Justin Evans
Express correspondent
Halifax is grappling with significant budget constraints for fiscal year 2026, with town officials projecting minimal new growth and substantial increases in education costs.
Town Administrator Cody Haddad presented the fiscal year 2026 budget overview during a recent Finance Committee budget forum, highlighting the challenges facing the town.
“What we saw for fiscal 26 was we have little to no growth in Halifax anticipated for the year,” Haddad says. “We’re confident we’re not going to get $100,000 in new growth for fiscal 26.”
The town is projecting only $75,000 in new growth for the upcoming fiscal year, a dramatic decrease from the more than $300,000 seen five years ago. This decline in growth significantly impacts Halifax’s ability to fund services and capital projects.
Education costs represent the largest increases in the town’s operating budget. Halifax Elementary School’s budget is increasing by 11.63%, amounting to $793,675, while Silver Lake’s assessment is rising by 5.6%, or $455,530.
To balance the budget amid these challenges, town officials plan to use $745,000 in free cash to subsidize the operating budget, despite recommendations against this practice from the financial team.
“That was not recommended by myself and our financial team,” Haddad explained. “The town relies on the free cash to fund capital items, and without that, we would not be funding all of our capital items. It also creates a fiscal cliff in fiscal 27.”
The total recommended budget for fiscal year 2026 stands at $31,380,584. Town departments, including public safety, general government, and highway, make up 26.4% of the total operating budget. Insurance and benefits account for 12.6%, while the elementary school represents 24.27% and Silver Lake comprises 27.36%.
In addition to using free cash, the town is implementing various cost-cutting measures. These include removing a new ambulance, a police cruiser, and repairs to the blacksmith shop from the capital plan. Staffing reductions will affect the administration and Selectman’s office, building maintenance, and the library.
Halifax Elementary School has also had to make several reductions from its initially requested budget.
The town’s revenue picture shows the tax levy accounting for 65% of total revenues at $20,401,342. Local receipts, including motor vehicle excise tax, marijuana income, and meals tax, are estimated at $2.731 million, representing 8.7% of revenues. State aid is projected at $4.861 million, or 15.5% of revenues.
Haddad notes that state aid, particularly around education, is not being provided at appropriate levels. “We’re not being reimbursed or given the aid at levels that we should be,” he says.
Fixed costs are also putting pressure on the budget. Plymouth County retirement is increasing by nearly 8%, amounting to $150,000, while group insurance for health coverage is rising by 8%, adding almost $100,000 to expenses.
Public safety departments are maintaining essentially flat budgets from fiscal year 2025 to 2026, with some line-item adjustments. The police department is seeing savings due to senior officers retiring and being replaced by new officers at lower rates.
The town is also facing new expenses, including required PFAS testing for the town-owned landfill. This testing will cost approximately $10,000 annually for the foreseeable future.
“We were notified by DEP in late 2024 that we were going to have to start conducting this PFAS testing,” Haddad explains. “We had not previously been required to do that.”
Another notable increase is in the Veterans Agent salary, which is rising by $11,500 to meet state requirements. The state recently mandated that veterans’ agents must work at least 20 hours per week to maintain accreditation for processing veterans’ claims.
The legal account is increasing by $30,000 due to anticipated litigation regarding MBTA zoning compliance issues and upcoming negotiations with five of the town’s seven unions.
Haddad emphasized that unlike households, municipalities have limited flexibility in reducing costs. “Unlike at home, where if you want your heating bill to be a little bit lower because you need to penny pinch a little bit this month, you can turn down your thermostat and throw on a sweatshirt… We don’t have that flexibility within a municipality.”
The town plans to hold another budget forum on May 5, a week before town meeting, to provide residents with additional information and answer questions about the fiscal year 2026 budget.