Finance Committee Questions Special Education Costs and School Salaries

At its May 7 meeting, the Finance Committee (FinCom) reviewed the Amherst elementary schools’ budget and raised several questions related to Amherst’s relatively high special education (SpEd) and payroll costs. In the proposed fiscal year 2022 (FY22), school budget spending on SpEd increases by about half-a-million dollars while regular education budget lines increase by about $200,000. 

Although the Charter states the FinCom “will thoroughly review the budget and make a presentation and recommendation to the full Town Council,” the committee does not typically weigh in on details of school budgets, deferring to the School Committee, and there was no indication at the May 7 meeting that FinCom would recommend any changes. 

“We want to understand the budget, but it is the School Committee’s budget that is being presented to us,” said FinCom Chair Andy Steinberg in his introduction. Councilor Mandi Jo Hanneke agreed. “We pass a bottom line budget for the School Committee,” she said. “How the School Committee decides to spend that is not something that we, as a Town Council, should get too far into the weeds of.” However, Hanneke did reference a clause in Massachusetts General Law that provides a way for the Council to increase the school budget, if an increase is requested by the School Committee.

In data presented by Superintendent Michael Morris, students with disabilities represent 22 percent of the elementary school population, however, spending on SpEd staff is almost the same as on regular education staff. The SpEd budget, proposed at $7.1 million for FY22, has increased almost 20 percent in the past five years, compared to a 5 percent increase in regular instruction in the same time period. Noting this difference, Councilor Cathy Schoen asked Morris what was driving the increase, and if the services offered by Amherst were “disproportionate” to what neighboring districts offer. She suggested that Amherst might be becoming a “magnet” for students with more intensive needs, and asked whether the Town should advocate at the state level for greater reimbursement of SpEd costs. “I’m worried it’s squeezing out the breadth of other programs you can offer because you have to live within this restricted budget,” she said.

Although overall student enrollment has declined, the district has seen an increase in students with more intensive needs, according to Morris, including more preschoolers with significant needs, some who require a nurse assistant. Morris said that the district’s specialized programs are appealing to families that prefer not to send their children out of the district to day programs, and with few neighboring districts offering such programs, Amherst is seen as a desirable community in that respect.

Addressing Schoen’s question about advocacy, Morris said the primary issue is with the federal government “wildly underfunding their commitment” under the Individuals with Disabilities Education Act (IDEA). IDEA was passed in the 1970s to provide a “free and appropriate public education” to students with disabilities. This means that the school district must provide students with the services and support they need, at no cost to their parents. According to the National Center for Learning Disabilities, however, the federal government is only covering 14.6 percent of the additional cost required to educate students with disabilities. These expenses add to the district’s total per-pupil cost, which is significantly higher than in some neighboring districts. 

Staffing Is Another Driver Of High Per Pupil Costs
Payroll increases of more than 2.5 percent  annually were a concern for Hanneke, who observed that this trend is inconsistent with the Town Manager’s guidance. Finance Director Doug Slaughter explained that, since 50-60 percent of school staff are not at the top of the pay scale, they are entitled to step increases each year in addition to a cost of living adjustment. This poses “an inherent conflict” in meeting the budget guidance, he said.  

At last year’s budget hearing, Morris explained that Amherst’s high per pupil cost is driven by two primary factors: the number of staff and the salary scale. “Our negotiated salaries are higher than other districts, and we have more staff than other districts,” he said. Benchmark data presented by Morris on May 7 showed a student/teacher ratio in Amherst of 9.1, an average teacher salary of $78,834, and per pupil cost of $23,091. In contrast, Northampton had a student/teacher ratio of 15, average teacher salary of $61,433, and per pupil cost of $14,505. Average class size and the percentage of students with disabilities were similar.

Councilors Lynn Griesemer and George Ryan shared Hanneke’s concerns about the cost of school staff salaries, both expressing a desire to have the Town Manager or designee be present at contract negotiations. School union contracts are up for renewal this summer. 

Although budgets are tight and cuts have been proposed, some relief may arrive in the form of proceeds from the federal American Rescue Plan Act, signed into law in March. To date, no estimates have been publicly-shared for how much money the Town and schools might receive, when the money might arrive, or whether use of the money will be tightly constrained or unrestricted. Steinberg wondered how this funding might play into the FY22 school budget and if it could be used to offset cuts. Schoen asked Town Manager Paul Bockelman whether proposed cuts to art and technology staffing could be restored if the Town learned it would be receiving funds from the Elementary and Secondary School Emergency Relief Fund in the next few weeks, before the budget is passed. Bockelman did not respond, but Slaughter said he thought it would be possible, if it had the support of the School Committee.