On Feb. 5, Town Administrator Thatcher Kezer presented his annual State of the Town address as the fiscal year 2026 budget process nears finalization in anticipation of the May Town Meeting. The good news is that there will be no request for a Proposition 2 1/2 general override this year notwithstanding earlier concerns that such an override would be needed to balance the budget. (There will, however, be two requests for debt exclusion overrides to fix the high school roof and renovate the Mary Alley Building.)
As recently as last November when the teachers strike was settled, the School Committee reported there would be a $3.17 million shortfall in the school budget that would require a general override. Now, we are told this will not be necessary in FY26.
Last week, Kezer cited reasons for this change of events, including a strong position in the amount of available free cash and — somewhat astonishing in our opinion — an increase in annual interest income from $60,000 to more than $2 million. With regards to the dramatic increase in interest income, we are reminded of some residents’ earlier criticisms regarding the town’s management — or lack thereof — of its revenues and liquid assets.
There have been many changes to our Finance Department in recent years, which may well account for positive changes to the management of the town’s assets. Assuming that to be the case, we applaud such efforts.
Last year as we approached Town Meeting, representatives of the School Committee warned of massive cuts and layoffs that would result if there were not a general override in June. Then — miraculously — with no general override, funds were found in their budget to avoid such consequences.
All of this reinforces the opposition of many in town to any suggestion that we should ever need or support a general override. Yet, to steal a phrase often mentioned at last week’s State of the Town, this is where the rubber meets the road.
By all projections, while we are escaping the debate over a general override one more time, it appears almost certain that this time next year there will be no way to balance the budget — absent major layoffs — without an override.
Rising health insurance premiums, our mandated contributions to the retirement system, anticipated increases in the cost for trash disposal, year two of the settled teachers’ contracts and currently unknown increases associated with yet-to-be-settled municipal and police contracts, to name a few, cast a dark shadow over the sustainability of our current level of services without the infusion of additional capital from a general override.
It is anticipated that voters at the 2026 Town Meeting will be asked to support a budget, subject to subsequent approval at the ballot box in June, that will call for a general override sufficient to sustain town services for the following three to five years. Our town leaders would be well advised to clearly and transparently present their data to support the call for such action, failing which it may be impossible to convince residents that they are again being warned that the sky is falling.
So, while we may be able to breathe a sigh of relief that the dreaded general override debate has been postponed, storm clouds are most definitely on the horizon.
