Despite steep federal education cuts this year, Swampscott Public Schools expect to finish the year with a small surplus, according to a first-quarter budget update presented at the October 23 School Committee meeting.

Each year, the federal government provides states with essential kindergarten through twelfth grade education funding to support students and their academic success. Superintendent Jason Calichman previously announced in September that the schools are facing “significant reductions” in Title grant funding this year. Assistant Superintendent of Finance and Operations Cheryl Herrick-Stella said at the October 23 meeting that the district successfully absorbed a $100,000 loss in Title I funding by tightening staffing costs and replacing departing administrators with new hires at lower salary levels.

“I’m very pleased to present this first-quarter projection,” Herrick-Stella said. “We will have a small surplus. So, we’ve been able to within the budget absorb that $100,000 loss and potentially end the year with a minimal surplus.”

This year, Title I funding, which supports low-income students, dropped 52%, from $209,718 to $100,676. Title II and Title III, which support teacher development and English-language learners, fell 6% and 13% respectively. Title IV did see a small increase. Overall, the district experienced a 39% reduction in federal funding under the Every Student Succeeds Act (ESSA).

Even so, Herrick-Stella said local budget discipline helped avoid program cuts.

“We are seeing some salary savings within the administration cost center due to the hiring of some new administrators,” she said. “As we had departures throughout the summer, we were able to bring people in at lower rates, which is really helping us to be able to absorb the Title I funding loss.”

School Committee Member Suzanne Wright said the improved outlook was a welcome change.

“It feels good to be on solid ground right here and not be looking for money yet,” Wright said.

Electricity costs drive budget overruns

While the district’s overall position is stable, rising utility expenses have seemingly become the largest challenge. 

Herrick-Stella reported that the school facilities cost center is projected to end the year $195,638 over budget, primarily due to electricity costs at the new Swampscott Elementary School, which are expected to reach $300,000 this year.

“School facilities are right now projected to end the year over budget by almost $200,000,” Herrick-Stella said.  “The major driver of that is the electricity cost at Swampscott Elementary School. As of right now, our projection is that number will be $300,000. As you know, the town appropriated $200,000 in free cash to cover that bill.”

According to the district’s written first-quarter budget report, the general education cost center and facilities are both projected to finish over budget, at $466,418 and $195,638 over respectively.

However, long-term relief may come from the district’s investments in renewable energy. When the district opened the new elementary school at 10 Whitman Road, the design included infrastructure for a photovoltaic (PV) solar panel system, featuring both rooftop panels and a ground-mounted canopy. The school now also includes more than 80 geothermal wells for heating and cooling.

“Even once we get it all installed, it takes some time to actually get online with National Grid and Verizon,” Herrick-Stella said. “The really rough estimate of when the rooftop solar will be online is February.”

Facilities Director Max Kasper said installation is nearly complete and that full activation could happen by early spring.

“There’s panels on the roof right now, the gym roof is entirely covered,” he said. “Within about two or three weeks there’ll be panels basically covering the entire roof, and then wiring and final connections waiting on National Grid, which we hope for in February, we really want to have it online for March.”

The town received about $2.3 million in federal reimbursement for the geothermal system through the Inflation Reduction Act. Kasper added that the construction firm Connelly will host educational sessions for students about the solar system and renewable energy.

Special education and staffing efficiencies

Herrick-Stella said the Special Education cost center remains $414,000 over budget, due partly to the town’s request to reduce the out-of-district tuition line by $200,000, assuming it would be covered by the reserve fund. However, staffing efficiencies at the new elementary school are beginning to offset some of those costs, she said.

“We are starting to see some efficiencies at the Swampscott Elementary School as it relates to staffing,” Herrick-Stella said. “We’re seeing a little bit of it this year and I think we’ll see maybe a little bit more next year.”