Town Manager Presents $103 Million FY26 Budget to Town Council
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Report on the Meeting of the Amherst Town Council, May 5, 2025
This was a hybrid meeting and was recorded.
Present
Lynn Griesemer (President, District 2), Andy Steinberg, Mandi Jo Hanneke, Ellisha Walker (at large), Cathy Schoen and Freke Ette (District 1), Pat DeAngelis (District 2),
George Ryan and Hala Lord (District 3), Jennifer Taub and Pam Rooney (District 4), Bob Hegner (District 5). Absent: Ana Devlin Gauthier (District 5)
Staff: Paul Bockelman (Town Manager) and Athena O’Keeffe (Council Clerk)
FY26 Budget Reflects Tough Fiscal Choices
Town Manager Paul Bockelman and the Finance Department gave a brief presentation on the 296-page FY2026 budget to the Town Council. The $103.26 million budget is the first in the town’s history to top $100 million, but even so, rising costs, especially in health insurance, made it necessary to freeze 6.4 vacant positions. Bockelman said that the four percent increase that he recommended would not even cover the increases in health insurance premiums, cost of living increases, and retirement benefits, much less the increased allocations to the regional and elementary schools, so the freezing of positions was necessary.
The proposed budget represents a 5.3% increase over FY2025. It is a balanced budget, so no override is required. According to Bockelman the budget reflects the community values of education, equity, and sustainability and reflects the town’s commitment to fiscal stability. It prioritizes investments in public schools and essential services, while devoting $9.66 million to capital projects. Bockelman stressed that it is extremely important for Amherst to be in a strong financial position to get favorable interest rates when it is time to borrow for the coming large capital projects: the Jones Library, DPW headquarters, and Fire Station/EMS.
To meet the funding required by the schools, which was recommended by the school committee late in the budget process and further recommended by an April 7 council vote, capital funding was reduced from 10.5% to 10.26% and 6.4 vacant positions will not be filled in the coming year. These include one position in the Amherst Police Department, two of the three vacant positions in CRESS, two in the Fire Department, one in the DPW, and a half-time position in the Recreation Department. Bockelman said that the town has tried to hire for fire/EMS positions, but the applicant pool is weak at the current time. The increased school funding will be met by a one-time bridge funding,
Income from property taxes is expected to increase by 3.5% next year, thanks to new growth. When the debt exclusion override for the new elementary school begins, the revenue from property taxes will increase by 5.8% over FY25 levels. Local receipts are anticipated to rise by 8.1% and state aid by 2.8%. Revenue from ambulance services and the water and sewer enterprise funds are also expected to rise.
The budget supports the Town Council goals of climate action; community health, safety and social justice; housing and economic development; administrative leadership; infrastructure management, maintenance, and land stewardship; and community and strategic relationships. However, Bockelman cautioned that the reduction in personnel may slow progress in some of these areas. He did announce that Amherst was one of the first communities in the state designated as a climate leader, which opens the door to the town receiving funds for climate action. The town recently acquired the first hybrid fire truck in the state and will display it publicly at the Sustainability Festival on May 10.
To further save costs, the currently vacant position of Planning Director will be combined with the long vacant economic development position. The town is also working with UMass and with the state to determine a fair formula for Payment in Lieu of Taxes (PILOT) payments to the town. Bockelman said that he will soon begin discussion with Amherst College as well.
Several councilors asked how long vacant positions are kept before they are lost. Bockelman replied that realistically, they will not be funded unless there is a substantial increase in revenue.
Regarding CRESS, he said, “We’re doing an assessment of CRESS right now, which we’re hoping to get done in June or July, and that will inform us about what CRESS should be doing, what it can be doing. I believe in CRESS. I believe in its mission, but I think that it needs a frank analysis of what it should be doing better and what kind of staffing levels it really deserves.”
The five-year economic forecast predicts a deficit of over $1 million a year beginning in FY2027, when borrowing for the library and other capital projects is expected to start. The plan recommends maintaining 10.5% investment in capital projects. Inflation, and aging infrastructure continue to present challenges.
Capital Improvements for FY26
The capital improvements recommended for next year include $1 million for public safety radio system replacement, $500,000 for a hybrid ambulance and $130,000 for additional cardiac monitors in ambulances, $450,000 for middle school changes to accommodate the move of the 6th grade, $250,000 for special education vans, and $200,000 for the electric school bus leasing and associated charging systems. One million dollars is slated for facilities repair, and will mostly be used for the repair of the Town Hall roof. Road repair will receive $775,000 in addition to state funds. There is $100,000 for stormwater management, $100,000 for traffic calming measures (mostly from resident requests), and $250,000 for energy transition planning and implementation.
Upcoming Budget Meeting and Public Hearings
The manager’s proposed budget was unanimously referred to the Finance Committee, which will meet every Tuesday from 2 to 4 p.m. and every Thursday from 9 to 11 a.m. in the month of May. The May 20 meeting will begin at 1 p.m. to allow councilors to attend the “topping off” ceremony for the new elementary school at 4 p.m. This event will celebrate the hoisting of the last steel beam into place on the new building.
There will be a public hearing on the budget at the start of the May 19 Town Council meeting and a public forum on the capital plan on June 2. The council must approve the budget by June 30.
Leonard Objects to Letter from Finance Committee Requesting Extensive Information from the Schools
In public comment, School Committee member Deb Leonard, speaking on behalf of herself, questioned the extensive list of questions that the Finance Committee submitted to the School Superintendent regarding the FY26 budget. She wondered if these same questions were asked to the Town Manager.
She said, “After reading the questions themselves, there are over 40 of them, many are extensive. We, as school committee members, were required by the state to attend a training that makes a point of delineating the realm of the school committee and that of the superintendent, in particular with respect to finance and the budget. There’s an extensive cycle that they want us to be mindful of. That starts with an implementation, goes to an assessment of needs and priorities, continues with a proposed budget, and school committee deliberating and approving. And you all get to weigh in at the end to approve the bottom line of the general fund budget.
“I was staggered by the depth that our general line budget is being scrutinized. Some of the questions are inappropriate. The school committee has admitted that they cannot revenue their way out of a budget crisis. Another question is, ‘what is the Amherst School district’s position with regard to the ownership of any approval to the region-owned middle school?’ I suggest that if you want the ASC’s answer to that, I suggest you address it to the ASC and not the superintendent.”
“[You ask] , ‘if the Early Childhood Center is moved out of Crocker Farm school to Wildwood, would there be room for the 6th grade in Crocker Farm and the new Fort River School?’ These are questions that I think overstep my responsibilities as a school committee member.”
Also, the Finance Committee’s letter referred to a Regional School Committee member referencing the cuts of positions in the schools. “I am that person,”Leonard stated. “If you want to ask me why I said what I said, please don’t ask the district employees to do that. This is a communication problem; these are boundary problems.” She added, “At the District 3 meeting, Councilor Ryan said I don’t want to speak for the school committee, and then went on to speak for the school committee. We feel like we’re not being heard, and I am perfectly capable of speaking for myself.”
The meeting adjourned at 8:05 p.m. The council next meets on May 19.