Finance staff reported to the school committee that Norwood's FY26 federal grants have been awarded and that the district has no immediate shortfall for the current fiscal year. The district receives roughly $2.5 million in federal grant funding across programs and has been monitoring federal budget news closely.

On school meals, the finance director told members the district received federal reimbursements for September and had commitments through at least November; the school nutrition revolving fund holds more than $1.5 million and average operating costs are about $250,000 per month, meaning the nutrition program could operate for several months even if federal reimbursements were delayed. Chartwells, the district's food-service vendor, has provided similar assurances.

School-based Medicaid (MassHealth) reimbursements were described as stable; the district reported it increased claimed revenue by more than $150,000 last year and that a town warrant article of $300,000 helped fund three staff positions tied to Medicaid-related services. Finance said it was not aware of any immediate reductions to Medicaid claims, but that the district is watching federal developments for FY27 implications.

The committee also received a review of encumbrance carry-forwards and staffing reconciliation. The finance director explained how encumbrances from one fiscal year carry into the next and presented a multi-year table showing carry-forward and liquidation patterns; the school budget returned roughly $500,000 to town free cash across the most recent multi-year period. Administration presented an updated FY26 staffing reconciliation showing operating FTEs largely on plan after cost-neutral changes, the movement of several OT/PT positions from federal IDEA grant lines to the operating budget to allow Medicaid claiming, and about a five-position net reduction in the operating budget as a result of those moves.

Committee members asked about Head Start service interruptions related to the federal shutdown; finance said the district would follow up on the Head Start lease and any local impacts. Board members also discussed the need to present a full funding picture (operating, grants, revolving) as budget work proceeds and to plan for possible FY27 and subsequent-year pressures.

What this means: For now, Norwood officials said they can maintain school nutrition and Medicaid-funded services through the current fiscal year even in the face of a federal funding disruption. The committee emphasized planning for FY27 and asked administration to present level-of-service and prioritized-reduction options before the January budget meetings.