AMHERST — Some members of the Town Council have met the idea of increasing municipal revenue through a Proposition 2½ tax-cap override with a cool reception, though officials acknowledge limited options for immediately addressing an ongoing $1 million structural deficit.
In a conversation among the Town Council, Finance Committee, School Committee, Library trustees and Budget Coordinating Group Monday, participants suggested that Amherst will need to grow revenue without putting more burdens on taxpayers. The discussion took place following a fiscal outlook presentation last month and in advance of fiscal 2028 budget projections.
A structural deficit occurs when the town’s ongoing expenses consistently exceed its recurring revenues, creating a budget gap that cannot be closed without raising additional revenue, reducing spending or both.
While ideas such as developing the Hampshire College campus and getting the state to increase its payment-in-lieu-of-taxes rate on state-owned land could address this annual shortfall, none would provide relief as fast as a successful override.
But Council President Mandi Jo Hanneke said she feels that even if councilors asked for an override, it wouldn’t be successful, and she’s not ready to pursue a measure that could lead to divisiveness at a time when some residents are already complaining that their taxes are too high.
“While it is one way to increase revenues, I guess I feel like it wouldn’t pass,” Hanneke said.
District 4 Councilor Jennifer Taub agreed, observing she doesn’t see a lot of groundswell for higher taxes, as property taxpayers are already seeing a substantial increase related to the cost of building a nearly $100 million new elementary school.
“I think that would be a huge ask of the community,” Taub said.
District 5 Councilor Sam MacLeod, too, said an override would be a hard sell, and the town has to find a way to live within its means.
“I think it would impact all of those on fixed income and those who are struggling with home ownership or rent right now,” MacLeod said.
District 3 Councilor George Ryan, though, said an override is something town officials have the most direct control over and property taxes remain the most significant source of revenue. Under such a proposal, voters would get to decide which services they want.
“I’m not saying this is leading my list of strategies, but on the other hand, let’s be realistic, this is our major source of revenue,” Ryan said.
In recent years, the town has balanced its budget through new growth, including the construction of mixed-use buildings downtown and developments like Olympia Place. But that residential building, and the one under construction next to it, burned down last year, costing the town significant revenue. New growth for fiscal 2028 is still projected at $650,000.
District 2 Councilor Lynn Griesemer said the Finance Committee is talking about reviewing existing programs, with concerns that there are more “for rent” signs on both homes and apartment complexes, and that vacancies have grown.
Taub suggested that developers may feel the town is tapped out for these types of developments, especially if there are fewer doctoral and international students studying at the University of Massachusetts.
The idea of regionalizing services, including schools, as a cost-saving measure is also a possibility.
Amherst School Committee Chairwoman Deb Leonard, though, said this would be complicated without closing a school and, based on her conversations with officials in the other regional towns of Pelham, Leverett and Shutesbury, may not be practical.
The best way to bring in more revenue may be for cities and towns in western Massachusetts to pursue litigation to get better reimbursements from the state.
Ryan said emergency dispatch is another possible area for regionalization, though Town Manager Paul Bockelman said this can take a lot of coordination and time, pointing to the work done to provide paramedic-level ambulance service to Pelham, Shutesbury and Leverett.
District 5 Councilor Ana Devlin Gauthier asked about possibly regionalizing or collaborating on paving contracts, and if this could mean more efficiencies and less money. This, too, Bockelman said, is complicated and likely not feasible.
District 1 Councilor Cathy Schoen suggested the town has surplus property that could either be sold or put back on the tax rolls, much like the East Street School, which is being incorporated into an affordable housing development.
A partnership and new agreement with Amherst College could improve payments to the town, said District 2 Councilor Amber Cano-Martin. School Committee member Bridget Hynes said that could lead to something endowed that would be to the long-term benefit “so all boats are rising together.”
Hynes said she would be willing to pursue any avenues to help with the municipal budget.
“I will go anywhere or do whatever I can do to bring more money because the school budgets and the way we are running them are creating a lot of internal crises, honestly, that we wouldn’t need to have if we had more hands on deck,” Hynes said.
Finance Committee member Jeffrey Robert said the easiest thing might be to cut spending, observing that an idea offered by MacLeod to get $100 from each college student in town, or more excise taxes from their vehicles, is unlikely.
“We have to cut some spending somehow, or snap our fingers to get $100 from each student. I think we have a better chance of cutting spending than we do of getting that $100 from each student,” Robert said.
Hanneke, too, said the town will need to find a way to talk about long-term cuts, possibly as part of its goals for Bockelman. Griesemer said the Finance Committee is also interested in looking at where cuts could happen.
Still, Griesemer said the town is committed to investing in its roads and getting a new Department of Public Works building constructed.
