Methuen, Massachusetts Faces $10 Million School Budget Shortfall

The city of Methuen, Massachusetts, is facing a school budget shortfall of approximately $9.6 million, leaving local officials struggling to find a way to maintain existing programs without making drastic cuts to the school system.

During a school committee hearing, officials discussed the financial strain on the district, with some committee members suggesting that the deficit is so severe it could lead to the closure of a school. School committee member Laurie Keegan, a mother of four children who attended Methuen Public Schools, questioned, Which school are we closing? Because that’s where we are at. We need that kind of money.

FY27 Budget Projections and Net School Spending

Detailed financial analysis of the proposed Fiscal Year 2027 budget reveals a complex gap between city funding and state requirements. The mayor’s proposed total budget for the school system is $113,976,970. However, this figure includes $11,855,430 in non-net spending, such as busing costs.

When these non-net expenses are removed, the true educational spend in the proposal is approximately $102,121,540. This creates a significant distance from the state’s required Net School Spending (NSS) of $124,723,584. The district’s foundation enrollment is listed at 6,553 students, with a required minimum city contribution of $52,046,906 and Chapter 70 state aid totaling $72,676,678.

To meet the NSS floor, the district relies on estimated chargebacks of $24,000,000. Even with these chargebacks, the budget clears the NSS floor by only $1,397,956, which is an overage of approximately 1.1 percent.

Drivers of the Financial Shortfall

The district is grappling with rising costs associated with transportation and special education. In one school committee meeting, members discussed a proposed $20 million budget increase for the upcoming fiscal year to address these specific needs. One member noted an explosion of special education cases, pointing out that students who enroll after October 1 do not receive state funding.

Concerns were also raised regarding the Chapter 70 funding formula. Some committee members argued the formula does not adequately serve gateway communities like Methuen. It was noted that Methuen has lost approximately $10 million due to inflationary pressures over recent years.

Impact on Staffing and Resources

The budget crisis has led to discussions regarding severe personnel cuts. An interim superintendent presented theoretical scenarios to the school committee to illustrate the scale of the gap. One such theory suggested that cutting 142 positions and increasing classroom sizes to 30 students per class would still leave a budget gap of more than $3 million.

Data from the Department of Elementary and Secondary Education (DESE) indicates that Methuen ranks 388th out of 395 districts in per-pupil administrative spending. The district currently employs zero instructional coaches.

Methuen Mayor D.J. Beauregard, a graduate of the school system and father of a first-grade student, described the current financial state of the budget as being at the bare bones.

We are not cutting from fat, we are cutting from bone at this point

Mayor D.J. Beauregard

Second-grade teacher Kate Capodagli expressed concern over the potential for further reductions, stating that such cuts will demolish our school system.

Regional Context

The financial challenges in Methuen are mirrored in other Massachusetts districts. In Lexington, 65 full-time positions were eliminated and 160 teachers received notices of nonrenewal. The city of Chelsea recently announced it would use cash reserves to address a school budget deficit exceeding $8 million.

In response to the funding gaps, Methuen school officials have called for increased community advocacy, urging parents and teachers to contact state officials to request more equitable funding distribution.