South Hadley Town Meeting elects to save some school services and fund library

Town Meeting members approve the FY27 budget on May 13.
Photo credit: SHCTV15

SOUTH HADLEY — The South Hadley Town Meeting representatives approved the town’s $61.4 million budget on May 13, which includes free cash to prevent cuts in the School Department and fund the library in fiscal year 2027. The budget passed by a 101-6 vote.

With both override votes failing on April 14, the town administration has continued to look at ways to address its current $3.5 million budget deficit that is projected to increase each fiscal year.

The Town Meeting representatives approved Article 10 on the warrant, which was a recommendation from the Selectboard to approve $1.5 million in free cash to add to the school budget.

The additional free cash will prevent the elimination of administrative positions, the reduction of high school staffing, and the elimination of sports, extracurriculars, and music programs in middle school and high school for the next fiscal year. South Hadley Public Schools were facing a $1.2 million budget deficit, so the allocation will level services and allow them to make some strategic investments.

Most of the public input came from Town Meeting members who advocated for the free cash to help fund the library.

Originally, the warrant stated that the Selectboard recommended not to use $75,000 in free cash to add to the library budget.

However, during Town Meeting, member Nate Therien proposed an amendment to add a combined $75,000 to the library personnel line and library expenses line to be funded by unreserved free cash. The representatives voted in favor of that amendment by a vote of 92-11.
The $75,000 is enough to meet minimum funding for library, which means South Hadley does not have to apply for a waiver for certification. The money brings the town’s contribution to the library up to the percentage of the town budget required to ensure that the library will continue to be accredited by state authorities. Without this accreditation, residents would no longer be able to borrow books from other libraries in the state, either through an interlibrary loan or in person.

The town would also lose state funds provided to support the library without the extra funding. The $75,000 does not restore the library to level funding, and the library still needs to operate with reduced hours and staff, according to the town.

Members in favor of funding the library said the building should be less about the cost and more about the access to information, memories and programs it offers to people of all ages in town.

South Hadley Selectboard member Carol Constant explained that she was in favor of the amendment to fund the library.

“I hope that through all these conversations about the library, you are becoming aware [of the] very difficult decisions that have to be made about the funding of all of the South Hadley departments and our schools. This financial crisis is not of our own making. We do not have hidden pockets of mismanagement. The fact is that rising insurance costs, prop two and a half, and the competition created by school choice have caught up with South Hadley, along with many other towns and cities in Massachusetts.”

Ira Brezinsky, who also chairs the Capital Planning Committee, responded to the residents who expressed concerns about how the town will manage money in light of this precarious budget situation.

“It’s a terrible practice, but we’re going to do it because we don’t have a choice,” he said regarding the use of free cash. “So, for all of those out there saying, ‘See? I told you, they found it,’ that’s for right now, and we’re taking a significant gamble, but one that we must take in order to right-size and stabilize where we are right now.”

He concluded that a year from now, without an override, the town will be in a worse place than it currently is because it will not have the luxury of $1.5 million in free cash.

Town Meeting also approved Article 11 by a 93-12 vote, which means $1.75 million will be raised and appropriated for the General Stabilization Fund, contingent upon the passage of a Proposition 2 ½ override.

On May 5, the Selectboard and town administration announced that they might have a special election on Tuesday, Sept. 1, to see if voters would approve a tax override to help save city services. The proposals from Town Administrator Lisa Wong included a $3.5 million tax override, but the exact amount hasn’t been finalized yet.

Wong explained that since the override has yet to be set, Article 11 features a contingent budget. The vote is only valid until Sept. 15. The recommendation is to use free cash as a bridge for FY27. If there is a successful override vote prior to Sept. 15, then an additional $1.75 million will be raised from the tax levy in FY27 and used to replenish reserves.

Right now, the current proposal being considered by the Selectboard for an override is $3.5 million. Wong said the hope is that those funds can last for three years. Based on the Budget Task Force report, the town is facing a $6 million budget deficit in FY29.

Wong explained that they reason they are asking for $3.5 million is because “the idea is if we could raise money in year one, save it for year three, then the three and a half [million dollars] passes, add the [$1.75 million,] and we would probably, with the number of efficiencies and changes that we’re hoping to make over the next year, including increasing revenue, looking at consolidation, etc. that we will be able to use this general stabilization to balance year three.”

She added that the hope is that this will guarantee the lowest number possible, as well as a three-year override, versus asking for the original six years recommended in the Budget Task Force report.

The General Stabilization Fund is an existing fund that currently has about $2.9 million in it.

Articles 12 and 13 asked to establish and allocate funds for an override stabilization fund, but no motion was made at Town Meeting. Wong explained that the Selectboard decided it would be too confusing to make multiple funds.

Future coverage of the other articles at Town Meeting will be posted on The Reminder website and in a future Herald edition.