WESTFORD — Earlier this year, town officials forecast a $4.08 million budget gap amid a failed $6.8 million Proposition 2 1/2 override. The proposed FY26 budget proposal closes several projected budget gaps through new revenue and increased efficiencies.
New efficiencies
Expected revenue for this year is approximately $130 million, up from approximately $125 million last year.
Officials have aimed to close that gap through favorable changes to revenue forecasts, such as increased permitting from new developments under the MBTA Communities Act, increased investment income and increased state aid for the school district.
New efficiencies, such as enforcing solid waste disposal policies, centralizing fleet fueling at the Highway Department, removing subsidies for the recreation department, energy efficiency projects and professional development costs district-wide are slated to save nearly $2.4 million between both the town and school budgets.
Several challenges, such as labor and energy contract cost increases and health insurance costs are driving increases faster than revenue can grow.
“This year, you’ll see that we are using one-time finds such as ARPA [American Rescue Plan Act] and revolving funds to plug that gap, but that is not sustainable into the future,” Town Manager Kristen Las said.
Closing the gap
The school district will draw down several reserve funds over the next three to four years and as WestfordCAT reported, new funding will need to be introduced to allay future budget shortfalls. The town, meanwhile, will use one-time funds and fund its health and life insurance obligations for retirees at 60% of its scheduled contribution to balance the budget in FY26.
Departments have already made several cuts in FY25, including five employees in public safety, the sustainability coordinator, and several and employees across the Department of Public Works, library among others within town hall.
“A lot of people spent a lot of time and made some sacrifices to their departments to get where we are,” Select Board chairman Scott Hazelton said.
Officials also plan to propose paying off some debts during Town Meeting in March, including the Blanchard Middle School HVAC system, the first phase of the Plain Road sidewalk construction project and exterior access controls for district schools.
The Finance Committee will host its hearings between Jan. 9 and Jan. 31, with final budget adjustments slated for mid-February.
