Final Warrant Committee FY 2026 Omnibus Prop 2 1/2 Budget Guidance

From Steve Callahan, Co-chair of the Warrant Committee today –

Dear Medfield Budget Makers and Elected Officials                                                      

Update

This email will serve as a brief update to our December 11, 2024 communication to budget makers on the Department FY 2026 Operating Budget targets.   The Warrant Committee has completed their review of the FY 2026 omnibus operating budget (forecasted revenues and shared/fixed costs) and voted at our meeting on February 26, 2025 to bring forward to Town Meeting an FY 2026 Operating Budget within the Prop 2 ½ framework. 

This final FY 2026 Operating Budget (attached below) allows for a maximum increase in aggregate FY 2026  appropriations/expenditures for school and town departments of 3.4% and 3.5%, respectively over their FY 25 approved budgets.

A host of net unfavorable factors required a decrease in previously provided targets.  The most significant matter was the recently updated estimate of health insurance costs from MIAA for active and retired employees of Medfield school and town departments (representing a 16.92% rate increase).

Accordingly, the FY 2026 Operating Budget brought forward by the Warrant Committee to the Town Meeting will allow for an aggregate limit on any increases in the FY 2026 school and town departments of 3.4% and 3.5%, respectively.  The amount of COLA for non-contract employees who are not covered by the Collective Bargaining Agreements and salary increases as stipulated by relevant Collective Bargaining Agreements for contract employees are expected to fall within these aggregate limits.  As previously communicated, any department requests above these aggregate limits are expected to necessitate a Prop 2 ½ override and supplemental budget. 

The Warrant Committee looks forward to receiving final department  budgets from the Superintendent, School Committee and Town Administrator on the details of their budget requests within these aggregate limits in the next couple of weeks in order to move forward with the preparation of the warrant report for Town Meeting.  We remain committed to sustainable balanced budgets within the Prop 2 1/2 framework that continue to provide essential and important services, and that the Town’s overall costs and tax rate are controlled as well as possible.

Best,

Steve Callahan

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