The Hudson School Board began its annual budget season with an early look at the major contractual cost drivers expected to shape the FY28 General Fund budget, receiving a detailed preliminary overview from Business Administrator Jenny Graves during its most recent meeting. While the numbers are still in flux, the presentation offered the Board its first sense of how rising salaries, benefits, and mandated services may impact next year’s spending plan.
Graves emphasized that the district is still in the earliest stages of budget development, but said she wanted to give the Board a foundation for discussion before more formal drafts arrive. In a memo accompanying her presentation, she described the update as a “first look” at the highest-level contractual obligations that will influence the FY28 budget, comparing them to FY27 to estimate the percentage increase the district may face.
She cautioned that the figures presented are not a preliminary budget and will continue to shift as departments refine their requests. “This estimate will adjust over the next several weeks as the Finance and Human Resources Departments work on the final touches of the largest benefit drivers: salaries and benefits,” Graves said. Principals and directors are also drafting their individual FY28 budgets, which will be incorporated into future versions.
Graves reiterated that the numbers should not be interpreted as a proposed or default budget. “This estimate should not be viewed as the preliminary proposed or default budget provided to the School Board,” she wrote, noting that the Board would later review the second draft of the FY28 budget timeline.
Although no action was requested at this meeting, Graves said the administration will return on Sept. 8 with a refined estimate and will seek guidance from the Board on whether it wishes to set a ceiling – a maximum allowable percentage increase – for the FY28 General Fund budget relative to FY27. Setting such a ceiling has been used in past years to help frame deliberations and maintain fiscal discipline.
The early estimates show several significant contractual increases. Salaries tied to collective bargaining agreements are projected to rise by $541,073. Contractual benefits – including health insurance and retirement contributions – are expected to increase by $777,366. Special education transportation services, a cost that fluctuates based on student needs and placements, are projected to rise by $125,000.
Altogether, the estimated contractual increases total $1,438,439, representing a 2.06% increase over the FY27 budget. Graves noted that the estimate does not include the Hudson Federation of Teachers (HFT) collective bargaining agreement, which will enter negotiations during the upcoming budget cycle. If an agreement is reached, its costs would appear as a separate warrant article on the ballot.
The memo also clarified that the estimate does not include appropriations for the Special Revenue (Grants) Fund, Food Service Fund, or Revolving Account Funds, all of which contribute to the district’s total appropriation but are not part of the General Fund calculation.
School Board Chair Maureen Dionne said the breakdown was “unbelievably helpful,” noting that clear explanations of contractual increases will help the public understand why certain costs rise each year. She thanked Graves for providing a transparent starting point as the district prepares for what is expected to be a busy budget season.
The next School Board meeting is scheduled for Sept. 8 at 6:30 p.m.