WORCESTER ― Worcester Public Schools plan to seek a 7.9% budget increase for the next fiscal year, raising the total to $523.9 million from this year’s $485.7 million. The proposed $38.2 million increase is largely tied to higher enrollment, which has also led to additional state funding.
Deputy Superintendent Brian Allen outlined the budget plan during a presentation to the School Committee on Feb. 6, noting that the district expects operational costs to rise by $31.7 million. That leaves an additional $6.5 million available for the expansion of operations for the upcoming fiscal year.
The financial outlook is significantly better than last year when the district faced a $22 million deficit that resulted in staffing cuts and reliance on city funds, the Telegram & Gazette reported.
More Students, More State Funding
Student enrollment is a key driver of the budget increase. In October 2024, the district had 428 more students than the previous year, marking a 1.8% growth. Since state funding is based on student population, this increase translates into additional financial support.
“The enrollment change will directly impact our budget next year,” Allen said.
The district has also seen a rise in students requiring additional resources. There are now 429 more low-income students and 576 additional multilingual learners. Currently, 71% of Worcester’s 24,778 students are classified as low-income, and 32% are multilingual learners—both groups that receive targeted state funding.
Allen pointed to the opening of the new Doherty Memorial High School last fall as a contributing factor to the increase in student enrollment.
“The ninth-grade class at Doherty of 455 students is the highest single-grade enrollment at the school since 2005,” Allen said.
(Photo credit: Fontaine Bros.)
Inflation Outpaces State Adjustments
Allen stated that the state’s formula for adjusting per-pupil spending for inflation will fall short of the district’s anticipated cost increases. While the state is expected to provide a 1.96% inflation adjustment, employee benefit costs are projected to rise by 6.13%, adding approximately $12.6 million in expenses.
To address the gap, Allen said the district will rely on the Student Opportunity Act, a state law designed to improve education funding equity. Worcester is set to receive $17 million under the act next year.
“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.
Prioritizing Student Success & Watching Federal Funds
The remaining $6.5 million in additional funding will focus on closing student achievement gaps, aligning with Superintendent Rachel Monárrez’s goals for the district.
However, federal funding remains a concern. Allen said the district receives around $52 million—or 10% of its total budget—from federal sources, which support 460 positions, including teachers, paraprofessionals, Head Start employees, and school nutrition staff.
“The administration is closely watching any new developments from Washington that will impact federal funds to Worcester,” Allen said.
The budget process will continue over the next several months, with meetings involving educators and community members. The School Committee is expected to hold an official budget hearing in June.
