WESTFORD — Town officials are beginning the fiscal 2028 budget process with a preliminary $3.1 million gap as rising expenses continue to outpace expected revenue growth.
The early projection was presented during a Sept. 1 Tri-Board meeting of the Select Board, School Committee and Finance Committee.
Officials emphasized that the figure is preliminary and will change as departments submit their budgets and additional information becomes available. The gap could fall into the mid-$2 million range once health insurance figures and other adjustments are incorporated, which is what it has been in previous years.
Officials said Westford continues to face significant financial pressure as costs increase faster than revenue allowed under Proposition 2½. The town’s fiscal 2026 and 2027 budgets also relied on planned uses of one-time funds that are no longer expected to be available.
School transportation and special education tuition, energy and utility costs, health insurance and Medicare expenses are among the pressures facing the town. Officials also cited the Middlesex County retirement system liability, deferred building maintenance and the need to maintain competitive employee compensation.
Preliminary projections show town department expenses increasing by about $1.7 million in FY28.
The school budget is projected to increase by approximately $3.9 million. Officials said the depletion of one-time funds used to support the FY 2027 school budget is contributing to the projected increase.
Nashoba Valley Technical High School’s assessment remains uncertain because the cost depends on the number of local students attending. Officials assumed a five percent increase for preliminary planning.
The town’s financial picture could also improve as officials refine projections for new growth and health insurance.
Officials said the $3.1 million gap already accounts for normal revenue growth, including the Proposition 2½ increase and projected new growth.
Town officials said they had expected a gap of more than $2 million by the end of the previous budget cycle, but more recent figures have increased the projection.
Officials will continue refining the budget as department requests and updated revenue and expense projections become available.
