Whitman Faces $1.7 Million Budget Deficit, Weighs Override Options
Officials discuss potential tax increase to maintain services amid rising costs and uncertain revenues
WHITMAN - January 21 - Whitman officials are grappling with a projected $1.7 million budget deficit for the upcoming fiscal year, prompting discussions about a potential override to maintain current service levels.
During a joint meeting of the Select Board and Finance Committee, town officials reviewed preliminary budget figures and debated the merits of seeking a one-year versus multi-year override to address the shortfall.
The deficit projection does not include potential raises from ongoing union contract negotiations, raising concerns about the town's ability to maintain level services without additional revenue.
"Based on our current numbers, the preliminary budget numbers indicate that an override is necessary to maintain level services," said Select Board member Shawn Kain, who presented the budget analysis.
The $1.7 million gap stems from various factors, including an 11.32% increase in Plymouth County retirement costs, estimated 7% rise in health insurance expenses, and the use of free cash in the previous year's budget.
Officials noted that the Whitman-Hanson Regional School District is facing its own budget challenges due to declining enrollment and reduced state funding.
"Their enrollment is down, so that's definitely going to hurt when it comes to 'hold harmless', which means we're not looking to get more money from the state," Kain explained. A "hold harmless" school district currently receives more aid than the state formula says they should, so it continues to receive the greater value. Over time this means revenue growth is only coming from member towns.
The town is considering creative solutions to provide additional funding to the school district, including reallocating meal’s tax revenue, money previously used for OPEB (Other Post-Employment Benefits) liability.
Finance Committee members and Select Board officials debated the merits of pursuing a one-year override versus a multi-year approach.
Kain advocated for a shorter-term solution: "I'd like to have the smallest possible override that we could ask the people to consider, knowing that we're sacrificing, we're demonstrating our sacrifice and asking them to sacrifice in a way that's a complement to our own."
Finance Committee Vice Chair Mike Warner argued for a longer-term approach: "I would prefer a three-year. The reasoning for that is I would be concerned each of the following years that are coming up, we have to go back each year, we go through this each year to hope that they would go for another one."
Officials emphasized the need for clear communication with residents about the potential override and its impact on services.
"I think doing some real research behind the smoothest way that we can roll this out with the public so they can understand it and make a clean decision without being confused or whatnot, I think that would be very helpful," Kain said.
The town recently received an $80,000 grant from the state’s Community Planning Grant Program to support a smart growth and starter home zoning project, which could help attract young homeowners to the community.
The grant will allow the town to hire a consultant to develop 40R and 40Y overlay districts. Whitman was eligible for this grant as a compliant MBTA Communities town.
"I think one major difference and the feedback that I get from people in my own opinion is if we are attracting starter homes and young people who own the property, then you respect the property that you own as opposed to people who are renting in a big apartment complex with less respect for the community," Kain noted.
Officials plan to continue budget discussions and refine override proposals in the coming weeks. The Select Board and Finance Committee scheduled another joint meeting for Feb. 25 to review updated budget projections and discuss potential override scenarios.
The town must finalize its budget and any override proposals before the annual town meeting and subsequent town election, where voters would ultimately decide on any tax increase.
As discussions continue, officials remain mindful of the impact on residents, particularly those on fixed incomes. Resident Bob Kimball: "There are a lot of people out there that are going to find it very difficult to afford an override."
Disclosure: South Shore News founder Justin Evans is a current member of the Whitman Select Board.