Swampscott Budget Concerns As Growth Plummets, Schools Warn Of Deficit

SWAMPSCOTT, MA — The Swampscott Select Board addressed several looming budget concerns as it heard public comment from School Committee members warning of pending deficits at the same time that new growth in the town plummeted year over year at Wednesday's meeting.

In a discussion about the future tax rate and the recommended use of free cash to offset tax bills and the cost of the new K-4 school, the Select Board tacitly agreed to support a proposal to spend down $1 million in free cash to offset the tax burden on residents as well as giving preliminary support to shifting the tax rate on residential to commercial property from 1.7:1 to 1.75:1.

The move comes as residential property values continued to rise substantially in the town, as commercial property values slowed — which will shift the tax burden toward homeowners — and so-called new growth dropped 70 percent year over year. The stalling new growth was explained as being a result of having relatively few new revenue sources coming online this past year.

While it could be a one-year blip given the construction at Elm Place and the former Glover House property expected to come online over the next few years, as well as the potential revitalization of Vinnin Square, the potential future pitfall once again highlights Swampscott's precarious position as a town with an aging population, rapidly escalating school needs for special education and minimal space for new construction or development.

"If we want new growth we have to think about how we're going to drive it," Swampscott Town Administrator Sean Fitzgerald said. "Because it's not going to happen without the town taking an increasingly stronger role in supporting economic development in places like Vinnin Square, Humphrey Street.

"We have to have a plan."

The 80-minute tax and budget discussion followed stark warnings and frustrations voiced by School Committee members earlier during public comment about funds the schools will need to offset rising special education costs both within the district and with out-of-district placements.

School Committee Chair Suzanne Wright addressed "unexpected expenses" putting pressure on the school budget in costs that outpace the financial guidelines of 2 percent plus new growth prescribed by the town administration each year.

She said new out-of-district special education placements this year, coupled with another jump in out-of-district tuition increases, put the schools "well over budget" for this year, which will roll into Fiscal 2025.

She said the approximate $875,000 in deficit will have to be covered in next year's budget, as well as staffing increases that were necessitated by student special education individualized education programs, which will cost about $200,000.

She said that the district was also recently informed of a potential "special assessment" from the collaborative that Swampscott students use for out-of-district placement that could run another $100,000.

She added that estimated operating expenses for the new school set to open in September are 9 percent higher than expected, with additional transportation costs at about $200,000.

"This is leaving our 2025 budget really well over the 2 percent plus new growth," she said. "I appreciate that a lot of conversations are happening within the district right now to look at efficiencies. The budget that's being built by our finance director is truly a zero-based (level services) budget. She is looking everywhere, with the administrative teams, to see where we can be more efficient with our financial resources while still adequately staffing for our students to give them the education that makes this such a great school district."

She said with class sizes already increased after reducing staffing by 25 full-time positions from the last year there are fewer efficiencies to pursue.

"Our deficit is well beyond what some reductions and reassignments and such can cover," she said.

School Committee members Glenn Pastor and Amy O'Connell also addressed the Select Board — in somewhat harsher tones — about the disconnect between the needs of the schools and the town's assistance in meeting those needs.

The special town meeting is scheduled for Monday night at Swampscott High School.

(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. X/Twitter: @Scott_Souza.)