For this reason, the district receives most of its revenue through the City’s general fund. Also, the district must follow the City’s budget administration and fiscal management policies.
Newton utilizes fund accounting as a means of organizing the financial records into multiple, segregated locations. A fund is a distinct entity within the municipal government in which financial resources and activity (assets, liabilities, fund balances, revenues, and expenditures) are accounted for independently in accordance with specific regulations, restrictions, or limitations. The City of Newton has several funds to track financial activity and include the following: ● The General Fund is the City’s main operating fund and is used to account for all activity which is not required to be accounted for in a separate fund. Fund expenditures are governed by annual appropriations, recommended by the mayor, and approved by majority vote of the City Council.
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General Fund revenue is derived from three sources: local property taxes, state and federal assistance, mainly in the form of education aid (Chapter 70), and local revenue. The Chapter 70 program is the major program of state aid to public elementary and secondary schools. In addition to providing state aid to support school operations, it also establishes minimum spending requirements for each school district and minimum requirements for each municipality's share of school costs . In Newton, Chapter 70 funds account for $28,656,534 or approximately 10% of the total FY25 school budget. Local property taxes are our primary funding source and accounted for $424.3 million or 81% of the total general fund revenue in FY24. With the reliance of local property taxes, the School Committee and School Administration are mindful in developing a budget that is fiscally responsible as indicated by the annual Budget Guidelines. The expenses charged to the General Fund are the core educational costs including administrator, teacher, and staff salaries; instructional materials; textbooks and library materials; special education; math and literacy support; transportation; and professional development. ● Special Revenue Funds are used to account for operating revenues that are legally restricted for expenditure for purposes specified in a grant / gift agreement; or in federal, state, or local law. Examples include the Community Preservation Funds, Water, Sewer and Stormwater Funds. Within the classification of Special Revenue Funds are revolving, grants, and gift funds which the Newton Public Schools track and monitor these separate and unique funds. ● Grant Funds are awarded in one of five methods: entitlement, allocation, continuation, other non-competitive and competitive processes and must be used for their stated purpose. There are three main sources of grant funds: Federal, State and Private. Examples of these funds include: ○ Federal: Title I, Title IIA, Title III, Title IV, Individuals with Disabilities Education Act (IDEA) ○ State: Metropolitan Council for Educational Opportunity (METCO), Circuit Breaker ○ Private: Newton Schools Foundation (NSF) ● Revolving Funds allow the district to operate programs or activities that generate fees, charges, or other receipts to support all or some of the expenses of those programs or activities. These revenues are used, without further appropriation, to support the service. There are several revolving funds including, but not limited to: ○ Food Services (sales and costs associated with providing healthy, nutritious meals for students) ○ Athletics (athletic fees and gate receipts used to offset the cost of the athletic program)
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○ Use of School Building Facility Rental (revenue and expenses related to the rental of school buildings) ○ Pre-School (typically developing student tuition fees used to offset their program costs) ○ Transportation (revenue and expenses related to providing non-mandated transportation to students) ○ Elementary Early Morning Program (revenue and expenses related to providing by parents the opportunity to bring their children to school prior to the beginning of the regularly scheduled school day.) ● Capital Improvement Plan (CIP) Funds are used to account for proceeds from the issuance of long-term debt or direct outlay for capital or fixed asset improvement and for expenditure of these funds and any other financing sources that the City has appropriated for capital improvement purposes. The CIP encompasses all City capital assets which fall into the following eight categories: Buildings, Roads, Sewer Infrastructure, Water Infrastructure, Storm Drainage Infrastructure, Parks and Playgrounds, Motorized Vehicles and Equipment, and Information Technology. As mentioned earlier, the school district has no legal authority to issue bonds. All capital projects are part of the City’s Capital Improvement Plan. More information can be found on the Capital Improvement Plan | City of Newton, MA ● Internal Service Funds are used to account for self-insurance activities of the City. Examples include the Group Health Insurance Fund and Workers Compensation Fund. ● Trust and Agency Funds are used to account for assets held by the City in either a trust or custodial nature. Examples include the Rainy-Day Stabilization Fund, the NPS Education Stabilization Fund, Student Activity Funds, and the Other Post Employment Benefit (OPEB) Fund. Classification of Revenues and Expenditures Newton Public Schools classification of revenue adheres to the requirement of the Massachusetts Department of Elementary and Secondary Education (MA DESE). Revenues are tracked by funding sources through separate funds. Revenues are classified as: • State Aid (Chapter 70, Circuit Breaker, Charter Tuition, and Massachusetts School Building Assistance –MSBA) • Federal Grants (Massachusetts Department of Elementary and Secondary Education and Other) • State Grants (Massachusetts Department of Elementary and Secondary Education and Other) • Private Grants • Revolving and Special Funds (School Lunch, Athletics, Pre-School, etc.)
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Fund Balance Restrictions The Massachusetts Department of Revenue, Division of Local Services (DLS), in collaboration with the Massachusetts Department of Elementary and Secondary Education (MA DESE) issues guidance to school districts on revolving fund accounts. Revolving funds allow a district to carry fund balances from one fiscal year to the next for certain programs. The only restrictions on funds carried by Newton are as follows: Circuit Breaker State Reimbursement Grant: Circuit Breaker is the state’s special education reimbursement grant program to offset high-cost special education student placement, services, and transportation. These funds can be carried for one fiscal year following receipt. In Newton, revenue received in fiscal year 2026 is expended in fiscal year 2026. When possible, revenue collected in one fiscal year is carried forward into the next fiscal year. Below is a brief history of the annual receipts, and carryforward:
The table below lays out NPS’ Circuit Breaker Revenue and Expense History: FY20 FY21 FY22 FY23 FY24 FY25
FY26
Revenue
$5,644,171 $5,150,831 $6,114,167 $6,562,409 $6,670,136 $7,430,898 $9,134,423
Expense
$1,257,981 $1,658,977 $2,056,878 $3,013,892 $1,641,975 $4,667,423 $8,884,423
Carry- forward
$4,386,190 $3,491,584 $4,057,288 $3,548,517 $5,028,161 $3,350,000 $2,500,000
The FY’26 Adjusted Budget is based on the reimbursement rate of 75% for instructional costs and 61% for transportation costs. State Guidance on Circuit Breaker Fund Balance. Since MA DESE regulations allow school districts to carry forward up to one year's worth of state reimbursement, the Massachusetts Department of Revenue, Division of Local Services (DLS) advises communities build balances in their Special Education Circuit Breaker accounts in years when actual costs compare favorably with the budget so that in years when special education costs increase unexpectedly or the circuit breaker reimbursement drops, there will be some circuit breaker revenue to cover any unforeseen costs. Building a circuit breaker balance is good management practice as it eliminates some of the risks associated with these unpredictable special education costs. National School Lunch Program (NSLP) Revolving Fund: The Massachusetts Department of Elementary and Secondary Education (MA DESE) recommends maintaining a fund balance in the Food Service Revolving Fund equal to three months of operating expenses. Newton has been able to retain a higher fund balance that has been used to invest in much-needed equipment repair and replacement as well as increased staffing to meet USDA program requirements.
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Earned Interest: All interest earned is considered General Fund revenue unless there is a law or statute stating otherwise. For example, CPA, Water, Sewer, Storm, the Health fund, and some trusts are allowed to keep their own interest. For the school department specifically, the Food Service Revolving Fund, Education Stabilization Fund, and Student Activity Funds, the interest is able to be retained within the fund as well. All other earned interest is deposited to the City's general fund and not maintained by the separate funds. Expenses Incurred: Only expenses related to the fund’s purpose can be charged to the fund. For instance, revenue received from Athletics cannot be used to fund textbook replacements. Since the fund balance is not a recurring revenue source, the district is cautious about charging recurring expenses against fund balances. Budget Administration and Management Process Newton Public Schools and the City of Newton utilize the MUNIS financial system, a fully. integrated accounting and human resource system. Decentralization of MUNIS provides each. school budget manager and their support staff access to real-time budget information and on- line requisition entry. Financial Reporting: The Assistant Superintendent for Finance and the Business, Finance and Planning team reviews all funds monthly with the appropriate budget managers and Superintendent. Fiscal and Operations reports are typically submitted to the School Committee and Superintendent quarterly. Budget Flexibility and Transfers: In keeping with the need for periodic reconciliation of the district's budget, the School Committee will review transfers of funds as they are recommended by the Superintendent and Assistant Superintendent of Finance. The quarterly financial report has two columns including the School Committee budget approved in May, and an adjusted budget which includes budget transfers made throughout the year to reflect actual salary and benefits costs. All funds in the general account not expended by the close of the fiscal year will be returned to the municipality except as allowed by law. Turnover / Turnback – What is the Difference? At the end of the fiscal year (June 30th), Massachusetts General Law (MGL) requires all uncommitted General Fund balances to be returned to the City of Newton. We refer to this as “turnback.” All year-end balances in the General Fund are returned to the City of Newton. Typically, Newton Public Schools returns under $1,000 back to the City of Newton from the general fund.
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Each year Newton Public Schools experience staff turnover. Turnover can be a result of retirements, resignations, terminations, etc. The retirement of a tenured teacher can result in savings of $50,000. Although the number of retirements and resignations vary year-to-year, the district uses history to inform current projections. A negative account is budgeted annually, which represents the total expected savings from the various staff turnovers in the upcoming year. The district monitors the cost differential generated from staff turnover and expects to meet or exceed the budgeted savings. Annual Audits: The district’s largest grant fund is typically audited as part of the City’s Single Audit. In addition, the City’s current audit firm, CliftonLarsonAllen, also audits the school’s MA DESE End-of-Year Financial report. Lastly, the City’s audit firm will typically review one area within Newton Public Schools as a special project and provide recommendations for improvements. In the past, we have reviewed the Athletics revolving account, the Preschool program, and Newton Community Education. Currently, we are auditing the School Lunch program and the Special Education Medicaid Reimbursement Program. We provide a Management Response for any findings/recommendations of the Auditor's report with our improvement plan.
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Local Revenue Sources As a municipal school district, the main source of revenue for the operation of the Newton Public Schools is local property taxes and other municipal revenues. The other revenue sources include state education aid, commonly referred to as Chapter 70; fees and tuition collections applied as offsets to the general fund; and grant awards including donations. Chapter 70, or state education aid, funds are dependent on the state funding formula and the state’s General Appropriations Act (GAA). Below is a summary of revenue sources to support the Newton Public Schools on an annual basis (FY’24 Data):
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Budget Guidelines
Background It is an exciting time in Newton Public Schools. Superintendent Anna Nolin's well received entry plan has recently been refined through a strategic planning process. From that effort, the district now has a clear vision, mission statement, and core values – all of which provide a foundation for a detailed Strategic Plan for the district. And many of those initiatives are well underway, positioning the district for positive change and the ability to meet our new mission, to be “…an inclusive learning community that empowers all students to thrive as they embrace challenges and shape their futures with confidence, curiosity and joy.” The objective of this budget guideline document is to confirm the School Committee’s priorities that should shape the Superintendent’s proposed budget (and not line-item mandates). These guidelines are intended to provide a shared framework for evaluating budgetary proposals and seek to preserve strong alignment between the budget and the district’s Strategic Plan. Finally, the Committee also acknowledges that, entering into this FY2027 budget season, there are financial challenges that must be overcome in partnership with our colleagues in City leadership. In particular, the resolution of last year’s budget impasse created a budgetary gap that must be addressed. Meanwhile, many of the cost drivers that are not in the administration’s direct control (e.g., health insurance, transportation, Kindergarten aides) put pressure on efforts to moderate budgetary growth rates. Budget structure Because of these anticipated cost pressures this year, as we work to both a) fulfill the budget priorities and support the Strategic Plan, and b) ensure the school budget is as efficient as possible, we request that the budget be articulated in two key components: 1. Level Service: Identify the level of funding needed to maintain equivalent services, which should i) accommodate higher than desired cost increases (e.g., health insurance, transportation), ii) identify ongoing opportunities for greater efficiency, and iii) ensure that staffing levels and resources match enrollment and evolving student needs 2. Strategic Roadmap: Identify and propose a multi-year plan to responsibly layer in additional strategic investments above “level service” that are required to meet the key objectives in the strategic plan over time. The roadmap should include an FY2027 proposal for additional investment to be included in the proposed budget (e.g., resources that enable the new math pathways and curriculum to be rolled out successfully) Key priorities The priorities below articulate highlighted areas that the School Committee seeks to see the budget accommodate and enable in the coming fiscal year. They are not intended as prescriptive directives, but as a framework for ensuring that resource allocation supports high- quality instruction, student well-being, and the district’s long-term educational mission. They are listed in priority order, based on ratings from the committee. 1. Multi-Tier Systems of Support (MTSS): Building a coherent, districtwide framework for academic and behavioral support in general education that uses data to provide timely, tiered interventions
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2. Curriculum modernization: Ensuring teachers have high-quality, evidence-based instructional materials, vetted by a curriculum review process on a 5-year cycle, with district alignment, so every student receives appropriate challenge and support 3. Breadth and quality of educational programming: Protecting the rich academic, arts, STEM, extracurricular, and CTE offerings that define NPS 4. Student services: Continuing to maintain and enhance the district's strong special education and related student services, with an emphasis on appropriate staffing, high-quality programming, and meeting the needs of diverse learners 5. Class size management: Maintaining manageable class sizes and sufficient staffing to meet students’ diverse academic and social-emotional needs 6. Achievement gaps: Reducing disparities in outcomes across student groups and ensuring equitable opportunities 7. Professional development: Investing in ongoing, high-quality professional learning that supports our amazing educators 8. Mental health and social-emotional support: Ensuring resources and practices are available to ensure students are emotionally well and ready to learn 9. Community engagement: Strengthening communication, trust, and collaboration among families, students, and educators 10. Infrastructure (facilities and technology): Maintaining safe, functional, and equitable school facilities; ensuring reliable, modern technology infrastructure Together, these priorities describe what the School Committee seeks to enable through the FY2027 budget. They provide a framework for balancing educational excellence, student well- being, and fiscal responsibility as the Superintendent develops the proposed budget. The Committee will look to these priorities when evaluating how well the budget advances the district’s strategic goals. NPS Budget Development Process: A Collaborative Process The annual budget is the financial expression of the educational program of the district, and it reflects the goals and objectives of the School District to meet the needs of all students. The process of developing the FY26 budget is complex and involves the following: • Critical for planning the FY26 budget was the successful contract agreement with our largest bargaining unit, the Newton Teachers Association. The custodial and administrative contracts have also been settled. • Managing and forecasting the FY25 budget and in addition to Multi-Year Forecasting to assess the financial risk and challenges that are ahead. • Assessing the impact of the FY25 budget on FY26 budget planning and any carryforward assumptions needed. • Projection of budget areas to match commitments, cost trends, and multi-year impact of school spending. • A deep entry plan listening tour of district needs as part of the new superintendent entry
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