Gloucester's $55.8 million school budget: who decides, what it pays for and what was cut

The short version:

• Gloucester's schools get $55.8 million from the city this school year. That is $1.55 million more than last year.
• The School Committee asked for $56.8 million. That was the amount it said it needed to keep things the same.
• So the schools cut 15.5 jobs. Every school lost something.
• State law gives the City Council only one vote on schools: the total. The elected School Committee decides how to spend it.
• The state also sets a minimum that Gloucester must spend on schools. Gloucester spends more than that, but the extra cushion is getting smaller.
• 84.7% of Gloucester's class of 2025 graduated in four years. The state rate was 89.3%.

This story is part of our Gloucester Budget Watch series and our look at Cape Ann's school budgets. See how Cape Ann's three school districts compare (Nov. 1). Part 1 looked at the whole $179 million city budget (Oct. 5).

Why we are sharing these numbers

This story puts the school budget next to other facts about Gloucester's schools: how many students go to each school, how old the buildings are, test scores and graduation rates. We share them so readers can see what the money pays for and how students are doing, all in one place.

These numbers can help you ask good questions. Where is the money going? Which schools and students need more help? What did the cuts change? They cannot tell you everything about a school. They do not show how much a student grew, how safe and welcoming a school feels, or the work of teachers and staff every day.

Most of all, these choices are made in public meetings that anyone can attend. The more people who understand the numbers, the better those conversations can be. The end of this story shows when and how to take part.

Who decides the school budget?

For most of the city budget, the mayor writes a plan. Then the City Council votes on it. The council can cut any single line, such as police overtime or road salt.

Schools work differently. A state law, Chapter 71, Section 34, says the council sets "the total appropriation for the support of the public schools." An appropriation is the amount of money set aside. The law also says the council "may not limit the authority of the school committee" to decide how that money is spent.

Here is what that means. The council picks one number for the schools. It cannot say "save this class" or "cut that job." Council President Tony Gross pointed this out before the council voted in June.

The School Committee makes those choices. Gloucester voters elect its members. The mayor is also a member and gets a vote. The committee builds the school budget each winter, holds a public hearing and asks the city for money. After the council sets the total, the committee decides what to keep and what to cut.

The state's minimum

The state helps pay for schools. This year it is sending Gloucester $12.6 million in school aid. The state calls this Chapter 70 aid, after the law that creates it.

In return, the city must spend at least a minimum amount on its schools each year. The state calls it "net school spending." The minimum is the state aid plus a local share that the state works out for each city and town.

Not every cost counts toward the minimum. School buses, school lunches, new buildings and building loans do not count. Neither does grant money. But some costs the city pays do count. These include fixing and heating school buildings and health insurance for retired school workers.

What if a city spends too little? It must make up the gap the next year. If it falls more than 5% short, the state cuts its aid.

Gloucester has spent more than the minimum every year since at least 2016. In fiscal 2025, it spent $67.2 million. The minimum was $49.4 million. So Gloucester spent 36% more than it had to. The average district in Massachusetts spent 26% more.

(A fiscal year is a budget year. In Gloucester it runs from July 1 to June 30. Fiscal 2025 ended in June 2025.)

But the cushion is shrinking. The state minimum has gone up $14.8 million since fiscal 2022. That is a jump of 38%, as the state phased in a 2019 school funding law called the Student Opportunity Act. Gloucester's planned spending for fiscal 2026 was almost the same as fiscal 2025. So the extra amount above the minimum dropped from $17.9 million to $15.8 million. This year, the minimum goes up another $2.6 million.

Where did the $67.2 million in fiscal 2025 come from? About $50.4 million was in the School Committee's budget. The city paid the other $16.9 million. That included $8.4 million to take care of school buildings and $4.7 million for retirement and retiree health insurance.

Where the $55.8 million goes

Most of the school budget pays for people. Salaries are 71%. Benefits, such as health insurance, are 17%. Together that is 88%. Ben Lummis, who was superintendent then, told city councilors on June 2 that this is why cuts mostly mean fewer jobs.

Health insurance drove this year's increase. Benefits went up $1.41 million, or 17%. That used up almost all of the $1.55 million in new money.

Special education is the biggest part, at $16.8 million. It pays for help for students with disabilities. About 51 Gloucester students go to special programs outside the city. Their tuition is expected to cost about $7.6 million this year. Getting them there costs about $1.35 million more. The state pays back part of these costs. That money is expected to be about $3.7 million this year.

How the number was set

• March: The superintendent's first plan asked for $57.9 million. That was $3.7 million more than last year.
• April 29: The School Committee lowered the request to $56.8 million. That was the cost to keep the same staff and programs. The vote was 6 to 1. The mayor voted no.
• May 5: The mayor's city budget gave the schools $1.25 million more than last year.
• May 27: The School Committee voted 5 to 1 to send its $56.8 million request to the mayor.
• June 1: The mayor added $300,000 for schools. The city paid for it by expecting more money from trash fees. The city also agreed to pay a one time $150,000 bonus for school aides, called paraprofessionals. The bonus was part of the deal that ended their strike.
• June 16: The City Council approved $55,778,897 for schools. The vote was 8 to 1.
• June 24: The School Committee approved its final budget, 6 to 0. It came with a list of cuts to cover the $1.05 million gap.

What was cut

The schools cut 15.5 jobs. A half job means a part time position. Here is the list the district published:

• Gloucester High School: one fewer teacher in each of English, math, science, social studies, world language, cabinet design and business. Also one fewer family engagement liaison for families of students learning English. The district says it still has two bilingual community engagement liaisons.
• O'Maley Innovation Middle School: The eighth grade's two teacher team is gone, which means two fewer teachers. Teachers for students learning English drop from two to one. Assistant principals drop from three to two, so there is no longer one for each grade. Office assistants drop from three to two.
• Elementary schools: Third grade at Beeman goes from three classes to two. Help for Beeman students learning English drops from 2.5 jobs to 2. Tutoring was cut back.
• Across the district: one fewer computer staff job and one fewer school nurse. The teacher for students with vision problems was replaced by an outside service with fewer hours.

Earlier lists, through mid June, had 18.5 cuts. Lummis told a council committee June 2 that the extra $300,000 would save three teaching jobs. That matches the drop to 15.5. The district did not say how much each cut saves. At the June 24 meeting, one speaker objected to losing AP Computer Science.

School by school

Each school has its own part of the budget. It pays mostly for the teachers and staff who work in that building. The chart below shows each school's budget, how many students go there and how its students did on the state's MCAS tests last spring.

MCAS is the test Massachusetts students take each spring. The scores below show the share of students who "met" or "exceeded" expectations. That means they showed they know the material for their grade.

Below average is not failing

MCAS sorts students into four levels: exceeding expectations, meeting expectations, partially meeting expectations and not meeting expectations. "Meeting expectations" is a high bar. It means a student is fully on track for their grade. A student who is "partially meeting" is still learning the material. That is not a failing grade.

An average is a middle point. Every year, many schools and districts across Massachusetts land below the state average and many land above it. A school below the average is not a failing school. The numbers show where students are doing well and where they may need more help.

In spring 2026, Plum Cove was the only Gloucester school above the state average in reading: 45%, compared with 39% for the same grades statewide. It matched the state in math. West Parish and Plum Cove were above the state in science. Every other school was below the state average in reading and math.

Across the district, 34% of students in grades 3 to 8 met or beat expectations in reading. The state figure was 40%. In math, it was 29% in Gloucester and 41% statewide. In grade 10, 33% met or beat expectations in reading and 39% in math. The state figures were 45% and 44%.

The gap with the state has grown in math. In 2019, Gloucester was 6 points behind the state in grades 3 to 8. In 2026, it was 12 points behind.

Test scores depend on many things, not just money. In Gloucester, 26.6% of students have disabilities. The state average is 21.1%. A school's budget line also leaves out special education, benefits and other costs that help its students. So budgets and scores cannot be compared directly.

How many students graduate

Graduation is one of the most important results of a school system. The state tracks each class from the time students start ninth grade. For Gloucester's class of 2025, 84.7% graduated in four years. Another 5% were still in school, working to finish. About 9.4% dropped out. Statewide, 89.3% graduated in four years.

Some students need an extra year. Counting five years, 89.4% of Gloucester's class of 2024 graduated. The state rate was 90.5%.

Since the budget passed

The School Committee's Building and Finance Subcommittee checks on the budget during the year. At its Sept. 16 meeting, the district reported these changes:

• Seven aides added. Four one on one aides were hired for students who need them, because of a student's special education plan, a medical need or a vision impairment. They cost about $176,225. Three more aides replaced outside companies the district had been paying, at a cost of about $124,670.
• Special education tuition is a little lower so far. 50 students now go to programs outside Gloucester, one fewer than planned. Their tuition is projected at about $7.44 million, compared with $7.61 million in the budget.
• Busing costs are still unknown. The district projects about $1.57 million to transport these students, slightly more than planned. It said it has not received the bills for the school year yet.
• A clean audit. An outside audit of the district's year end report to the state for fiscal 2025 had no findings.

Warning signs for next year

District budget papers point to some pressures for fiscal 2028:

• One time money. This year's budget leans on $880,000 that will not come back: $500,000 in tuition paid early with last year's money and $380,000 from state special education savings.
• Less in the special education savings account. The district expects that state reimbursement account to fall to about $421,872 by the end of this year, after spending about $5 million from it.
• Health insurance. The school budget pays its own workers' health insurance. Last year that cost came in $654,050 over budget, and this year it rises $1.38 million.
• Old buildings. In March, the subcommittee recommended asking the Massachusetts School Building Authority for help with Beeman and Plum Cove, which opened in 1956 and 1966. The state's school building program can take seven to 10 years or more from application to a finished building.

Other money for Gloucester schools

The $55.8 million is not everything spent on Gloucester students. There is also:

• Federal grants of about $1.9 million a year. Most of it helps students from low income families and students with disabilities.
• State special education money, about $3.7 million this year, as described above.
• The school lunch program, which runs on about $1.75 million in federal and state meal money.
• School costs in the city's budget. The city pays about $5.7 million a year on loans for school buildings, mostly East Veterans and West Parish elementary schools. It also pays to fix school buildings, $1.7 million in electric bills for schools and city buildings, and health insurance for retired teachers.

One source of money is gone. During the pandemic, the federal government sent Gloucester schools about $6.8 million in relief money. That money has run out.

Spending per student

About 2,780 students went to Gloucester public schools in October 2025. That is close to the number in 2020.

In 2024, the latest year the state has posted, Gloucester spent $22,663 per student in its own schools. The state average was $22,414. When tuition for students who go to school elsewhere is included, Gloucester spent $23,039. The state average was $23,165.

How do test scores compare? In spring 2026, 60% of Manchester Essex students in grades 3 to 8 met or beat expectations in reading. In Rockport it was 37%, and in Gloucester 34%. The state average was 40%. In math, it was 56% in Manchester Essex, 35% in Rockport and 29% in Gloucester, compared with 41% statewide.

Spending more per student does not always mean higher scores. Rockport spends the most per student of the three districts, but its scores in grades 3 to 8 are below the state average. Many things shape test results, including how many students have disabilities, come from low income families or are learning English.

How we checked this

School budget numbers come from Gloucester Public Schools' own budget papers and its June 24 adopted budget. The state minimum, spending per student and student groups come from the Massachusetts Department of Elementary and Secondary Education. Fiscal 2025 is the latest year with final state minimum numbers. 2024 is the latest year for spending per student. We did not adjust any dollars for inflation. We checked every figure on Oct. 5, 2026.

Why your voice matters

The school budget is not set in a back room. The School Committee and the City Council make these choices in public meetings. People can speak at those meetings, send emails and watch them online.

Last spring, residents spoke up at both steps. The School Committee held its budget hearing in May. At the City Council's budget hearing on June 9, 41 people spoke, and most asked the council to fully fund the schools. Parents, students, teachers and taxpayers all bring something the numbers cannot: what is happening in classrooms and what the community wants.

You do not need to be an expert. You can ask a question, share what you see at your child's school or say what matters most to you. The best time to speak is early, before the big votes in the spring.

What comes next

Since the budget passed: On Oct. 14, the School Committee heard that the money kept in reserve for surprise special education costs will drop to $348,382 going into fiscal 2028, the smallest ever, after about $4.1 million in state "circuit breaker" money is spent this year. Read more about the special education cushion. On Oct. 28, the special education director said test scores and the budget come to the committee on Nov. 18. Read what the committee heard on Oct. 28.

Next meetings: The full School Committee meets Wednesday, Nov. 4, and Wednesday, Nov. 18, at 6 p.m. Check the committee's meeting schedule for agendas, places and Zoom links. No hearing date for the fiscal 2028 budget is posted yet.

Work on next year's school budget, for fiscal 2028, starts this winter. Superintendent Amy Pasquarello took over after Lummis left in June. The School Committee has not posted its budget schedule yet. The road map below is based on last year's steps and the committee's posted meeting dates for 2027.

How to speak up: You can talk during public comment at School Committee meetings, in person or on Zoom. You can also email the committee at [email protected]. Committee members are Chair Kathleen Clancy, Vice Chair William Melvin, Secretary Laura Wiessen, Melissa Joy Teixeira Prince, Heather Dagle, Andrea Liacos and Mayor Paul Lundberg. Budget papers are on the district's Budget Central page.

Earlier coverage: Gloucester's $179 million budget, line by line (Oct. 5), which covers the council's school vote and the June 9 public hearing.