Kingston officials are projecting the need for a Proposition 2 ½ override of just under $1 million for the fiscal year 2027 budget, according to a five-year financial forecast presented during a joint meeting of the Board of Selectmen, School Committee, and Finance Committee.
Town Administrator Keith Hickey outlined the challenging financial landscape facing the town, which narrowly avoided an override last year by finishing with only $3,000 remaining in excess levy capacity.
‘Fiscal 27 is going to be a challenge, certainly,” Hickey said during the meeting. “We started ‘fiscal 26 when the budgets were approved of excess levy capacity of $1,775. So we spent almost every penny we had.”
The projected override amount drops significantly in subsequent years, with fiscal 2028 requiring only $209,000. The forecast shows excess tax levy capacity returning in fiscal years 2029 through 2031, ranging from $394,000 to $1.1 million.
The town’s financial challenges stem largely from limited new growth due to the recently lifted water moratorium. Hickey estimates new growth of about $1 million for fiscal 2028, maintaining that level through fiscal 2029 before declining in outer years.
“New growth, as I think everybody’s aware over the last couple years, has really slowed because of the water moratorium,” Hickey explained. “We expect that to start to pick back up now that the water moratorium has been lifted.”
The forecast assumes annual increases of 4.5% for state receipts and 2.75% for local receipts. Town wage increases are projected at 2% for fiscal years 2027 and 2028, then 3% for the following three years, with operating expenses increasing 1.5% annually.
School Committee member Jeanne Coleman highlighted additional budget pressures facing the district, particularly the loss of $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 regional budget challenges. “Just knowing that, I think, in good faith, we can say, I think we need to have the honest conversation that in order to have a level service budget, we’re going to be looking at an override this year.”
The school department has already implemented an earlier budget timeline to address concerns about meeting town deadlines. Director of Finance and Operations Sarah Hickey said preliminary budgets from principals were due Oct. 1, with the goal of delivering a votable budget to school committees in December.
“Superintendent Proulx and I met in July to go over the budget timeline and we changed the budget timeline for this year because I knew that timeliness of the budget process was going to be crucial,” Sarah Hickey said.
Board of Selectmen Chair Eric Crone emphasized the importance of early communication about potential overrides, drawing from the town’s experience with previous budget challenges.
“If we do need an override this coming year, it might pass one year, but it’s not going to pass multiple years in a row,” Crone said. “So we’re going to have to look at a potential strategy of putting in enough money that would last just a couple of years or more.”
Selectman, and former Finance Committee member, Carl Pike stressed the need for realistic budget numbers and careful public communication about any potential override.
“I firmly believe that we’ll very apt to have to go to the town for a Proposition 2 ½ override,” Pike said. “But I don’t want to get everybody excited at an unrealistic number.”
Pike noted that while schools might successfully sell a $2 million override, larger amounts would face greater challenges with voters.
The town faces additional departmental requests beyond standard budget increases. Keith Hickey said the police department continues seeking additional staffing to meet community needs, which would require supporting supplies and equipment.
Officials acknowledged the complexity of budget planning given uncertainties in state aid, special education costs, and regional transportation funding.
“There’s so many things we don’t know like the schools,” Crone said. “You guys don’t know what the federal and state aid looks like for anything. Regional transportation, special ed. These things go up and down.”
The school department’s challenges include ongoing contract negotiations with both teachers and support staff, adding another variable to budget projections.
Finance Committee member Marsha Meekins noted the importance of explaining the rationale behind any override request to voters.
“I don’t think it’s just the amount. I think it’s also why,” she said. “I think the why part is probably the most important part of selling anything.”
The town has experienced mixed results with override attempts in recent years. School-related overrides have generally passed, while other municipal requests have faced more difficulty.
Officials plan to continue meeting throughout the budget process to refine projections and coordinate messaging. The forecast represents a living document that will be updated as more information becomes available about state aid and other revenue sources.
The town’s annual meeting timeline may also face scrutiny, as school officials consider requesting changes to budget submission deadlines to better align with state aid announcements and regional district requirements.
Hickey, who recently accepted the Town Administrator job in Fairhaven, emphasized the importance of maintaining communication between the three boards involved in budget decisions.
“I think it’s important for all the three boards to understand what’s happening and have that line of communication be maybe a little bit better than it has been in the past about what the challenges are,” he said.