Residents will get a clearer picture of Marblehead’s financial challenges — and a possible need for a general property tax override — at the annual State of the Town address Wednesday, Jan. 28, at 6 p.m. at Abbot Hall and on Zoom.
Town officials have spent months warning of a deepening fiscal crisis. A recently updated three-year revenue and expense forecast projects a $7 million deficit in fiscal 2027, ballooning to $11 million in fiscal 2028 and $15 million by fiscal 2029 if current trends continue.
Finance Director Aleesha Benjamin said costs are outpacing property tax revenue, which can increase by only 2.5% per year under state law, aside from taxes on “new growth,” of which Marblehead typically has little.
Employee health insurance remains the town’s greatest financial pressure. Marblehead participates in the state’s Group Insurance Commission, and early projections suggest another steep increase next year.
“I’m hearing 15% to 17%,” Benjamin said, adding that insurance experts expect double-digit increases for the next two to three years.
“It’s really the healthcare that’s burning cities and towns right now,” she said.
About 80% of the town’s budget is tied to personnel costs, including active employees and retirees. The forecast shows the sharpest growth in salaries — municipal employees signed a new contract last year — as well as in health insurance and pensions.
Trash collection costs are also expected to rise significantly. Public Health Director Andrew Petty told the board the town’s expiring 10-year contracts could result in a 51% increase in fiscal 2027, followed by annual hikes of about 3.5%.
“There will be a balanced budget, but there will be some pretty big reductions to achieve that,” Benjamin said.
School override?
The School Committee faces similar pressures and must decide whether to seek its own property tax override. Superintendent John Robidoux is expected to present his budget to the committee Feb. 5.
At the committee’s last meeting, he warned of potential staffing and program cuts. The school district, and all town departments, have been told to submit level-funded budgets. For the schools, that will require $1.7 million in cuts.
Citizens petitions
Four citizens petitions will appear on the Town Meeting warrant this May. Three were filed by the same resident — Marblehead Housing Authority member Bill Kuker.
Kuker’s proposals include:
- Restoring the elected terms of the Select Board to one calendar year, effective for the 2027 elections.
- Repealing Article 34, passed at the 2024 Town Meeting, which established the Department of Planning and Community Development — thereby eliminating, disbanding and defunding that department and all positions related to it.
- Limiting employment contracts for municipal employees, except for union contracts, to one calendar year. Existing multiyear contracts would convert to one-year terms upon expiration.
A fourth petition, submitted by Lynn Nadeau, calls for the town to affirm its “unwavering commitment to founding principles and documents, civil responsibility and the rule of law protecting the rights and welfare of all its people as we celebrate honor and celebrate the 250th anniversary of the United States of America.”
Town leaders have until Jan. 30 to submit their warrant articles. Town Meeting is held the first Monday in May.
