SOUTH HADLEY — Fearing a large number of students may continue to choice out of the school district next year, the town’s Appropriations Committee this week agreed to recommend using $1.5 million in free cash to preserve school sports, extracurriculars and academics.
At a joint meeting with the Appropriations Committee and Select Board on Tuesday, municipal leaders also discussed waiting until November to issue a $3.5 million Proposition 2½ override rather than asking residents to vote again in June not long after they resoundingly rejected overrides of $9 million and $11 million on April 14.
The extra time would give officials a chance to examine cost-saving measures, such as conducting department audits, examining fees, certifying vocational programming and awaiting free cash certification from the state. That work would begin to show residents the town is doing its due diligence when it comes to the budget, they reasoned.
“We are willing to do everything we can to roll up our sleeves to continue to earn people’s trust and invest in this town,” Town Administrator Lisa Wong said.
Should the Select Board agree to dip into the town’s rainy day fund at a meeting on Tuesday, the extra $1.5 million would bring the total fiscal year 2027 budget to about $61.4 million. There is currently $4.78 million in the town’s free cash account. The board can amend warrants and opt to not follow through on the Appropriations Committee’s recommendations.
The schools need $1.25 million for a level-service budget, which would enable the district to keep five high school teachers, three top administrative positions and maintain school activities including extracurriculars.
Superintendent Jennifer Voyik said the additional $300,000 would go toward support services and lowering class sizes. The funds could also create a vocational director position to certify and expand the high school’s four vocational programs, which could result in higher state aid reimbursements.
“The reason [families] are going to other districts is the smaller classes sizes that those districts are committed to keeping,” Voyik said.
Voyik said she would consult with school administration team and the School Committee to identify the most effective strategic investments for reversing the school choice deficit of $3 million.
Down the drain
Initially, Appropriations Committee members were apprehensive about awarding the schools money for strategic investment.
Joel Prough asked for a cost-benefit analysis of any extra positions before agreeing to recommend the funds, while Julie Gentile said the vocational director was too new of an idea to support. This approach, member John McCarthy pointed out, is the antithesis of the town’s previous philosophy toward free cash.
“I’m very apprehensive about adding a position ,” Select Board Chair Jeff Cyr said. “I think the level funding is the better way to go currently. Anything that added to the schools effects [other post-employment benefits] and long-term effects us as well on the health insurance side.”
However, Wong said that trend data shows a level-funded school budget will result in a net loss of $300,000 each year because families are choicing out of South Hadley with the current services. It is a financial risk, she admits, but one that could save the town hundreds of thousands of dollars.
“We’re using our reserves to fund the schools, not only at level funding but strategically adding positions to stop the bleeding in the schools,” she said. “It’s a strong statement from all of us, but we are also saying we need a strong statement from the town itself.”
Appropriations Committee member Tom Terry pointed out that the free cash account is projected to replenish about $3.8 million next fiscal year, based on high investment returns over the last year. Even if the town uses free cash to fill in the operation budget, fund capital items and pay for snow and ice, the account is expected to rebound to around $4.8 million in fiscal 2027.
“It’s not like we’re spending free cash down to nothing and we’re not spending it with our eyes closed just hoping there will be some relief next year,” Terry said.
Looking ahead
The free cash infusion will not avoid another override vote, Wong said. The free cash is a temporary fix, “but we still need an operation.”
Should the additional money be added to next year’s budget, other town departments would still face staff reductions, reduced hours at Town Hall, and potential desertification of the public library.
While Voyik appreciated the extra funds, her biggest concern is the sustainability of the budget. One-time funds only last one year. “We can make those investments, but we would have to be able to sustain them along with finding those revenue sources as part of these investments,” she said.
However, both Select Board and Appropriations Committee members were skeptical that another override vote in June would pass.
“I don’t think you are gong to get it [the override passed] if you have a budget that is satisfied for the schools in May and then they turn around in June and decide to do an override,” Appropriations Committee member Jim Everett said. “I don’t think it has a chance of passing once people realized we don’t need it (now).”
Residents echoed Everett’s concerns and suggested several cost-saving measures to pursue between now and the midterm election. Carlene Hamlin suggested sharing payroll between town and school departments and joining the Central Hampshire Veterans’ Services District. Raising Town Clerk fees and selling town property have also not been explored, resident Ashley Crawley said.
“I think the results of the election were really clear,” she continued. “Most residents support a $0 override, and they are begging you to reassess your spending priorities and reallocate non-essential funding to the students.”
Wong said the town will continue to explore all options, but years of cuts have whittled away the capacity to initiate new programs. If the residents want their municipal government to find cost-savings, they will eventually have to invest with higher taxes.
“My job is on the chopping block.” she said. “Everything is on the potential chopping block, but there is consequences. If you’re looking at eliminating a position to save that amount of money every year, at the end of the year you might be saving $100,000 but you’ve lost the ability to save a million.”
