SOUTH HADLEY — About a week before residents decide on a big Proposition 2½ override to prop up the town and school budgets over the next few fiscal years, Mount Holyoke College announced Wednesday that it is committing $3 million spread across the next decade in support of the public school system, students and Fire District 2.
Mount Holyoke describes its new commitment as an expansion of its long-established investment in the town. In addition to being the town’s largest employer with 1,236 staff and its third-largest tax payer, the college says its existing contributions to South Hadley exceed $1 million annually through taxes, cash and in-kind donations and other forms of support.
The 10-year commitment includes $2.2 million that combines direct financial contributions to South Hadley Public Schools with scholarships for qualified South Hadley students admitted to the college, an annual financial and in-kind contribution to the Michael E. Smith Middle School Washington, D.C. trip, and $800,000 in additional support for Fire District 2, which covers the campus.
“These investments align with our educational mission,” Mount Holyoke College President Danielle R. Holley said in a statement. “South Hadley’s vitality is deeply connected to the College’s own future. This commitment reflects our belief that strong schools and a thriving community benefit everyone.”
More detailed discussions on the breakdown of contributions and potential nonfiscal collaborations, such as students engaging with Mount Holyoke faculty, will be discussed at a later date, Mount Holyoke College spokesperson Christian Feuerstein said.
“[We] look forward to this being a start to a long term and mutually beneficial relationship,” Town Administrator Lisa Wong said. “I appreciate that the college recognizes the importance of education and will find ways to continue to support our public schools.”
Similar to past donations from the college, Fire District 2 Chief Ryan Moore said the funds will go to capital costs like ambulances and equipment. This will help offset costs and lower the burden on taxpayers in District 2.
“The college understands that the investment in us is an investment in themselves,” Moore said. “We appreciate the contributions and look forward to keeping the relationship close for years to come.”
Next week, on April 14, residents will head to the polls to weigh override requests of $9 million or $11 million to help cover a $3.5 million deficit projected to worsen in the years ahead. The two-part question gives voters a chance to approve one, both or neither override. If either passes, town leadership plans to incrementally increase taxes over a four- or five-year period before residents see the full permanent rise in taxes go into effect.
Based on a tax override calculator on South Hadley’s town website, the average single-family home valued at $417,000 would pay an additional $1,443 in property taxes with a $9 million override, or $1,764 with an $11 million override by fiscal year 2031. This calculation does not include the annual 2.5% tax increase communities can automatically adopt, nor does it break down the incremental increases seen each year.
If the override fails, South Hadley will see sizable slashes to services and staff on July 1, the start of fiscal 2027. The budget approved by the Select Board on March 4 included reductions to staff in every town department, reduced hours at Town Hall, closed spray parks and potential desertification of the public library. On the school side, all funding for sports and extracurricular activities would be lost, as well as 15 student-facing positions.
While the override is the most immediate step to address the deficit, a Budget Task Force recently rolled out a series of recommendations that its members believe will help return the town to financial stability in both the short- and long-term. Among the recommendations is the creation of an economic development plan and launching of a payment-in-lieu of taxes (PILOT) program for tax-exempt properties such as Mount Holyoke.
The anticipated $3 million contribution is not a part of any PILOT agreement, Wong said, but rather developed by the college with some town input. The Select Board approved the PILOT policy in March and amended it during an April 7 meeting. Under the policy, nonprofits can agree to voluntarily contribute at least 25% of their full tax levy, or 15% if the property tax is valued under $2 million.
Under a PILOT agreement with a 25% contribution, Mount Holyoke College would contribute $697,000 a year. In June 2024, the college’s endowment stood at $1.1 billion.
In its announcement Wednesday, Mount Holyoke officials said they will partner with town and school district leaders through a joint working group to combine financial investment with Mount Holyoke students, faculty and staff engagement to expand academic and student-life opportunities for students in South Hadley’s public schools.
“By strengthening the experience of South Hadley students, the initiative will support student retention and enrollment stability in SHPS, which are key to the long-term health of the school system and the broader community,” the college said in a statement.
The college also notes its current investment in the community, including the payment of $382,557 in property taxes in the 2023–2024, along with sewer fees. The college pays taxes on properties outside of the central campus, including The Orchards Golf Course, Village Commons and off-campus housing.
Additionally, Mount Holyoke spends $5 million each year with local vendors, has awarded $183,645 in scholarships for five South Hadley residents accepted to the college, and donated another $12,000 for various programs including a police comfort dog for the Police Department, ValleyBike program and other nonprofit groups.
Mount Holyoke has also supported local infrastructure and public safety investments, including a $400,000 contribution toward a new ladder truck and ambulance for both South Hadley Fire District 1 and 2 respectively, and $35,000 toward the River to Range Trail Loop near the Community Boat House.
Other benefits include providing community access to campus resources and programs, including public lectures, concerts, performances, exhibitions and athletic events, most free of charge, as well as access to the Williston Memorial Library and select athletic facilities. The outdoor track is also available to South Hadley residents at designated times.
