Cambridge School Working to Close $2 Million Gap Seeks to Avoid Massive Tax Levy Increase

CAMBRIDGE – The Cambridge School Board got its first look at the 2026-2027 school budget at its regular meeting on January 8. The proposal indicates a massive tax increase is looming if the district cannot find a way to reduce expenditures before the budget comes up for a vote in May.

PRESENTATION

Business Manager Michele Hogan presented the budget information to the Board. Commenting on the current difficult financial climate, Hogan stated the top expense drivers for the coming year are health insurance (+9.0%), special education (+7.5%), BOCES (+5.0%), and salaries (+3.5%).

In addition to these increases, Hogan said the first draft of the budget for 2026-2027 included maintaining the current program and adding a few items that were requested last year and deferred or that emerged as a need this year.

The list includes: adding eight positions (two teachers’ aides, one secretary, one facilities employee, two teaching assistants, a bus driver and a bus monitor); maintaining 14 positions currently funded by grants; increasing the allocation to pay substitutes by 30%; making contractual improvements to buildings and grounds; increasing the budget for benefits by 1% and the budget for athletic mergers by 5%; and allocating 10-12% more for legal, auditing, insurance, and financial professional services.

Hogan’s presentation on this round of the budget projected expenses for the year to be $28.4 million. Revenues, coming from state aid (54.9%), property taxes (38.4%), the fund balance, and other small sources, are projected to total $25.9 million. This leaves a gap of approximately $2.5 million. With each $100,000 equaling one percent of the tax levy, the current projection is a 20-25% tax increase.

PLAN TO REDUCE

Over the next few months, the board and administration will work to close the gap and reduce the levy. Hogan reported they already have identified about $500,000 in increased revenues from State Aid and the levy increase allowed under the tax cap (which should be around 2% this year). The plan is to identify efficiencies and review unfunded mandates. Final state aid numbers and an allocation from the fund balance may also affect the increase.

During an interview after the meeting, Superintendent James Ducharme stated the goal is to “maintain what we have and build in the future.” He commented that if the district has to go to a contingency budget or make major cuts, it may be difficult to regain what is lost.

Because it is likely that the district will have to exceed the tax cap, the district will need a supermajority (60%) for the budget to pass. Ducharme confirmed that if the budget is not approved, and the district goes to contingency, the situation would be very difficult for the district. He and Hogan are hopeful, however, that they can close some of the gap and reduce the tax increase.

UPCOMING MEETINGS

The board will hold a budget workshop on January 22. The public is welcome to attend to hear more. The discussion and another presentation is scheduled for the regular Board meeting in February. Ducharme and Hogan want to be as transparent as possible and encourage the community to attend and get involved in the solution to this looming problem.