MONTAGUE — As the Gill-Montague Regional District School Committee prepares to finalize its budget for the next fiscal year, it faces an approximately $400,000 roadblock in the form of a current $200,000 budget deficit and a $200,000 revenue shortfall for next year.

The combined deficit comes from unexpected increases in costs and overspending by the district, combined with a lack of any surplus money, according to information provided to the committee.

A budget document presented by Business and Operations Director Joanne Blier states that the entire gap “will be closed with a combination of revenue and expenditure adjustments,” though the details are not ready to be shared. 

A FY25 financial report explains there is a deficit in special education out-of-district transportation, and foster transportation accounts, creating a $108,090 deficit in the Support Services line item. Circuit breaker account funds that have not been allocated may be used to partially offset the special education out-of-district transportation deficit.

“We’re still working on some of those things with the transportation and contracted services,” Blier said about what will be done to address the deficit.

Later in the meeting, Blier explained that “there’s not much of anywhere to go” to move money to cover the revenue deficit for FY26. Montague increased its affordable assessment by $51,091, which increased Gill’s assessment by $7,459, bringing in some extra revenue that helps close the gap. She doesn’t recommend the use of funds from the School Choice revolving or the excess and deficiency (E&D) accounts, noting that $500,000 is already coming from E&D as part of the FY26 budget, and there must be a surplus at the end of each year to continue to use this fund in the future.

Some savings to support next year’s budget are under review, including staffing changes, consolidating bus routes, a review of tuition and possible changes to health insurance costs through the Group Insurance Commission (GIC).

After Blier spoke about the FY25 and FY26 updates, members discussed the increasing cost of out-of-district transportation the district must fund for any student.

“Our responsibility is providing the appropriate education for every student,” School Committee Chair Janes Oakes said. “If that involves an outside placement, that’s what they need.”

Members questioned the feasibility of the district supplying its own transportation for out of district students. Oakes, Blier and member Carol Jacobs chimed in and said for out-of-district, there would need to be 10 to 15 vans, along with drivers that would require compensation for their work.

Oakes mentioned that this topic came up at the Montague Special Town Meeting on Feb. 12, where voters raised concerns for the cost of transporting a Montague student attending Smith Vocational and Agricultural High School in Northampton.

The vote approved the use of $20,547 from free cash to pay for part of the $33,047 needed to cover transportation and tuition costs for this student through the end of FY25, with the Montague Finance Committee covering $12,500 of that amount through the town’s reserve fund. 

The budget has been revised and balanced on previous occasions. On Jan. 28, the preliminary operating budget was unanimously approved by the School Committee at $24,915,303 — a reduction from a previously proposed $26.47 million budget, which included a $1.3 million deficit. Eight proposed staff positions were cut to help balance the budget, and it was announced that two to three unspecified current staff positions would be cut.

The next meeting for the committee is scheduled for March 11 where the final budget will be voted on. Approval requires a two-thirds majority vote. From there, the budget will head to Gill and Montague for their annual Town Meetings in May for voter approval.

Erin-Leigh Hoffman can be reached at ehoffman@recorder.com or 413-930-4231.