Halifax Faces Budget Challenges, Prepares for MBTA Zoning Vote

Town officials anticipate deficits, explore cuts for fiscal year 2026

HALIFAX, MA - October 22 - Halifax officials are bracing for significant budget challenges in fiscal year 2026, with limited new growth and increased fixed costs expected to strain town finances. The Board of Selectmen and Finance Committee met October 22 to discuss the looming fiscal hurdles and prepare for a special town meeting vote on MBTA zoning changes.

Town Administrator Cody Haddad presented a sobering financial outlook for the upcoming budget season.

"Fiscal 26 is going to be the start of a challenging couple of years for the town," Haddad said. "When you look at new growth projects that we have coming down the line, it's limited."

New growth, which includes additions to the tax levy from renovations and new construction, is projected to be around $80,000 for fiscal 2026. This marks a substantial decrease from previous years when new growth reached approximately $300,000.

The town anticipates about $675,000 in new revenue for the next fiscal year, representing just 2.3% of last year's operating budget. This modest increase is expected to be quickly consumed by rising fixed costs.

"Plymouth County retirement assessment for fiscal 26 the other day, it's an 8% increase, right, from $1.9 million to over $2 million," Haddad explained. "That's something we can't change that, we have to fund that."

Health insurance costs are also projected to increase by 8% to 10%.

To address the potential shortfall, town departments have been asked to prepare level service budgets and identify potential 10% cuts in their spending.

"Based on projections, we're facing a deficit, a significant deficit, which means we will likely have to implement several of these cuts," Haddad said.

The school budget remains a significant variable in the town's financial planning. The Silver Lake Regional School District's use of one-time funds to balance its budget last year is expected to create additional pressure on Halifax's finances in the coming year.

"Between those two areas, we need to make up those one-time fund increases this year on top of whatever increase they make," Haddad said. "That's really driving the budget this year."

Finance Committee Chairman Jim Walters expressed concern about the timeline for receiving budget information from the school department.

"It's 51% of our budget. So, you know, that's going to be the, you know, that's a real problem," Walters said.

Haddad assured the committee that school officials have committed to providing preliminary budgets in January, earlier than in previous years.

In other business, the Board of Selectmen and Zoning Bylaw Review Committee discussed proposed MBTA zoning changes set for a vote at a special town meeting Dec. 16.

The committees agreed to remove a provision requiring 10% affordability for new housing developments in the proposed MBTA zoning district. They opted to maintain allowances for mixed-use development in the area.

"I would hate to limit us," said Selectman Jonathan Selig. "Again, if anything's built at all, right? But if something did manage to get built, I would hate to short sight that by eliminating that mixed use potential."

The Planning Board will hold a public hearing on the revised MBTA zoning proposal Nov. 7 at 6 p.m. in the Great Hall.

In other news, the town received two grants to support future projects. A $25,000 grant from the Taunton River Watershed Alliance will fund an investigation of culverts on Stump Brook, aimed at improving fish migration and stream health.

Additionally, a $50,000 grant from the Department of Energy Resources will support engineering studies for potential electrification and air conditioning improvements at Halifax Elementary School.

"This is a $50,000 grant, so it will not cost the town anything, but will open us up once complete to potentially millions of dollars of grant funding to actually do the project when the time comes," Haddad said.

The Board of Selectmen's next meeting is scheduled for Nov. 6 at 6 p.m., moved from the original Nov. 5 date to avoid conflicting with Election Day.