GREENFIELD — Mayor Ginny Desorgher addressed the School Committee Wednesday night to explain why the city cannot fund the School Department’s proposed $1.89 million budget increase in fiscal year 2026.

Desorgher kicked off her remarks by explaining that she has been in touch with both the Massachusetts Municipal Association and the Department of Revenue to seek guidance during the budgeting process.

Despite “prudent budget choices,” she reported that the Department of Revenue recommended “very conservative” budgeting, as the city has a one-in-three chance of its bond rating being reduced next year because of its $74 million in outstanding debt and $51 million in unfunded retirement liability.

Desorgher has proposed a nearly $23.7 million school budget for the next fiscal year, which begins July 1.

“There are three main drivers for that number, including external and internal budget factors,” Desorgher said. “This decision was not made lightly; my emphasis as mayor is establishing a stable financial pathway for the city and our schools.”

Desorgher also explained that the city faces a 16.5% increase in health insurance costs, a spike she referred to as “unprecedented,” that would bring health care costs from $8.8 million to $10.3 million, since premiums have typically increased by 4% annually over the last decade.

“By law, our budget can only increase by 2.5%. For the city of Greenfield, this means that the entire budget can increase by approximately $1.4 to $1.5 million. Most of that increase will go to pay the skyrocketing health care premiums. Our total health care cost will increase from $8.8 million to $10.3 million,” she told the School Committee. “If this were the only department requesting a budget increase, it would be mathematically impossible to fund the city budget and pay for employees’ health insurance. No mayor can submit a budget that the city cannot fund.”

Desorgher also referenced the department’s current redistricting effort, noting that it is still unknown how much the cost of moving the fifth and eighth grade students would be. She noted that the city is still on the hook to pay $1.3 million every year until 2039 to cover the costs of its $60 million high school.

The mayor also noted that the increased cost of out-of-district tuition seems factually inaccurate.

“It was reported to us that out-of-district tuition costs would rise by $1.5 million,” Desorgher said. “The director of student services agreed that all of our students attend schools governed by the office of students with disabilities. … By law, that tuition can only increase by 3.67%.”

In response to the mayor’s remarks, School Committee Chair Glenn Johnson-Mussad made note of the fact that the mayor’s proposed school budget for FY26 reflects a $254 cut from the FY25 budget.

Johnson-Mussad, in response to the mayor’s proposed school funding, thanked Desorgher, who also serves on the School Committee, for disclosing the budget prior to City Council’s vote in April. He said the committee will now have time “to yell and scream” its disappointment.

He described the budget as “unethical” and said it could put the district at risk of state receivership.

“I think this budget that you’re putting forward is an absolute catastrophe for our students. It will represent dozens of positions being lost in our schools,” Johnson-Mussad said. “If you’re noticing declines in enrollment now, this number is going to accelerate that like you would not believe. Families will be fleeing from this district.”

School Committee member Elizabeth DeNeeve asked if the mayor was no longer in support of the redistricting plan. The mayor noted that the city could not afford to continue running “two massive schools” at half-capacity.

Vice Chair Kathryn Martini echoed DeNeeve’s statement, referring to the mayor’s comments on redistricting as “pulling the rug out from under” the School Committee after a more than two-year planning process.

“Our commitment to equity remains incredibly firm, and I agree with all of you on what we had proposed, but things changed,” Desorgher responded. “We need to look at the numbers of the students we have now in light of the rising costs of health insurance.”

Martini also asked Desorgher what she suggests the department cut, to which the mayor responded that while Superintendent Karin Patenaude will ultimately be in charge of determining where the budget needs to be cut, she suggests that the department work to make better use of its school buildings.

“The practice of encumbering larger amounts than you will spend is pervasive. We need to represent the facts properly,” Desorgher said. “Although FY26 seems daunting, FY27 is predicted to be far worse. I sincerely hope we can come together to address these very serious issues. Let’s fix this while we still can.”

Anthony Cammalleri can be reached at acammalleri@recorder.com or 413-930-4429.