Halifax Prepares for Challenging Budget Season
Town officials anticipate difficult financial year, explore strategies to address constraints
HALIFAX, MA - October 8 - Halifax town officials are bracing for a challenging budget season, with potential deficits looming on the horizon. The Town Administrator and Select Board members discussed strategies to address financial constraints without resorting to an operational override during a recent meeting.
Town Administrator Cody Haddad informed the board that based on his financial projections, the upcoming fiscal year will be "very challenging." He proposed having departments submit both a level service budget and a budget with a 10% cut.
"I do not see a scenario where we could present that balanced budget to the Town Meeting without an override or significant cuts," Haddad said.
The town is facing financial pressure due to stunted new growth and the depletion of one-time funds used to supplement last year's budget. These factors, combined with anticipated increases in expenses, are creating what Haddad described as a "fiscal cliff."
Select Board members expressed skepticism about the viability of an operational override. Board Chair John Bruno stated, "I don't see an override. I just don't see that. We can't get through the CPA. I guarantee you an operational overrideā¦ I don't think I would support it."
Selectman Jonathan Selig echoed this sentiment, saying, "I think even if we presented one to the community, I have little idea that it would [pass]."
Haddad noted that Halifax is not alone in its financial struggles. He reported that nearly 50% of communities in a peer group are considering operational overrides for fiscal years 2026 or 2027.
The last successful operational override in Halifax occurred in fiscal year 2006, when voters approved $300,000 to hire four firefighters. Prior to that, overrides were passed in 2003 and 1992.
The board and Town Administrator plan to meet with the Finance Committee on Oct. 22 to kick off the budget season and discuss strategies for addressing the projected deficit.
In other business, the town is exploring the possibility of full school regionalization with Kingston. Haddad reported that the town is applying for an efficiency and regionalization grant to study the potential merger of the school systems.
"We're working on behalf of the elementary school committees, Kingston and Halifax, to submit an efficiency and regionalization grant to explore the idea of full regionalization," Haddad said.
The grant application is expected to be submitted by Oct. 10. If approved, the study would examine the potential benefits and challenges of merging the school systems.
The town also received positive news regarding grant funding. Haddad announced that Halifax has been awarded a $221,000 green communities grant. The funds will address heating and air conditioning concerns at Town Hall, HVAC issues at the police department, and weatherization of several buildings.
"A lot of which would have been capital gains if we didn't get this grant," Haddad noted, crediting Energy Manager Kathy Stanley for her work on the application.
The board also approved a contract with Collier's Project Managers to serve as the owner's project manager for the new Council on Aging (COA) building. The contract, with a maximum value of $220,000, is part of a project estimated to cost between $3 million and $4 million.
Construction on the new COA building is projected to begin in late summer 2025, with completion expected by the end of 2026 or early 2027.