Norwell Faces $4.1 Million Override Request Amid Rising Costs
Town grapples with increased fixed expenses outpacing revenue growth
NORWELL - February 13 - Norwell officials are considering a $4.1 million override request to address budget shortfalls as the town faces rising fixed costs that are outpacing its annual revenue growth.
The Select Board and School Committee met to discuss the potential override, which would help cover increased expenses, particularly in health insurance and pension obligations.
Town Administrator Darleen Sullivan presented budget projections showing a significant gap between available funds and necessary expenditures for the upcoming fiscal year.
"We're looking at an override. We can't do level service here or the full school ask. And regardless, we're going to need an override," Sullivan said.
The town's revenue growth is limited to 2.5% annually, while fixed costs are increasing at a much higher rate. Health insurance costs alone are projected to rise by 14.28% next year.
Sullivan explained, "We have $1.870 [Million] additional revenues all in, and we have $2 million worth of fixed costs that have just hit us."
School Superintendent Matt Keegan outlined the impact on the school system if the override doesn't pass, stating, "We're going to be cutting around 1.8 [million dollars]. In order to stay, if next year the non-override budget is our budget this year, there's about 600,000 that's not positions that would come out. The rest are going to be positions."
The school department's override request includes funding for critical positions, such as an assistant special education director and additional nursing staff.
School Committee Chair Christina Kane emphasized the long-term consequences of not funding these positions: "If you have a child in, let's say, fifth grade or sixth grade right now who has some pretty big learning needs, but they can be supported by having these other elements of support staff or having a ratio of teachers to students that is reasonable enough for them to get what they need, that's one thing. If they don't, those couple of years that they're going to go through where they don't have that, it will have lifelong effects."
Select Board members expressed concern about the impact on residents, particularly those on fixed incomes. Board member Andy Reardon said, "I also am concerned, as I typically am, of the increase of taxes on some of our more fragile residents."
The town is facing what Sullivan called a "perfect storm" of financial pressures, including the final years of a pension funding schedule and unprecedented health insurance cost increases.
"Between the pension funding schedule, last five years and those increases that are putting a lot of pressure on the budget and the health insurance trends that are going on now, this is a perfect storm that we have. The town has not been up against these type of budget pressures as far as I can see," Sullivan said.
Officials are working to finalize override numbers and prepare two budget scenarios – one with the override and one without – to present to voters.
The Select Board aims to make a decision on the override request by March 5, with public forums planned to educate residents on the financial situation and potential impacts.
John McGrath, chair of the Advisory Board, suggested the town consider a long-term strategy for overrides: "Are we going to tell the town, hey, every year we're going to be asking for small increments or are we going to say let's have a more definitive plan of we are going to ask for an override and we're not going to ask for another override until 2029."
As the town grapples with these financial challenges, officials stressed the need for clear communication with residents about the reasons for the override request and the potential consequences if it doesn't pass.