41 School Positions Cut After $1.2 Million Free Cash Infusion Fails at Town Meeting

Key Points

  • Town Meeting rejected a $1.2 million bid to use free cash to save 41 school positions
  • Superintendent Baeta confirmed 41 staff layoffs are necessary to meet the $69.2 million school budget
  • Town Manager Calter warned that using one-time cash for operations would threaten the town's bond rating
  • A procedural motion to waive the 48-hour notice for budget amendments failed to reach a two-thirds majority
  • The overall $150.7 million FY2027 General Fund Operating Budget was officially approved

Stoughton’s second night of the 2026 Annual Town Meeting was defined by a stark choice between immediate job preservation and long-term fiscal stability, as members ultimately rejected a bid to use free cash to prevent dozens of school layoffs. Despite an emotional plea to rescue 41 positions within the school district, Town Meeting members sided with municipal leaders who warned that tapping into one-time reserves for recurring expenses would lead the town over a fiscal cliff. The night concluded with the final approval of the overall $150.7 million fiscal year 2027 budget, but not before a deep dive into the financial pressures squeezing both the classroom and the town’s credit rating.

School Committee Chair Chris Shannon opened the discussion on Article 12 by describing a school system operating under sustained fiscal pressure. While the district has made gains in staffing stability, Shannon noted that the financial structure of the town has not kept pace with modern educational demands. This is not a budget that expands programs; it focuses on maintaining core services and stabilizing the system, Shannon said, explaining that the Finance Committee’s $69.2 million recommendation represented only a 2.9 percent increase, driven largely by mandates and transportation costs.

Superintendent Joseph Baeta provided the evening's most sobering data, confirming that while the budget technically adds six mandated special education positions, he is forced to issue layoff notices to 41 full-time employees. This is not 'fluffing' money, Baeta told the body. When I send a layoff notice, it means I don't have the money. I want to be clear: I have not contacted anyone in this body to ask for more money from the floor. That is a legislative decision. Responding to questions about why the budget is rising while some enrollment figures fluctuate, Baeta explained that while shelter-related enrollment has dipped, residential growth remains stable and state hold harmless funding of $75 per student is woefully insufficient to cover rising costs. Superintendent-elect Miller added that the district is aggressively trying to manage costs by educating students in-house, noting, If the needs of the child can't be met in Stoughton, we must send them out, per federal law, which drives up expensive out-of-district tuition.

The tension peaked when Town Meeting Representative Marguerite Mitchell introduced an amendment to shift $1.2 million from the town’s free cash reserves into the school budget. Mitchell argued that this year constitutes a rainy day for Stoughton’s children and staff. We are looking at reducing staff by 41 people—our neighbors, Mitchell said. No other department is reducing staff. We have $1.5 million in available unused free cash even after other transfers. This doesn't solve the whole problem, but it reduces the drastic impact. Motion Made by M. Mitchell to amend Article 12 to increase the School Department budget by $1.2 million using Free Cash. Motion Failed.

The proposal met stiff resistance from Town Manager Thomas J. Calter, who delivered a firm warning about the town’s future borrowing power. Calter argued that using one-time cash for operating budgets is the first step off the fiscal cliff, noting that such a move would likely tank the town’s bond rating just as it prepares to borrow for massive infrastructure projects like the South School and a new fire station. Fiscal responsibility doesn't mean hoarding cash; it means using it prudently, Calter stated, reminding the body that free cash serves as the town’s rainy-day fund and is projected to shrink in coming years.

Other members echoed the need for fiscal restraint. Representative Dave Lurie spoke against the infusion, arguing that using one-time money is a mistake; when that money isn't there next year, you'll have to fire the same teachers anyway. Lurie questioned whether children are truly safer when municipal resources are drained. Representative Diane Dolan also voiced opposition, citing guidance from the Department of Revenue. We have 200 fewer children; how can we possibly need more teachers? Dolan asked. Conversely, Richard Terry supported the school funding, stating, To lay off 41 people is devastating to them and the children. If this were any other department, you'd be outraged. Representative Rachel Lazarus shared a personal perspective on the value of staff, noting she has seen the impact a paraprofessional can make on a child's self-worth.

Procedural hurdles also shaped the debate. An attempt to suspend the rules to allow for more flexible budget amendments failed to reach the required two-thirds majority. Motion Made by C. Campbell to suspend the rules to allow budget amendments to be proposed without 48 hours' notice. Motion Failed (65-60). Moderator Bob Anzivino, who opened the evening by thanking student volunteers for their assistance, clarified that the failed vote meant several other potential amendments could not be heard due to the town's strict 48-hour notification rule.

Beyond the school debate, Town Meeting moved through several other departmental budgets. The Cedar Hill Golf Course budget passed following a presentation by Victor Beruzer, who noted the course is on track to beat previous revenue numbers. We are doing more with youth programs to expand the game, Beruzer said. Motion Made by J. Baeta to appropriate funds for the Cedar Hill Enterprise Fund. Motion Passed.

During the review of the general municipal budget, Finance Director Elizabeth Biz Zaleski answered questions regarding the town’s debt, which she estimated at roughly 5 percent of the annual operating budget, or $7.5 million. When Representative Lisa Lyons questioned the sustainability of the health department’s wellness coordinator and the transition from the VNA, Zaleski and HR Director Deanna Chatzko provided technical clarifications on benefit costs and accrued vacation buyouts. Chatzko explained that buyouts are standard payments for accrued time when long-term employees retire. Ultimately, the body moved to approve the full spending plan. Motion Made to approve the FY2027 General Fund Operating Budget (Article 12) as presented. Motion Passed.

The meeting also handled several housekeeping items, including a unanimous vote to shift Community Preservation Committee articles to the upcoming Monday session. Motion Made by J. Baeta to postpone CPC Articles 22-31 to Monday night. Motion Passed.