Finance Committee Sees ‘Rocky Road Ahead’ for Amherst Budgets

Twenty-five Page Report Highlights Budget Concerns
May through early June is crunch time for the seven members of the Amherst Finance Committee (FinCom).  In nine meetings between May 6 and June 3 the group met with managers representing all town departments, seeking to understand the challenges imposed by FY26 budget constraints, single out problem areas, and gauge the outlook for the future.

Their findings are presented in the 25-page Finance Committee Report on the FY26 Budget.  This late draft is a collaborative effort by all members of the committee and is recommended reading for any resident interested in how Amherst prioritizes and pays for town services.

Public School Funding Remains a Source of Tension
When the Town Manager’s recommendation of a 4% increase over FY25 funding levels across the three divisions of local government – schools, library and general government – was found to require deep cuts in public education staffing, the Amherst-Pelham Regional (ARPS) and Amherst Elementary School Committees pushed back and voted to recommend a 4.8% increase for the regional schools and 6% for the elementary schools.

By directing $269,704 from free cash to the elementary schools and reducing the percentage of tax revenues earmarked for capital projects from 10.5% to 10.26% and allocating it to the regional schools, the town has been able to present a budget that meets the 4.8% increase requested by the regional schools and increases elementary school funding by 5%.

This compromise budget is projected to result in staffing reductions of 8.11 FTE in the elementary schools and 11.51 FTE in the regional schools for FY26.

The budget report makes clear that the Finance Committee feels that the per pupil costs for the Amherst schools are inordinately high.  Councilor Mandi Jo Hanneke compiled a table from Massachusetts Dept. of Secondary Education (DESE) data for FY23 that shows Amherst per student costs to be significantly higher than at 29 other similarly sized schools.

During their June 3 discussion, Bernie Kubiak observed that Amherst’s high per pupil cost may be related to the number of special needs and ELL students in the school system.

The FY26 Budget Report also stresses that the $269,704 increase for elementary schools is a one-time use of cash reserves and does not add to the base amount upon which the FY27 increase will be calculated.

In a May 29 letter to finance director Melissa Zawadski, Amherst School Committee chair Jennifer Shiao acknowledged that town funds available to the school will be limited in FY27, but maintained that it is not the role of the Town Council to question how the school district spends the schools’ allocation.

Road Maintenance and CRESS Concerns Cited
The condition of Amherst’s roads has been a frequent target of resident complaints, and so the town’s plan to fund road repairs has garnered attention.  The FinCom report notes the absence of information in the Town Manager’s Budget indicating how much state aid for road and sidewalk improvements (known as Chapter 90 funds) Amherst received last year or can expect to receive in FY26. In recent years this revenue projection has been more than $800,000.

FinCom observes, “The [town budget book] references CH90 as an important element, but fails to show the amount received in FY25 or projected for FY26. It is important to show the trend and inform the public that there will be at least $800,000 more in state aid for roads and sidewalks in FY26.”

The Finance Committee report raises concern over support for Amherst’s fledgling Community Responders for Equity, Safety & Service (CRESS) department.  Two CRESS staff vacancies have been frozen and the FY26 CRESS budget of $513,039 represents a 19.7% decrease from FY25.  The CRESS Implementation Manager position is also in jeopardy as it relies on a state grant that may not be renewed in FY26.

Public Safety in general is suffering from budget restrictions.  The town’s fire and police departments each have a position frozen, with the fire department sometimes needing to call in student firefighters.  “All three elements of public safety in Amherst are in crisis,” the FinCom report concludes.

Capital Plan Predicts $2M Annual Deficits
The Finance Committee identified two main critiques of the town’s Capital Improvement Plan, the first being the previously mentioned omission of information regarding state aid for roads and sidewalks.

The second criticism is that the capital plan is not balanced.  “FY27 through FY30 all show deficits of $2 million or more,” the report notes.  The committee recommends that the Town Manager remove less urgent projects that will require grants to be affordable.

“The plan needs to be more realistic given pressing needs for infrastructure (buildings, roads), conversion of vehicles to hybrid or electric, and the onset of building projects,” they state.

The report raises questions about planning for the Jones Library renovation-expansion project.  A year ago, the 5-year capital plan projected that debt repayment for the library project in FY26 would total $1.1 million.  The current 5-year plan estimates $85,495 to be spent in FY26 – a significant decrease that helped allow capital funds to be diverted to regional school operations.  Such flexibility is unlikely in FY27 when the library project is estimated to require a debt repayment of $1.3 million.

The town explained that the FY26 discrepancy resulted from “a new analysis of the flow of funds.”

The Finance Committee calls attention to the difficulty in planning for the cost of the library project.

“The renovation and expansion project remains in flux, with no updates provided in this document regarding final cost changes for the slate roof or other elements although a contract has been signed. The project’s uncertain status continues to impact planning, particularly regarding space rental and expected cost savings.”

A ‘Rocky Road Ahead’
The FY26 Budget Report does not mince words when describing the outlook for the town budget in FY27 and beyond, warning of a “rocky road ahead.”

“Looking forward, FY27 and future years will likely be even more challenging. Payroll, supply expenses, and benefit costs are all rising faster than the 3 to 3.5% projected increases in revenues,” the report states. 

“Absent a significant increase in state support or a reduction in services, FY27 will be a very difficult year for Amherst.”

Nevertheless, Amherst needs to submit a balanced budget to the state by June 30.  Despite “evidence across departments of staffing concerns,” and two dissenting votes, the Finance Committee recommends that the Town Council approve the FY26 budget as presented.

Adoption of the FY26 budget is on the agenda of the June 16 meeting of the Amherst Town Council.