Halifax Faces Budget Challenges, Considers Using Free Cash to Balance FY26 Budget
Town officials recommend $745,000 from reserves as school costs rise; voters reject MBTA zoning mandate
HALIFAX - May 12 - Halifax officials are grappling with significant budget challenges for the upcoming fiscal year, with education costs increasing by $1.25 million and the town potentially heading toward a Proposition 2 1/2 override in FY27.
At Monday's Annual Town Meeting, Finance Committee Chair James Walters presented a balanced budget that relies on $745,000 in free cash to subsidize operations.
"Due to significant increases in the cost of education, the town was facing a major budget shortfall," Town Administrator Cody Haddad explained during his budget presentation. "The Finance Committee and Board of Selectmen opted to utilize one-time funds, free cash, to subsidize the town's operating budget."
The $31 million operating budget for FY26 represents a 3.26% increase from the current year, but expenditures continue to outpace revenue growth. The Halifax Elementary School budget is increasing by 11.63%, while the Silver Lake assessment is rising by 5.6%.
"The cost of education is an 8.6% increase when you combine the total cost," Haddad noted. "That's broken down as 11.63% for Halifax Elementary and 5.6% for Silver Lake."
Fixed costs that the town has little control over are also rising significantly. The assessment to Plymouth County retirement is increasing by almost 8%, and health insurance costs are up 8%.
"The Department of Revenue does not recommend using free cash to fund the operating budget," Haddad said. "The board, along with the Finance Committee, did decide to do this, ultimately as a buffer year, recognizing that next year, the town will likely need to go for a Proposition 2 1/2 override."
The town's financial challenges are compounded by a significant drop in new growth, which is projected to be around $75,000 for the coming year, down from an average of $150,000 in recent years.
Despite these challenges, the town is making efforts to maintain services. However, there will be reductions in staffing in the administration/selectmen's office, building maintenance department, and library. Several departments have also reduced their expense accounts.
The meeting also addressed the town's stance on the MBTA Communities Act, which mandates multi-family zoning near transit stations. Halifax residents overwhelmingly opposed a proposed overlay district at a Special Town Meeting in December 2024.
Selectman John Bruno presented a proclamation expressing the town's opposition to the state mandate.
"The town of Halifax was clear that the MBTA zoning is not acceptable to the residents here," Bruno said. "What we're trying to do with this proposal is to make that statement even clearer to the state government so that there is no question."
Bruno also revealed that the town has taken legal action on the issue.
"Earlier this week, the town actually did file a complaint in the superior court asking the superior court judge to issue an injunction to prevent the state from doing anything relating to that MBTA zoning," he said.
The proclamation, which passed, states that Halifax "strongly opposes" the provisions of the MBTA Communities Act and urges the Massachusetts Legislature to amend or repeal it "in order to restore local control over zoning decisions."
Town Meeting also approved several other significant articles:
- A 2% cost of living adjustment for all non-union positions
- Moving the Veterans Service Officer from a stipend position to a Grade 6 position
- Updating the Wage and Personnel Bylaw to simplify it
- Approving the FY26 capital plan, which includes $689,000 from free cash and $500,000 from water enterprise retained earnings
- Creating a new anti-littering bylaw with a $300 fine per violation
- Amending town meeting bylaws to allow meetings outside Halifax if capacity requires it
The meeting marked the final Annual Town Meeting for Town Administrator Cody Haddad, who has submitted his resignation, and for Selectman John Bruno, who is not running for reelection. Both received applause from attendees in recognition of their service.
Voters rejected several citizen petition articles, including proposals to impose a building permit moratorium related to water supply concerns, remove the town from the Regional Health Board and SAPHE Act, remove the town from the State’s Stretch Energy code and require zoning bylaw changes to be made only at Annual Town Meeting.
The Annual Town Election is scheduled for Saturday, May 17, from 10 a.m. to 6 p.m. at Halifax Elementary School.