AMHERST — Initial projections for the fiscal 2028 budget indicate that spending increases may need to be more limited than in recent years.
In a financial indicators presentation to town, school and library officials Monday, Town Manager Paul Bockelman said that increases to the municipal and elementary school budgets, the assessment for the regional schools and the contribution to the Jones Library would be held to 2.75% across the board.
That is below the 3.5% increase provided in the initial budget forecast last year.
“We’re projecting a modest budget increase this year,” Bockelman said. He explained that this projection is based on the town underperforming relative to where it thought it would be in new growth in both fiscal 2026 and 2027.
Despite this, Bockelman said the town has been able to make progress on capital projects, such as the new elementary school, and has continued to complete renovations to town parks and recreation facilities.
Projections show $110.46 million in total spending, up 3.09%, or $3.31 million above this year’s $107.15 million budget. The increase is above the 2.75%, in part because three new firefighter/ paramedics are being hired. Their salaries will be paid for through the Ambulance Fund.
For the town, the budget would go up by $842,424, from $30.63 million to $31.48 million, and the elementary schools’ budget would rise by $813,961, from $29.6 million to $30.41 million. The regional schools assessment would increase by $561,956, from $20.43 million to $21 million, and the library appropriation would go up by $68,374, from $2.49 million to $2.55 million.
This would yield a $168,460 deficit, which Finance Director Sean Mangano said is manageable.
The Town Council will use this information to set financial guidelines before actual budgets are developed for the town, schools and libraries. A public forum on the budget takes place on Nov. 16.
At a Finance Committee meeting the day after the presentation, District 2 Councilor Lynn Griesemer said this projected increase would be among the lowest in the past decade.
“To me this signals so little room for wiggle room that it’s terrifying, to be honest,” Griesemer said. Even with the federal election potentially being favorable to Amherst and to Massachusetts, Griesemer said there will be continued reductions in federal money from H.R.1, the so-called Big Beautiful Bill.
District 1 Councilor Cathy Schoen said that expense increases, including contracted salaries, are already going to be beyond the 2.75%.
Mangano, Treasurer/ Collector Jennifer LaFountain and Comptroller Tonya Wdowiak outlined the uncertainties the town is facing, but Managno said the town will continue to meet commitments on capital funding, obligations for school buildings and maintaining an AA+ bond rating.
Mangano said the budget plan still includes 10.5% of the tax levy being dedicated to capital needs, including buildings and infrastructure, a 2% increase in the pension and health insurance, while there is no official estimate on health insurance yet.
Revenues are projected to be up 3.49%, including the 2.5% allowable property tax increase under the provisions of Proposition 2 1/2 and new growth of $650,000, which mostly reflects the Campus View project development at the corner of Amity Street and University Drive.
The financial indicators presentation outlined some other challenges, including that Amherst is getting less state aid, relative to its spending, each year. In fiscal year 2003, for instance, state aid accounted for 30% of the budget. That has declined to around 18%, Mangano said.
Mangano said this trend is also consistent with the 2021 and 2022 Student Opportunity Act funding, which invested hundreds of millions into school systems across the state, but nothing for Amherst.
“We got no new money from that,” Mangano said. He suggested the town advocate that the state’s Foundation Review Budget Commission change that formula.
Mangano said his biggest concern is “our benefits spending.” In 2017, pension and health insurance were around $12 million; that is now up to $20 million for these costs associated with both active employees and retirees.
