KINGSTON - September 18 - Kingston officials confronted a sobering financial reality during a joint meeting of the Board of Selectmen, School Committee, and Finance Committee, where preliminary budget forecasts indicate the town may need a Proposition 2.5 override of nearly $1 million for fiscal year 2027. The projected deficit stems from lost state funding, limited new growth revenue, and rising education costs that threaten to strain the community's financial resources.
The Full Story
Town Administrator Keith Hickey presented a five-year financial forecast that painted a challenging picture for Kingston's fiscal future. The analysis projects a need for a $989,000 override in fiscal year 2027, primarily driven by the end of one-time state funding and constrained revenue growth following a water moratorium that was recently lifted.
The school department faces particularly acute challenges, with School Committee member Jeanne Coleman saying that Kingston alone will lose approximately $800,000 in shelter funds that helped balance previous budgets. "We're looking at about a $5 million hole that we're digging out of, to start," Coleman said, referring to the regional district's overall deficit. The loss of these one-time funds, combined with the district's use of $1.3 million in excess and deficiency funds last year, creates a structural budget imbalance heading into the new fiscal year.
The forecast assumes conservative revenue growth, with new growth estimated at $1 million for fiscal 2028 compared to just $400,000 in fiscal 2026. Much of the anticipated growth is tied to potential development at Kingston Collection, though no official announcements have been made. State receipts are projected to increase by 4.5% annually, while local receipts are expected to grow by 2.75%.
On the expenditure side, the town is planning for wage increases of 2% in fiscal years 2027 and 2028, then 3% for the following three years. The town has six collective bargaining agreements expiring June 30, 2026, which will need to be renegotiated. Operating expenses are projected to increase by 1.5% annually, though certain costs like retirement, health insurance, and property liability are expected to rise at higher rates.
The school department's budget challenges are compounded by timing issues with state aid notifications and enrollment data. Business Manager Sarah Hickey and Superintendent Jill Proulx have moved up their internal timeline, with principal budgets now due October 1st and a goal of presenting a votable budget to school committees in December rather than spending months working through preliminary numbers.
Finance Committee member Marsha Meekins emphasized the importance of the "why" behind any override request, noting that public understanding of the reasons for additional funding will be crucial to success. "If you're a good salesman, you can sell ice to Eskimos. So the why becomes huge in my judgment," she said.
Board of Selectmen member Carl Pike expressed concerns about maintaining realistic expectations, warning against starting with inflated numbers that could never realistically be approved by voters. "I think the schools can sell a $2 million override overnight. I don't think they can sell an $8 million override overnight," Pike stated, emphasizing the need for practical budget development that considers what the community can support.
The police department is also seeking additional staffing to meet community needs, with requests for additional officers and supporting equipment included in the forecast. These departmental increases add to the overall budget pressures facing the town.
Coleman acknowledged the district's challenging position but stressed the need for transparent communication with taxpayers about revenue sources and budget comparisons. The committee is considering requesting a warrant article to amend the town's budget timeline bylaw, which currently requires earlier submission dates that conflict with state aid notification schedules.
The forecast shows improving conditions in outer years, with projected excess tax levy capacity of $394,000 in fiscal 2029 growing to $1.1 million by fiscal 2031. However, these projections depend heavily on assumptions about new growth, state aid, and the successful management of current budget pressures.
Town Administrator Hickey, who is departing next week, stressed the importance of early communication about potential override needs. "If there is going to be a discussion about an override, the earlier you can make people aware that's going to be out there, the better off you are to educate people," he said.
Why It Matters
A nearly $1 million override would represent a significant tax increase for Kingston residents at a time when many municipalities are struggling with similar fiscal pressures. The loss of one-time state funding creates a structural deficit that cannot be addressed through temporary measures, requiring either substantial budget cuts or additional revenue through an override. The success or failure of such an override could determine the level of services the town can provide, particularly in education and public safety.
Meeting Minutes
Key Motions & Votes
Motion: Adjourn the Board of Selectmen meeting at 6:35 PM. Outcome: Approved. Vote: Unanimous. (Timestamp: 1:11:42)
What's Next
School department principals must submit budgets by October 1st, with a preliminary budget expected from the administration in October. The groups agreed to reconvene in approximately two months as more budget information becomes available. A potential tri-town meeting with all three school committees, finance committees, and boards of selectmen may be scheduled for late January similar to last year's process.