School officials found funds to save the elementary-level portion of the Peabody ​​Personalized Remote Education Program (P.R.E.P.) at a school budget meeting Wednesday night.

Wednesday’s meeting follows a proposal which took place the night before to eliminate part of the program to meet budget targets.

Other proposals include taking a calculated risk of cutting approximately $500,000 from health insurance funds and reducing 11 full-time positions across schools. This will not affect employees’ employment status. 

The budget target is approximately $94 million, and after two meetings last week and Tuesday night, where some reductions were made and other funding sources were identified for certain line items, the budget has been reduced to approximately $96 million.

The $94 million includes state aid and contributions from the city. The city pays for school nurses and their equipment needs, the facilities department which consists of 10 maintenance personnel and 30 custodians, and for debt service which pays for debt accrued in projects such as the construction of a new Higgins Middle School and Welch Elementary School, and plans for a new high school.

Mayor Ted Bettencourt prefaced Tuesday night’s meeting, saying that the difficulties in the budget were a “perfect storm” of an approximately $3 million decrease in state-aid increases, no longer having funds from the American Rescue Plan Act, the end of Elementary and Secondary School Emergency Relief (ESSER) funds, and a historic increase in health insurance costs. Bettencourt echoed similar sentiments on Wednesday night. 

“That’s put a little more pressure and created more frustration on our end,” Bettencourt said.

At the beginning of Wednesday’s meeting, Dr. Vadala said that an administrator from the central office, who did not wish to be named, came forward to share their upcoming plans of retirement, reducing approximately $150,000 from the budget and making the number of full-time positions that would be reduced to 12. 

Dr. Vadala also said that additional funds may open up, but officials will not know about its certainty until right before the upcoming school year starts. 

“This represents 11 positions…and this would be our priority to come back and if we do receive any additional appropriations this is what we would give our assurances to, this is our first priority to bring back,” Dr. Vadala said. 

School Committee members on Wednesday’s meeting identified smaller cuts to reach goals of either funding a front-facing position in one of the schools or save the elementary level of P.R.E.P.

School Committee Member Brandi Carpenter identified smaller cuts such as the funds for contracted PR and grant-writing services, and a portion of the Employee Assistance Program that amounts to $36,500. Member John Olimpio also identified approximately $15,000 used for stipends for employees who work during game days, that can be funded through a different source.

After making several cuts and finding $70,0000, the majority of School Committee members voted to save the P.R.E.P. program. 

School Committee Member Beverley Griffin Dunne encouraged her fellow committee members to write to state Sen. Joan Lovely, requesting for Lovely to support an increase in the inflation factor in Chapter 70 funds.

“There are amendments seeking that increase,” Griffin Dunne said, adding that it could result in additional funds that can open up. Other members voiced their agreement to the recommendation. 

Budget meetings are expected to resume in a few days.

There will be a public hearing on the FY25 budget on Tuesday, May 28 at 6 p.m. at the Higgins Middle School Library.