If you want to understand what’s happening to the South Hadley school budget, you have to start with one key fact:
Special education costs are rising rapidly — and they’re not optional.
This isn’t unique to South Hadley. It’s happening across Massachusetts and the country. But the local impact is real, and it’s one of the biggest reasons the school budget is under pressure.
A Post-COVID Surge in Student Needs
Since the COVID-19 pandemic, school districts everywhere have seen a sharp increase in the number of students requiring special education services.
In South Hadley:
- The percentage of students requiring services has grown significantly
- Needs are more complex than they were just a few years ago
- More students require intensive, individualized support
This isn’t just a temporary spike. District leadership has repeatedly noted in recent budget discussions that student needs have increased in both volume and intensity in the years following COVID.
For many students, disruptions during COVID affected:
- Early childhood development
- Speech and language skills
- Social-emotional growth
- Behavioral regulation
As a result, schools are now serving more students — and providing more intensive services per student.
In FY 2026, South Hadley Public Schools fully transitioned special education transportation away from Van Pool, a for-profit provider that had effectively operated as a monopoly in the region.
At the time, contracted transportation through Van Pool was costing more than $1 million per year.
The district instead purchased its own vans and moved transportation entirely in-house.
The result:
- Continued compliance with all legally required student transportation
- Greater flexibility and reliability
- Ability to also support legally mandated transportation for homeless students
- Savings of hundreds of thousands of dollars annually
This is a clear example of the district actively working to control costs without reducing services to students.
Special Education Now Takes a Much Larger Share of the Budget
Just a few years ago, special education made up a significantly smaller portion of the school budget.
Today:
- Special education accounts for roughly 38% of the school budget, up from about 25% in prior years
That shift is dramatic.
And unlike many other parts of the budget, these costs are legally mandated.
Why These Costs Can’t Simply Be Cut
Public schools are required by law to provide a Free Appropriate Public Education (FAPE) to every student.
That means:
- Services must meet each student’s individual needs
- Staffing levels are driven by those needs
- Programs cannot be reduced simply to save money
In practice, this means special education is one of the least flexible parts of the budget.
When costs rise, districts can’t scale services back — they must find ways to fund them.
When Needs Exceed What the District Can Provide
In some cases, a student’s needs go beyond what the district can provide in-house.
When that happens, South Hadley is legally required to place the student in an appropriate out-of-district program — and pay for it.
These placements can be extremely expensive:
- Day placements can cost tens of thousands per year
- Residential placements can exceed $100,000 per student, per year
Even a small increase in the number of these placements can have a major impact on the overall school budget.
What’s Driving the Cost Increases?
1. More Students Requiring Services
The overall number of students qualifying for special education has increased.
2. Higher Levels of Need
More students require:
- Out-of-district placements
- Specialized classrooms
- One-on-one support
3. Transportation Costs
Specialized transportation — often required by law — can be extremely expensive, especially for out-of-district placements.
The Bottom Line
The rising cost of special education isn’t the result of mismanagement or overspending.
It reflects:
- A real increase in student needs
- Legal obligations the district must meet
- A broader trend affecting districts everywhere
South Hadley is already taking steps to manage these costs where possible. But the reality is simple:
When needs rise this significantly, the budget has to rise with them.
What This Means for the Future
Understanding these trends is essential for making informed decisions about the town’s finances.
Special education will continue to be:
- A major driver of school spending
- A legally required obligation
- A reflection of the community’s commitment to all students
The challenge isn’t whether to fund these services.
It’s how to do so sustainably — while preserving the quality of education for every student in South Hadley.