Whitman Faces $2.2 Million Budget Deficit, Officials Consider Override Options
Town weighs one-year versus multi-year approach as financial challenges mount; implements soft hiring freeze
WHITMAN - February 25 - Whitman officials are grappling with a $2.2 million budget deficit for the upcoming fiscal year, prompting serious discussions about a potential override to maintain town services.
During a joint meeting of the Select Board and Finance Committee on Feb 25., town leaders debated whether to pursue a one-year or multi-year override approach to address the financial shortfall.
"The budget indicates that an override is definitely necessary to maintain level services," said Shawn Kain, who presented the budget review.
The deficit stems from several factors, including a significant 11% increase in Plymouth County retirement costs amounting to $363,000 and a 7% rise in medical insurance expenses. The Whitman-Hanson Regional School District assessment is also up 9.65%, adding $1.8 million to the town's financial burden.
Town Administrator Mary Beth Carter emphasized the need for strategic financial planning, particularly regarding capital expenses.
"Our financial system for collections, treasury, accounting is end-of-life or beyond end-of-life. We need a new system," Carter said. "The fire chief has been talking about a new fire engine to the tune of $1.5 million."
The Select Board appears to be leaning toward a one-year override approach rather than a multi-year plan. Kain expressed his preference for a smaller, one-year override.
"I think we should have a small override that's one year that we show the public how we're sacrificing as well. If we're going to ask them to sacrifice, then they can see the sacrifices that we're making," Kain said.
Select Board Chair Carl Kowalski, who initially favored a multi-year approach, indicated he now agrees with the one-year strategy after hearing more details.
Justin Evans, however, maintained his support for a multi-year override. "I still think a multi-year is probably the right approach. Sort of for the 'you only get one bite at the apple' idea," Evans said.
The officials plan to develop scenarios for both one-year and multi-year overrides to present at their March 25 joint meeting, followed by public forums in April to educate residents about the financial situation and override options.
"We need to show them what would happen in either case," Kowalski said regarding the importance of presenting both scenarios to residents.
The board also approved a soft hiring freeze as a precautionary measure, given the uncertain budget outlook. The freeze requires approval from both the town administrator and the Select Board chair to fill vacant positions.
"If right now we've got a couple of positions vacant... why hire someone now if you're going to let them go in June?" Evans explained. "It would be tough to hire someone knowing that they may only be here for a short period of time."
Finance Committee Chair Kathleen Ottina expressed satisfaction with the timing of override discussions this year compared to last year.
"The problem that the Finance Committee had last year in supporting the recommendation of the town administrator... the discussion of the override came too late," Ottina said. "This year, we have a much longer time to educate the public on the need, and everybody has something at stake."
Officials are considering using free cash strategically to address some financial challenges. The town's free cash has been certified at over $2.2 million, and Kain suggested allocating 10% to 15% to capital stabilization and another 10% to 15% to general stabilization.
Carter and Kain also recommend using $200,000 from free cash to offset the Plymouth County retirement assessment and $140,000 to fund the annual OPEB (Other Post-Employment Benefits) contribution.
"The Plymouth County retirement pension liability is due right now. It was out to 2030. They extended it one year last year," Carter explained. "When that does [end], 90% of our cost, 95, will go away and we'll just have normal costs."
The officials plan to formalize these financial policies in writing at a future meeting.
In other business, the board heard a presentation from Amanda Sandoval, director of prevention and communication services at High Point Treatment Center, about Whitman-Hanson Will, a coalition focused on substance use prevention in the community.
Sandoval detailed various initiatives including a peer mentor program where high school students educate sixth-graders about brain development, mental health, self-confidence, and addiction prevention. The program has expanded to include Portuguese-speaking students.
"We identified a need, and we were able to really support that need for those students, and now they have that information," Sandoval said.
The coalition is hosting a community meeting on March 18 at 6 p.m. at the high school to share information about prevention work in the community.
The Select Board will meet again on March 11 for a regular meeting and on March 25 for another joint meeting with the Finance Committee to further discuss override options.
Disclosure: South Shore News founder Justin Evans is a current member of the Whitman Select Board.