Halifax Selectmen Approve Budget Without Override, Use Free Cash to Close Gap
Board votes to use $745,000 from free cash to balance FY26 budget; tables decision on new insurance requirements for town events
HALIFAX - March 25 - The Halifax Board of Selectmen votes unanimously to approve a fiscal year 2026 budget without an override, opting instead to use $745,000 in free cash to close the budget deficit.
The decision comes after extensive discussion with the Finance Committee and community members about how to address an $810,000 budget shortfall without asking taxpayers for additional funds through an override.
"I have a giddy sense in my heart right now that we dodged the bullet," Selectman Jonathan Selig says after the vote. "While it's nice to be able to dodge all this stuff, we are going to be in a tough spot next year."
The approved plan includes eliminating funding for a new ambulance ($500,000), blacksmith shop repairs ($35,000), and one police cruiser ($60,000) from the capital plan. The remaining $65,000 gap will be split evenly between town departments and the Halifax Elementary School, with each required to cut $32,500.
Town Administrator Cody Haddad presents three options to address the budget deficit: approve an override for the full amount, make cuts to balance the budget without an override, or use free cash to support the operating budget while pushing an override to fiscal year 2027.
Finance Committee Chair Jim Walters recommends using $500,000 from free cash and pursuing a smaller override of $310,000, noting this would reduce the impact on the average taxpayer from $286 to about $107.
However, Selig expresses doubt about the likelihood of an override passing, citing recent failures in neighboring communities like Duxbury and Hanover.
"I can't see asking for even a small override this year and then again next year. To me, it doesn't make sense," Selig says. "If we punt this year, it gives us a full year to prepare people for fiscal year 27."
Selectman Thomas Pratt echoes these concerns, questioning whether it makes sense to risk an override vote when the board is "that close" to finding alternative solutions.
"If we're that close and you're not confident that an override passes, why put it to chance?" Pratt asks.
Several residents express concerns about potential cuts to the school budget, with Halifax School Committee member Lori Costa-Cline urging the board to "think carefully" about asking for additional reductions.
"We cut a lot of student-facing budget items, people, paraprofessionals that support some of our students with the most needs," Costa-Cline says. "There is not much we can cut without putting the town at risk for legal issues with really jeopardizing the quality of the education that we give our students."
The board acknowledges that using free cash for operating expenses goes against financial best practices but decides it's preferable to back-to-back override attempts.
"We're absolutely punting this, and our taxes are going to go up at some point," resident Katherine Snyder says. "Nobody in this room wants our taxes to go up, but we have to be realistic about what's going on here and the entire economy."
The board also tables a decision on new insurance requirements for events held on town property after concerns are raised by event organizers.
The proposed policy would require individual vendors at events like the farmer's market and Halifax Pride to carry their own insurance policies, a change recommended by the town's insurance company.
"If the event has an insurance policy, only the event itself is covered," Haddad explains. "If there ever were an issue where insurance were needed for a vendor, if the vendor didn't have a policy or they weren't covered under the event policy, then the town basically would be on the hook because it's on our property."
Halifax Pride representative Lana Eldridge expresses concern about the impact on small vendors, particularly young people who participate in their events.
"We have kids who make crafts, make balloon animals, teens who have turned their love of art into the ability to paint faces, and adults who have developed a hobby into a way to make extra money," Eldridge says. "For the majority of these participants, they do not have the necessity or the ability to carry insurance for the event."
Farmer's market organizer Steve King also questions the timing and escalating requirements, noting that insurance requirements have changed each time he's approached the board.
"I hope if there's a whole bunch of changes coming up, that it's not right at the end," King says.
The board agrees to table the discussion to explore potential solutions, including the possibility of events obtaining blanket coverage for vendors.
- The board approves street acceptances for Bourne Drive, Christmas Tree Lane, Danson Lane, Heron Road, and Riders Way to be placed on the annual town meeting warrant.
- The board adopts a new capital expenditure policy requiring funds to be spent within two fiscal years, with the possibility of a one-year extension approved by the Town Administrator.
- Chair John Bruno announces he will not seek re-election. He read a statement thanking many of the individuals who he credited with guiding the town of Halifax.
- The board approves the Beautification Committee's request to use the town green on May 3-4 for their annual spring cleanup.