for its students. Our education stabilization fund was formed to help guard against this possibility for Newton, but given new, added financial pressures (not regarding educator contracts), the district again finds itself in a difficult financial position.
4. Reliance on circuit breaker carryforward and use of one-time funding
One of the more challenging aspects of the NPS budget over the last several years has been the reliance and use of one-time funding and Circuit Breaker carryforward funds to balance the budget. In FY25, the district is using $5,728,161 in one-time funding to balance its budget, including $700,000 in one-time health-insurance funding, mentioned above, and $5.03M in Circuit Breaker carryforward funds. All of this one-time funding effectively helps to lower our budget gaps in the year they are used, but when the funding does not recur, creates a budget gap in a future year. This structural deficit is not sustainable in the long term. Our FY26 budget is now built with a planned total of $6,832,845 in one-time spending that helps to balance the FY26 budget, but that the district will need to make up for in FY27. These one-time funds and the impacts they will have on the NPS budget are described in detail later in this book, but are also briefly detailed in the table below:
Breakdown of FY26 One-Time Funding Needed for NPS to Balance its Budget
Funding Amount
Short-Term Effect on the District (FY26)
Long-Term Effect on District (FY27 & Beyond)
Funding Description
One-Time Funding From City Needed to Balance FY26 Budget
Charter Maintenance (a.k.a. Public Building Repair & Maintenance)
Allows NPS to lower its Charter Maintenance budget from $3,817,000 to $2,524,000 Affects many departments & allows NPS to provide things such as cirriculum consummables, IT equipment, & PD Relieves budgetary pressure associated with health insurance rates increasing by 11.2%
NPS will need to make up this difference in order to continue to maintain its 23 school buildings NPS will need to make up this difference in order to continue providing these services for students & staff NPS will need to make up this difference and also increase this budget further to accommodate future annual rate increases
$1,293,000
Departmental Expenses $889,845
Health Insurance
$1,300,000
Total City One-Time Funding
$3,482,845
NPS Circuit Breaker Carryforward Funding Needed to Balance FY26 Budget
Creates financial risk in future years by assuming NPS will not fully expend its funds, especially given mounting budget pressures
Allows NPS to lower its amount budgeted for out-of-district tuitions in FY26
NPS Circuit Breaker Carryforward
$3,350,000
Total Circuit Breaker Carryforward
$3,350,000
GRAND TOTAL ALL ONE-TIME FUNDING
NPS will need to make up all these one-time funds in FY27
$6,832,845
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