FY2027 Budget

Across the public-sector facilities field, it is widely recognized that school districts must reinvest approximately 2–3 percent of the replacement value of their facilities each year to keep buildings in good working condition and prevent the accumulation of deferred maintenance.

This benchmark reflects the reality that major building systems—such as roofs, electrical systems, fire alarms, and building envelopes—have finite lifespans and must be repaired or replaced on a predictable cycle.

This guidance is particularly relevant for Dedham, where the school portfolio includes seven buildings ranging in age from 8 to more than 120 years old, with several facilities well into the second half of their expected service life. Older buildings require higher and more consistent capital reinvestment as multiple major systems reach the end of their useful life at the same time.

Capital Request Overview Presented to Budget Subcommittee and School Committee

Capital Budget Request Memo to FinCom and CEC

The chart shown above illustrates straight growth year over year. The chart below adds level service funding requirements from F21-F26,  illustrating the gap between approved funding levels and the cost of sustaining core services. 

The school department’s operating budget is primarily dedicated to supporting people and programs that directly serve students. As shown in the chart, nearly four-fifths of the budget (about 79%) is spent on Personnel Services, which includes salaries and benefits for teachers, educational support staff, administrators, and other employees who work with students every day. This reflects the people-centered nature of education and the importance of maintaining high-quality staff in our schools.

Beyond personnel, approximately 14% of the budget is used for the Purchase of Services, such as special education services, transportation, professional services, and other contracted supports that schools rely on to meet student needs.

Supplies and Materials account for just over 3% of the budget, funding classroom materials, instructional resources, technology supplies, and other items that support teaching and learning. Utilities represent about 3%, covering essential costs like electricity, heating, and water to keep school buildings safe and operational.

Finally, Operating Capital makes up less than 1% of the operating budget, supporting smaller-scale equipment purchases and replacements that help maintain daily school operations.

Overall, the operating budget reflects a strong commitment to investing in staff and services that have the greatest direct impact on students, while carefully managing the essential costs required to operate school facilities and programs.

Over the past several years, the District has faced ongoing structural underfunding, meaning that annual cost increases—such as contractual obligations, inflation, special education needs, and utilities—have consistently grown faster than available revenue. As shown in the accompanying graph, while budgets approved at Town Meeting have increased gradually over time, they have often fallen below the funding level required to fully support district services.

To balance the budget in recent years, the District has had to make difficult reductions and deferrals, including holding positions vacant, reducing programs or services, limiting supply purchases, and postponing investments in staffing and instructional resources. These actions allowed the District to remain fiscally responsible but also placed increasing strain on schools and staff.

• The funding levels presented in the FY26 operating budget are designed to clearly illustrate this challenge and the District’s strategy for addressing it.
• The Base FY26 budget and Funding Level 0 reflect the minimum funding required to sustain current services after years of cost containment and reductions.
• Funding Levels 1 and 2 begin to stabilize core services by addressing the most pressing gaps created by prior underfunding, particularly in personnel and student support services.
• Funding Levels 3 and 4 represent a longer-term approach, allowing the District to move beyond reactive cuts and toward sustainable investments that support consistent staffing, instructional quality, and operational reliability.

This graduated approach provides transparency about both where the District has been and where it is trying to go. Rather than proposing abrupt changes, the budget framework acknowledges past constraints while outlining a responsible path toward restoring stability and ensuring the District can continue to meet the needs of students, staff, and the community.