Warrant Committee on Budget/Override

Posted on January 14, 2026 | Leave a comment

From Stephen Callahan, Chair of the Warrant Committee, this afternoon –

Discussion of Operating Budget Override Article Warrant Committee January 13, 2026 Discussion of Operating Budget Override Article Warrant Committee January 13, 2026 Updates Budget A (Prop 2 ½ budget): New department guidance recommends 1.3% growth rate and asks departments to idenfify cuts and savings to achieve a balanced budget. The Select Board has voted for a placeholder for an operating budget override on the 2026 Town Warrant. The Governor’s budget preview is expected on January 23rd, after which updated guidance will be provided. Many municipalities, as reported in a recent Boston Globe article, are struggling with their budgets this year. Why is there an Article to Override the Levy Limit? Proposition 2 ½ : The Structural Math • Major Cost Drivers: +4 – 18% per year Health Insurance Special Education Transportation Utilities Contractual Wages Result: A predictable multiple year structural gap Preference for residents to be provided with a choice to restore some costs and service cuts while weighing the related tax impact.Why Now? Inflationary pressures remain high, especially in health insurance. Growth in state aid is modest and not sufficient to cover increased costs and Federal relief funds have been exhausted. Department level service budgets are estimating annual increases of 3% -5% for FY 2027. Proactive planning is necessary to avoid future negative “cliff” decisions. Voter approved override can bridge the gap, maintaining service levels and preventing cuts. Scenario Modeling of Department Budgets Estimate of FY 2027 Baseline Average Single Family Tax Bill Increase of $401 Department Budget Growth Scenarios of: +2.5% +3.0% +3.5% Override to the Levy Limit: Impact to Average Single Family Tax Bill Budget Options Budget A ( Prop 2 ½ budget): • Warrant Committee provided department budget growth guidance of 1.3% with request to identify prioritized cost and service cuts. Budget B (Override budget): • When deciding which cuts to restore, departments are looking for WC guidance and input. • What is a reasonable department growth rate? What is a reasonable single family tax increase that is sustainable and has the best possibility of passage at Town Meeting? Scenario Modeling of Department Budgets Estimate of FY 2027 Baseline Average Single Family Tax Bill Increase of $401 Department Budget Growth Scenarios of: +2.5% +3.0% +3.5% Override to the Levy Limit: Impact to Average Single Family Tax Bill Department Budget Growth of 2.5% FY 2026 FY 2027 Forecast Prop 2 /12 $ Change FY 26 to FY 27 % Change FY 26 to FY 27 FY 2027 Forecast $ Change FY 26 to FY 27 % Change FY 26 to FY 27 Override Amount Remaining Revenue Available for Departments $ 59,082,913 $ 5 9,829,657 $ 746,744 1.3% $ 60,559,986 $ 1,477,073 2.5% $ 730,329 School Department $ 44,598,730 $ 4 5,158,788 $ 560,058 1.26% $ 45,706,535 $ 1,107,805 2.48% Town Departments $ 14,484,183 $ 1 4,670,869 $ 186,686 1.29% $ 14,853,451 $ 369,268 2.55% Total $ 59,082,913 $ 5 9,829,657 $ 746,744 1.3% $ 60,559,986 $ 1,477,073 2.5% Impact to Average Single Family Tax Bill FY 2027 Assumed Department Growth 2.5% 3.0% 3.5% Assumed Override Amount $ 730,329 $ 1,025,743 $ 1,321,158 Estimated Average Single Family Tax Bill Impact for Department Override $ 1 75 $ 247 $ 319 Estimated Average Single Family Tax Bill Impact within Prop 2 1/2 $ 4 01 $ 401 $ 401 Estimated FY 2027 Total Single Family Tax Bill Impact with Override $ 5 76 $ 648 $ 720 Assumes Average Single Family Assessed Value $1,028,374 Assumes the Estimated Property Tax Increase Within Prop 2 ½ is $1,680,701 Preferred Scenario ??? • Final recommended override amount will be after Warrant Committee review of savings from department detailed cost reductions and services from a Level Service budget. • Criteria will include tax impact on residents, service restoration extent, alignment with community priorities and fiscal sustainability. • Provide preliminary guidance (subject to change) to departments for Override budgets
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