Town officials trimmed $1.7 million from the proposed fiscal 2026 budget during a March 25 Select Board meeting, with public safety chiefs warning they’re already operating at dangerously lean staffing levels amid cuts to police salaries and fire overtime.
“At 31 it’s difficult. We’re at the tightest edge,” Police Chief Dennis King told the board about his department’s staffing. “Thirty-one is as lean as you get.”
Finance Director Aleesha Benjamin explained the need for the cuts.
“After all budgets were submitted and insurance numbers were finalized, a $1.7M shortfall was identified,” Finance Director Aleesha Benjamin told the Current. “To address the budgetary shortfall and balance the budget, we made necessary budget cuts.”
Fire Chief Jason Gilliland described a department stretched thin by absences. The Fire Department assigns 40 people to fire and emergency rescue. They are divided into four groups of 10 members, each consisting of one captain, one lieutenant and eight firefighters.
“We have three out due to budget reductions over past years. We have two out on probably indefinite military because they write their own orders. We have three to four out right now with cancer-related injuries,” Gilliland said, adding that “we’re down to pretty much a whole shift out.”
The Board of Health is taking a substantial hit, needing to cut $182,505 from its waste disposal budget and another $60,000 in funds for the Marblehead Counseling Center.
The $1.7 million in cuts affect 10 departments under the Select Board’s purview, Abbot Library and Recreation & Parks, which have a combined fiscal 2026 operating budget of approximately $50.08 million, a modest increase of $904,134 (1.84%) over the current fiscal year’s $49.18 million budget.
Despite this increase, departments still faced significant cuts from their requested amounts to close the $1.7 million gap between budget requests and available revenue.
All of this comes despite what initially appeared to be a positive financial outlook. In recent months, the town received approximately $2.4 million in unexpected interest income, creating an impression of financial stability. However, Benjamin clarified that this income had already been factored into revenue projections.
“The town’s FY 26 budgetary requests exceeded the town’s allocated revenue by $1.7 million. The interest from local receipts is incorporated within the total revenue allocation,” Benjamin explained to the Current.
The December financial forecast had actually projected a $1.8 million deficit for fiscal year 2026, a figure that remained relatively stable despite the interest income. The current $1.7 million shortfall represents the continuation of this structural deficit rather than a new financial challenge.
Benjamin noted the underlying issue: expenditures are growing faster than revenues can keep pace.
“We anticipate recurring annual deficits, as expenditures continue to outpace the rate of revenue growth as presented in December and at the State of the Town,” she stated.
The town faces significant constraints on revenue growth due to Proposition 2½ limitations.
Benjamin explained that property taxes represent “approximately 80% of the town’s total revenue” but can only increase by 2.5% annually plus minimal new growth. Meanwhile, major expense categories are increasing at much higher rates: “health insurance premiums have surged between 10.5% and 17.1%. The pension contribution has risen by 8.6%, and casualty insurance premiums have increased by 8%.”
Select Board member Bret Murray voiced particular concern about public safety cuts.
“I worry about the safety and the burnout of our firefighters and police, and that’s something I think we need to take a little bit of a harder look at between now and town meeting,” he said.
The Fire Department faces a $100,000 reduction in overtime funding despite significant staffing challenges. With multiple personnel out on military leave or medical absences, the department is operating below full strength, creating strain on remaining staff.
Similarly, the Police Department’s $50,000 salary reduction comes as the department is already operating with fewer officers than in previous years. King explained that minimum staffing levels remain at “three on every shift, except for Friday, day and evening,” though even with scheduled shifts of four or five officers, absences frequently reduce actual staffing to the minimum level.
Benjamin noted that to address potential volatility in health insurance costs, they’ve “set the health insurance cushion to $700K and have increased the Finance Committee Reserve by $300K for additional transparency.”
She warned that even with these precautions, “a mere 10 adjustments could deplete up to half of the cushion” for health insurance, highlighting the volatility in this budget area.
The DPW will lose $60,000. Superintendent Amy McHugh described her department’s extensive reorganization. “We have five divisions that we’re covering. We went through … kind of just looked at what everybody did, how does everyone interact, how can they work together, how can we make some things more cohesive,” she said.
Beyond the current budget challenges, Benjamin warned of additional financial pressures on the horizon, including “the imminent expiration of the waste management contract next year” which will add “over $300K in recycling costs, alongside escalating trash collection costs.”
The town is implementing several measures to improve its financial position. “We have conducted an extensive review and restructuring of departmental operations to improve efficiency,” Benjamin wrote. Officials have “adjusted departmental fees to reflect municipal benchmarks, are actively reviewing new recurring meals and room tax revenue, and implemented comprehensive financial systems.”
While Benjamin confirmed there would be “no tax override for May Town Meeting,” she acknowledged that “a tax override may be necessary for the fiscal year 2027 budget given the structural deficit with the trash contract expiration and added recycling costs and other rising contractual costs outpacing annual revenue.”
