WHITMAN – The Select Board and Finance Committee agree that it will likely take an override to resolve the town’s deficit situation. The question remains how big and whether it would be a one-year or a multi-year one?
Some important numbers, which would allow a projection, are not in yet, which is one reason another joint meeting is planned for Tuesday, Feb, 25, after the School District budget is released on Wednesday, Feb. 12.
“It might make sense to have more joint meetings than we’re accustomed to, said Select Board Chair Dr. Carl Kowalski during the Tuesday, Jan. 21 joint meeting. FinCom Chair Kathleen Ottina attended remotely be phone and Finance members Mike Flanagan, Jason Hunter, Vice Chair Mike Warner, Rick Anders and Al Cafferty also attended. Select Board member Laura Howe was absent.
W-H Superintendent of Schools Jeff Szymaniak also attended the meeting.
Select Boad member Shawn Kain opened the meeting with a brief review of the latest revenue and expenditure projections before the two boards got down to discussing the financial outlook for fiscal 2027.
“The preliminary budget numbers indicate that an override is necessary [his emphasis] to maintain level services,” Kain said, announcing that current revenue projections and expense outlook put the town at a deficit of about $1.7 million, inviting a discussion “on the size and scope” of an override this year.
That figure already factors the 2.5 percent increase for town department and adding a progression of 1 percent and so on, dividing the calculations to 1-percent increases, without interrupting that negotiation.
But what kind of override? That was his question regarding the size and duration of such a move.
Flanagan said Kain’s last budget review on Jan. 7 “opened my eyes a little bit,” and he found some sense in Select Board member Justin Evans’ proposal of a possible multi-year override, “to spread it out a little bit.”
Winter also favored a multi-year override.
“I would be concerned each of the following years … that we have to go back each year to hope that [voters] would go for another one,” he said. “We’re hearing it from the departments. We have some pretty major capital outlays that need to be made.”
All union locals for both the schools and town are due for contract negotiations this year, Evans and Szymaniak also noted.
Looking at a deficit that big, Ottina asked if a grant from the state secured by Town Administrator Mary Beth Carter that allows her to project the impact of different union contract raises on the budget
Carter confirmed that information.
While not wanting anyone to tip their hand in a contract negotiation, Ottina wondered what the pact of a 1-percent rise, “just or the sake of having a piece of information out there.”
“On a multi-year override, I don’t think we explained exactly how that works too well,” Evans said. “So, my thought was, if we have reasonable expense projections out, say, three years, is override to the level that you would need to be at in those three years, and not tax to the levy in the first two years.”
By intentionally leaving excess levy, which [the town] had not been doing for the past three years, so that we’re no hitting the taxpayers at the maximum level,” he said. “It would be one override vote, but it would step up, almost like it was a couple of overrides.”
It would increase by 2.5 percent plus new growth during the interim years, but it’s all projection right now.
“For me, I’m thinking that we should have the smallest possible override that we could ask the people to consider, knowing that we’re sacrificing, we’re demonstrating our sacrifice, and asking them to sacrifice in a way that’s a complement to our own, so we can just get by with level services, but that is a different message” he said.
While going back before the voters each year is a harder route, Kain said it would be the better route.
Andrews said he agreed, noting that a year-to year override is a better option because, it gives the town options.
Where the budget stands
“If we look at what we had in revenue last year, and what we have in revenue this year … we’re looking at a little over $800,000 in new revenue,” Kain said. “We’re pretty sparse, is the message that was sent out to the department heads.”
Among the bigger expenses officials are keeping an eye on is an 11.32 percent (or $323,260) increase in Plymouth County Retirement. “It’s a huge number for us,” Kain said. Medical and health insurance is estimated to increase by 7 percent.
“We’re not exactly sure where that’s going land, so that’s just a place-holder,” he said.
WHRSD, about a $20 million assessment line for Whitman, and $200,000 for every 1 percent it increases. Kain therefore put an estimated increase of 5 percent sits at close to $1 million.
“It is also important to note that we had discussed as a board earlier that a creative way to get them some revenue that’s not currently used in the operating budget, is the funding that we used to fund our OPEB liability,” he said. “That doesn’t mean that we’re not going to fund our OPEB liability, it’s just that it would go in the queue at Town Meeting and we’d ask for the Town Meeting’s support to pay for it with free cash.”
Resident John Galvin asked why free cash has not yet been certified by the state.
“We can’t talk about it unless we get it certified,” he said.
Carter said she had the town accountant’s office to check on the free cash certification status on Tuesday. The tax rate had been set in mid-December and took priority as well as a lot of year-end documents to be reconciled by the treasurer-collector’s office.
“I was told today that, where we have a new accountant in place full-time, the DOR is putting us at the top of the list and were working on it this afternoon,” Carter said, adding that it was hoped that task would be done that afternoon and could be available as soon as Wednesday, Jan. 22.
The budgeting situation means that the district is “missing critical components” in the district budget.
“They don’t have an educationally sound budget at W-H Regional School district, so they need more funding,” he said. “But they’re getting less money from the state because [of] this hold-harmless situation, so they’re in a bind.”
Instituted in 2021 to help with funding gaps as pandemic-related enrollment losses, hold-harmless provides funding stability for districts experiencing declining enrollments. It can take several forms, such as limiting changes in state aid from year to year, providing supplemental funding for districts with declining enrollment, or using past enrollments in grant calculations, but some argue it may unintentionally disadvantage districts that were seeing steady enrollment or increases before the pandemic.
“We know they’re in a difficult situation with their current budget,” Kain said, noting that Szymaniak has reported to the School Committee on the specifics of the problem. “That’s definitely going to hurt when it comes to hold-harmless, which means we’re not looking to get more money from the state.”
South Shore Tech’s Whitman enrollment is down a bit, as well, Kain has included a level-funded number as a place-holder, but SST Superintendent/Director Dr. Thomas J. Hickey said that number would be reduced some to reflect that decline.
Kain noted that Whitman Fire Department’s budget is down by 2.36 percent, due mainly to recent retirements.
“We used free cash last year [$509,212], so that puts us behind the eight-ball a little bit this year,” he said.
Resident Robert Kimball of Auburnville Way said his calculations put SST at a 10-percent decrease in Whitman students for an $80,000 decrease in that budget.
Galvin noted that SST’s budget is a zero-based plan calculated on a three-year rolling average of the enrollment for each community.
“Even though [Whitman] is down 18, that average isn’t going to come down that much, it will, but not that much,” he said.
Kimball also pointed to a new cannabis retailer expected to open by mid-year, and expressed the expectation that it might help reduce the hit on taxpayers. He also questioned how WHRSD enrollment numbers could be continuing to decline when “we seem to have more and more people moving into the community.”
Szymaniak said the high school is down by 109 this year, and indicating the same trend has been true for lower grades – although there is anecdotal evidence of some classes bouncing back a bit. But the high school number “isn’t surprising” because some students opt for SST or carter and parochial schools.
“It looks like grades one and two are continuing to build back up to areas that might be sustainable, but those [families] aren’t having four or five kids anymore, they’re having one or two.”
“I’m very pleased that we’re having this discussion in January,” Ottina said. “The information has to be gotten out to the public.”
Noting that Hanson is using ARPA funding to help them illustrate the override need to its residents through the use of Guilfoil Public Relations, a firm already used by Whitman Police and Fire, as well as the schools to inform residents a how an override could hep the town’s fiscal outlook,
“Supporting an override doesn’t mean that you want the override to pass,” Kain said “But I do think the right choice is to allow the town to make that desicion.”