The story is still inflation

This is an actual sign at the MRI clinic on Shrewsbury Street.
Sometimes, no more comment is needed.

Earlier this week, I was asked what the impact would be on the districts seeing most of the state aid increases from the Student Opportunity Act once we hit the goal rates in FY27.

I said that, because of how low the foundation budget inflation rates are for FY25 and are so far for FY26, I'd expect that such districts would have to make cuts the following year. Districts are being forced to use their Student Opportunity Act-generated increases to cover increased operating costs, because those increased operating costs, which should be covered by inflation, are not. For FY26, the Governor's proposed budget uses at 1.93% inflation rate* which is below the increases districts are seeing in nearly all categories.

Mr. Allen noted this in his presentation on the FY26 budget to the Worcester School Committee: 

“This (the inflation factor adjustment) is still below our expected cost increases for FY26, and while we will not see a budget gap for next year, what we will do is use a majority of our Student Opportunity Act funds to cover the difference,” Allen said. 

as quoted in the T&G

Realize, too, that this means the things for which we fought when we fought for foundation reform--filling the gap of hundreds of teachers, increasing mental health supports, increased spending on facilities and supplies--aren't happening either at all or to the extent actually needed, because those increases are being absorbed by the current budget.

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*for all portions except benefits, which has a 6.18% rate. I know Mr. Allen says it's 1.96%; he's prorating the separate inflation rate in to create a single rate.