With student enrollment continuing to decline and costs for health insurance and special education on the rise, the Hudson School District has unveiled a proposed $75.9 million budget for fiscal year 2027-28, representing a 2.3% increase over the current spending plan.
The Hudson School Board began its budget discussions Tuesday night, after the press deadline for the Hudson Times. The proposed budget outlines district priorities, anticipated expenses, and key financial challenges facing the school system in the coming year.
As part of the budget executive summary, Superintendent Dr. Dan Moulis said one of the most significant factors in developing the budget is student enrollment.
“Enrollment helps define appropriate levels of staffing to support students, along with the costs to maintain the buildings and other incidental costs tied to education,” Moulis wrote.
According to the report, district enrollment has continued to trend downward. Last year, the district reported 2,876 students. That number has decreased to 2,845 students this year.
“The district has been experiencing declining enrollment,” Moulis explained. “Enrollment has varied by grade level in recent years, requiring continued monitoring as future budgets are developed.”
Under the current proposal, total appropriations would be $75,876,790.69, an increase of 2.3% over the current fiscal year budget. The General Fund appropriation would total $71,377,835.24, representing a 2.12% increase.
Moulis stated that the primary cost drivers for the FY 2027-28 budget are contractual obligations, including employee health insurance, along with special education expenses such as tuition, transportation, and related services.
One of the major contracts currently under negotiation is with the Hudson Federation of Teachers (HFT).
“The School Board is negotiating an agreement with HFT, which will be presented as a separate warrant article for consideration by voters,” Moulis said. “The cost changes reflected in the budget for this collective bargaining group include staffing adjustments due to new hires and attrition, as well as increases in benefits costs, including health and dental insurance.”
Moulis emphasized the importance of maintaining competitive compensation for educators.
“Teachers are an important asset to a school district,” he said. “The Hudson community continues to support teacher contracts, and with that support, the district is able to offer competitive salaries that help recruit teachers, improve retention, and reduce turnover. Research consistently shows that teachers are among the most significant factors impacting student success.”
The HFT bargaining unit includes full-time classroom personnel, teachers, para-educators, speech-language pathologists, occupational therapists, physical therapists, library media specialists, nurses, and guidance counselors.
According to Moulis, there are no salary increases for members of that bargaining unit currently included in the FY 2027-28 budget proposal. Any negotiated agreement would be presented to voters through a separate warrant article.
Health insurance costs continue to be another significant budget consideration.
Moulis noted that the district’s aggregate health insurance increase is currently projected at 8.25%, with final cost figures expected by December 2026.
The School Board is expected to hold several additional budget workshops before forwarding its recommendation to the Budget Committee.
The board’s next budget meeting is scheduled for Oct. 19.
A complete breakdown of the proposed FY 2027-28 budget is available on the Hudson School District website.