At two recent meetings, town officials sought to offer more detail about the Hanscom misallocation and pushed back against the idea that there had been actual mistakes by anyone.
In 2024, an outside consultant found that — under terms of the contract between Lincoln and the Department of Defense Educational Activities (DoDEA) then in effect — not enough money was allocated to the town from that contract for some expenses. The issue was raised by resident David Cuetos and eventually resulted in a review of the contract and a report by the Collins Center, which found that “some expenses, typically paid by the town on behalf of the Hanscom contract, were being funded by outdated methodologies,” School Committee Chair Matina Madrick said at the group’s March 19 meeting.
Since then, a revised allocation approach was adopted and about $560,000 has been returned to the town’s general fund for Hanscom pension liabilities in FY 2024 and FY2025, but resident David Cuetos and others have been trying to get the town to recover a further $1.5 million they say it is owed from the Hanscom reserve fund.
Cuetos et al maintain that the town should also get reimbursed for misallocations for several earlier years, but the Collins Center report did not address that specifically.
“The amount paid for these years is the difference between what was already paid and the amount if the new methodology had been applied to these contract years. These are the only past years for which actuarial determined contributions are available,” Madrick said.
The report — which was issued about a year before the current contact with DoDEA was signed — updated the methodologies for determining pension payments and indirect cost payments to the town. It made numerous recommendations for improving town and Lincoln Public Schools policies and procedures as well as financial and accounting operations concerning Hanscom. The report also recommended seeking special legislation to establish the Hanscom contract as an “enterprise account operation.”
Some have expressed unfounded fears that town funds have gone directly to Hanscom when they shouldn’t have, but Madrick vigorously disputed that notion.
“At no time has the Lincoln School Committee taken money from the town general fund to pay for Hanscom expenses. The School Committee does not have the authority to move money from the town’s general fund,” she said. “The Hanscom reserve is entirely made up of DoDEA funds from the contract. There is no Lincoln tax levy that goes into the Hanscom reserve.”
As a result of the new methodologies, the annual payment for pension benefits has gone from roughly $200,000 to over $400,000 per year, and the indirect costs (the administrative costs the town incurs to run benefits and other administrative costs for the contract) have gone from $71,000 to close to $200,000, she said.
Madrick added that the Hanscom reserve “should be used primarily to protect the town from increased expenses at Hanscom due to a loss or change in the contract.” In that case, Lincoln would probably be solely responsible for educating the children who live on the base, and the increased expenses would include unemployment benefits for laid-off workers as well as pension and retiree benefits in addition to operating expenses for the Hanscom School.
“Additionally, the School Committee was cautious to commit too much money out of the reserve because of the new financial structure of the new DoDEA contract” that began on July 1, 2025, whose “revenue structure differs from the previous contract significantly.”
However, Cuetos said at the School Committee meeting that “several of the explanations offered for refusing [additional] reimbursement are not supported by the record” and said that Hanscom has been running an annual budget deficit for several years. He also argued that the School Committee does not have control of those funds by right (a notion that has been refuted by town counsel and others). He and others added that the town should “take a much more active role” in overseeing Hanscom funds.
The Select Board agreed at their March 23 meeting with the sentiment that other town officials should have some oversight over Hanscom finances. Board member Jennifer Glass went even further in advocating for consistency across other town departments.
“I agree a hundred percent,” board member Jim Hutchinson said. “If we do this for the School Committee, it better be the same for the Water Department, the library, or any other department that does any kind of budgeting or allocation of shared costs.”
But Hutchinson also said he was “troubled” about the tone of some residents when discussing the issue.
“I disagree with using the words ‘error’ and ‘mistake.’ I feel like that’s when you type in a wrong number to an Excel spreadsheet. I don’t think a stale or inaccurate estimate is an error or mistake. You make estimates all over the place when you make budgets every year,” he said. “I respectfully ask residents to think about the language they use when they talk about this topic.”
Nonetheless, there are still “significant misunderstandings and misstatements,” said resident Sarah Postlethwait. “I know it may look bad for the town to have a misallocation pointed out, but don’t try to put lipstick on a pig.”
When Cuetos first raised the issue in 2022, he was “dismissed and denied,” she added. “Frankly, residents are being generous in describing it merely as a mistake.”
“I personally am sorry it took us so long to figure out what to do about that,” Hutchinson said earlier in the meeting.




