WHRSD Special Education Account Depleted, District Used Current Year Funds to Cover FY25 Shortfall
HANSON - November 12 - Whitman-Hanson Regional School District ended fiscal year 2025 with a $218,000 deficit in its special education Circuit Breaker account and used $565,000 from this year’s first reimbursement payment to close the gap, leaving just $35,301 to cover expenses until three more quarterly payments arrive. Business Office Consultant Brian Hyde revealed the precarious financial position during the Budget Subcommittee’s inaugural meeting November 12, where newly appointed members questioned past budget practices and the district’s current trajectory.
The Full Story
The meeting marked the first comprehensive financial review since the committee’s reconstitution after not meeting for several years. Chair Ryan Tressel and T.J. Roffey, both navigating their first budget cycle, joined second year member Rosemary Hill in pressing Hyde for answers about the district’s finances.
Circuit Breaker funds are state reimbursements for special education costs exceeding four times the foundation budget per student—approximately $64,000 per child. The state reimburses 75% of costs above that threshold. Hyde explained that best practice calls for spending Circuit Breaker money received in one fiscal year on the following year’s budget, creating a financial cushion for unexpected expenses.
The district’s Circuit Breaker balance eroded dramatically over two years. In FY24, it rolled over $1.6 million from FY23 and received $2 million in new revenue but spent $3.4 million—leaving $234,840. “You had a pretty healthy circuit breaker account at that time,” Hyde said. “You were doing best practice.”
FY25 proved catastrophic. Starting with the $234,840 rollover and receiving $2.6 million in new revenue, the district again spent $3.4 million—creating a $218,000 deficit. The District then used $565,000 from FY26’s first Circuit Breaker payment to eliminate the shortfall, leaving the current balance at $35,301. The district expects three more quarterly payments this year totaling $1.8 million.
Assistant Superintendent George Ferro noted the district has historically managed Circuit Breaker funds both ways—spending in the same year received or holding for the following year. “There was a buffer that you could use during that year when unexpected things arise,” he said.
Tressel raised concerns about discrepancies between town audit records and district budget documents. The Abrahams Group audit commissioned by Whitman and Hanson showed $3 million in Circuit Breaker funds offsetting the FY25 budget, while district records showed $2.9 million. Hyde said he couldn’t reconcile the town’s accounting but provided detailed state ministry reports documenting the district’s transactions.
The committee also questioned the budget cuts made following the towns’ rejection of operational overrides last May. The budget faced a $1.7 million reduction, but it is unclear if staffing and expenses were actually reduced to the same level. Neither Hyde nor Ferro seemed sure if the cuts matched the budget reduction voted in June.
Hyde said “My take is that the budget was reduced and positions were not eliminated. I think what I understand is the superintendent told the former business manager, we need to reduce by 1.7 million… I think that their budget may have been reduced 1.7 million, but I don’t know if it was ever followed up through, followed up within the particular expense lines and salary lines.”
Ferro seemed to agree, “I think what Brian said took place. I think there were cuts to the budget. I do not believe that there was clarity in where those cuts should be made… I think those questions have to be asked of someone other than myself, because I’m the Assistant Superintendent.”
Hyde emphasized that it is the Superintendents budget until its voted by the School Committee. “This is ultimately your budget. You know, I know the Superintendent’s taking the heat on it, but ultimately it’s the school committee’s budget.” Hill raised frustrations with the School Committee not being provided the level of budget detail necessary to do their job in the past.
October budget reports showed spending generally on track, with $13.8 million expended against a $43 million annual budget—32.24% at 33% through the fiscal year. However, Hyde cautioned that fall expenses are front-loaded, with summer months seeing less spending.
Transportation emerged as a pressure point. The budget shows $847,000 expended against a $3.1 million allocation, but Hyde explained the district awaits three invoices totaling approximately $380,000 for September through November. “We’re looking at the first five months being 1.3 million, and then times that by 2.4, and that’s 3.1 million,” Hyde calculated, projecting the transportation budget will align once all invoices arrive.
Hill also pushed for improved transparency, requesting all materials 48 hours before meetings. “I think transparency, making sure that everything we do is out there and very clear,” Hill said. “I think it will ease tensions.” Hyde and the administrators committed to the timeline.
The committee established a regular meeting schedule—December 10, January 14, February 11, March 11, April 8, and May 13 at 5:30 PM—and discussed FY27 budget development. Hyde said level-service budgets are due November 22, with department meetings scheduled December 2-6. The administration plans to present a preliminary FY27 budget January 28.
“We’re going to do a level service, and then I’m going to say to the committee and to [Superintendent Jeff Szymaniak], by the way, that level service is what it costs to run it as it is,” Hyde explained. “And then we’re going to start making some decisions on what we want to cut or what we want to invest in.”
Hyde detailed recent staffing adjustments, including eliminating a vacant Director of Facilities position and consolidating two technology roles into one, reducing personnel costs while maintaining services. He addressed athletics officials’ costs appearing high at 71% of budget, explaining that fall sports require the most officials and those bills arrive early in the fiscal year.
Regarding special education transportation, Hyde acknowledged ongoing challenges with out-of-district placements but said the district is working to return appropriate students to in-district programs. “The more we can educate our students in-district, and if we’re able to provide the services that are by law required... then we can educate them where they live,” Hyde said.
Hyde acknowledged the challenging environment and community tensions. “What we can do as leaders is kind of like turn the volume down a little bit on all this stuff and just focus on the work, focus on the people that are being impacted by the work that we’re doing,” he told the group.
Why It Matters
Depleting the Circuit Breaker account and using current-year funds to cover prior-year deficits violates fiscal best practices and leaves the district vulnerable to unexpected special education costs. With just $35,301 in reserve and annual special education spending historically reaching $3 plus million beyond Circuit Breaker reimbursements, the district has virtually no cushion for mid-year emergencies. This financial management failure compounds the district’s broader crisis that has already triggered staff layoffs and deepened tensions between the School Committee, administration, and both communities.
What’s Next
The Budget Subcommittee meets December 10, 2025, at 5:30 PM prior to a full School Committee meeting. Hyde will provide historical information about previous budget subcommittee operations. The committee will continue monthly budget reviews and begin substantive FY27 budget discussions. Department heads submit level-service budgets November 22, with review meetings early December. The full School Committee receives the October budget report November 19, a meeting that DESE Associate Commissioner of School Finance Jay Sullivan may be invited to attend.