East Bridgewater Faces $236,000 Budget Deficit for Fiscal Year 2026
Town Officials Consider Department Cuts, Fund Reallocation to Address Shortfall
EAST BRIDGEWATER - December 9 - East Bridgewater officials are grappling with a projected $236,000 budget deficit for fiscal year 2026, prompting discussions on potential cost-cutting measures and fund reallocation.
The deficit, representing less than 1.5% of the town's budget, was revealed during a recent Select Board meeting where financial challenges were a central topic.
Town Administrator Charlie Seelig explained the primary factors contributing to the shortfall. "The main challenge for us is that under current conditions, the retirement system, the increase in the retirement system, the increase in the health insurance, will pretty much offset the amount of money that we're getting from our property tax revenue," Seelig said.
The town is facing increased costs in several areas, including retirement contributions and health insurance. Plymouth County Retirement System recently extended its full funding timeline from four to six years, resulting in continued annual increases for the town.
Town Accountant Melanie Dean highlighted the severity of the health insurance cost increase. "Health insurance, we're being told to estimate a 10% increase, which is actually even larger than what our FY26 increase in Plymouth County retirement will be," Dean said.
To address the deficit, town officials are considering asking departments to submit budgets 1% lower than the current fiscal year. Seelig emphasized this approach would provide "a little bit of very, very tiny breathing room between a balanced budget and a deficit."
The town is also exploring the reallocation of resources from capital projects to operations. However, Seelig warned of potential consequences. "What it means, if you do that, is the backlog of equipment, the backlog of road work and everything becomes longer and longer," he said.
Another option under consideration is a pension obligation bond. This would involve borrowing money equal to the town's liability with Plymouth County, currently estimated at $25 million. While this could potentially lower annual payments, Seelig cautioned about associated risks and emphasized it would not solve all financial problems.
Select Board member Peter Spagone expressed concern about the impact on town services and personnel. "Now, you know, can we rectify the situation? Yeah, but we all know what the outcome of that is, right? We lose teachers. We lose, you know, abilities that we don't want to have to do, but that's just the way," Spagone said.
Officials stressed that East Bridgewater is not alone in facing these financial challenges. Dean noted, "It's important, I think, to know that we are not the only town in this area having this exact same conversation. Many started it last year with layoffs and overrides, whether their overrides passed or not."
The town is actively seeking solutions to mitigate the impact of the deficit. Dean mentioned ongoing discussions with various entities, including the Group Insurance Commission (GIC), Plymouth County, and debt advisors.
Select Board Chair David Sheedy emphasized the importance of public understanding and engagement. "If you have questions, if you don't understand what we've been talking about for the last couple of months, please come in," Sheedy urged residents.
As discussions continue, town officials plan to work closely with department heads to find ways to reduce costs while maintaining essential services. The Select Board, Finance Committee, and Capital Planning Committee will be involved in making decisions about budget allocations and potential cuts.
The town will continue to explore all available options to address the projected deficit, with further discussions and decisions expected in the coming months as the fiscal year 2026 budget is developed.