Town Council Discusses Strategies to Deal with Anticipated Budget Shortfalls 

Report on the Joint Meeting of the Amherst Town Council, Finance Committee, Library Trustees, Budget Coordinating Committee, and Amherst School Committee, November 2, 2026

This hybrid meeting was held in Town Hall, broadcast over Zoom, and recorded.

This joint meeting of the Town Council, Finance Committee, Library Trustees, Budget Coordinating Committee, and Amherst School Committee continued the discussion that began at the October 5 Town Council meeting about the projected long-term budget shortfall. At that meeting, Finance Director Sean Mangano said the town’s expenses were growing faster than its revenues, requiring new revenue sources or expense reductions. 

According to Mangano, opportunities to increase revenues include responsible residential and commercial development, further school regionalization, advocacy for more state aid, a Proposition 2.5 override, regionalization of other services, and collaboration in collective bargaining. He said that decreasing expenditures could include seeking savings in employee and retiree benefits, consolidating building operations, and reviewing programs and services to determine if the town should still provide them. 

Councilors Have Little Appetite for an Override

Although town councilors offered several suggestions to increase revenues and decrease expenses, a Proposition 2.5 override for operating expenses was not among them. Council President Mandi Jo Hanneke (at large) stated, “Our property taxes are already very high, and they went up [for the elementary school debt exclusion override]. I guess I feel like it wouldn’t pass. And so, while it deserves to be on the list, I am not ready to pursue that.”

Councilor George Ryan (District 3) recommended focusing on what is in the town’s control, such as further regionalization of the schools and the public safety dispatch system. Town Manager Paul Bockelman said Amherst is exploring some regionalization of dispatch, but smaller towns are reluctant to cede dispatch to Amherst, and there would be no financial incentives for towns that currently use the state police, such as Pelham, to take over dispatch calls. 

Councilor Ana Devlin Gauthier (District 5) suggested coordinating road repair with neighboring towns, but Bockelman did not think that would save money.

Councilors Sam MacLeod (District 5) and Cathy Schoen (District 1) stressed the possibility of new development, with Schoen highlighting surplus town property at the South Amherst and Wildwood schools. At the Wildwood site she envisioned a senior center on the first floor with senior apartments on upper floors. 

MacLeod also recommended pursuing more Payment in Lieu of Taxes (PILOT) for land owned by UMass and Amherst College. Amber Cano-Martin supported this suggestion and also thought the town should collect excise taxes on college students’ cars by requiring them to be registered here. She also advised adding solar panels on the roofs of town buildings and over parking lots to reduce energy costs.

Councilor Lynn Griesemer cautioned about overdevelopment, noting that several apartment complexes had For Rent signs. She advised reviewing existing municipal programs to decide whether to continue them and carefully considering the costs of large projects and their long-term impact on town finances.

Councilor Jill Brevik (District 1) questioned how the town can have a multi-million-dollar surplus every year and then talk about running a deficit. She recommended less conservative budgeting and using the surplus to fund excess capital expenses.

While several councilors mentioned encouraging new growth in town, Jennifer Taub said new development is not entirely in the town’s control. Resident Finance Committee member Jeffrey Robert asked why developers do not seem that interested in building in Amherst, and Brevik suggested that the council issue a statement about its stance on development.

In addition to further regionalization, Amherst School Committee (ASC) chair Deb Leonard noted unequal state support for schools in western Massachusetts compared to eastern Massachusetts schools. She also worried that more regionalization would increase transportation costs and school bus ride times, as well as ceding local control of schools. Bridget Hynes suggested bringing transportation in-house to reduce costs. Councilor Pam Rooney (District 4) wanted the state to reconsider its charter school reimbursement formula, which costs local school districts millions of dollars.

MacLeod concluded, “We need to live within our means.” 

Hanneke said that this discussion will continue as the town creates Budget Guidelines.

Projections for the FY2028 Budget

The town Finance Department projected a modest increase in the operating budget for FY28. Mangano said local receipts were lower than expected and that new growth is “tepid.” He affirmed the commitment to the capital projects (elementary school, Jones Library, DPW building, and new fire station) and to accelerated road repair, while maintaining reserves and a 10.5% contribution to capital projects. The town has 45% of the $30 million needed for a new fire station in the capital stabilization fund. 

The early estimate is a 2.75% increase for each department, but Mangano said that this will most likely increase. 

He reiterated the town’s many accomplishments with the new elementary school, the redoing of the North Common and the Kendrick Park playground, continued reduction of its carbon footprint, and social justice initiatives. He also noted that Amherst has maintained its AA+ rating, which gives it favorable borrowing rates.

Mangano noted that 10 years ago, state aid contributed 30% of the town budget and is now 18%. State aid for FY28 won’t be known until the governor releases her budget in February. Pension and health insurance costs have increased from $12 million to $20 million over that time. The town has also hired three more EMTs.

Debt service on money borrowed for the library and elementary school rose from 0.8% in 2024 to 3.3% in 2026, and total debt service will rise further when the contract to build the new DPW is included. Reserves are 10% of the budget with an additional 5% for free cash stabilization.

Public Forum on the Budget Scheduled for November 16

The annual public forum on the budget required by the town charter will take place before the November 16 Town Council meeting. By that time, the amount of free cash left from the FY26 budget should be certified.