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FY26 Operating Budget�Draft Override Budget

Presented to the School Committee & Select Board��April 17, 2025

Connor Read, �Town Administrator

Dr. Lisha Cabral,�Superintendent of Easton Public Schools

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A Note About This Presentation

The Town and Easton Public Schools aim to present the final FY26 budgets by the April 29 hearing of the Select Board and Finance Committee:

1) A balanced FY26 budget without an override, achieved through cuts and reserves.

2) An override-dependent FY26 budget aligned with the Promoting A Sustainable Easton recommendations.

Easton voters will ultimately decide on the budget on May 19 and June 10.

To provide information ahead of the hearing, we are sharing a draft of the proposed FY26 override budget adjustments. Some items, such as the EPS budget and insurance, are still pending finalization.

These final items may lead to changes in both the non-override and override budgets. However, we do not anticipate significant changes to this recommendation and believe it's better to share this draft now rather than waiting until it's fully complete before the hearing.

The choices we face as a community in the next two months are really hard. They are painful. They aren’t just accounting decisions about balancing a spreadsheet – they are value decisions with real human impact. Because 85% of our operating budgets fund our people. Our police, firefighters, our educators and paraprofessionals, our public servants, who come work every day and make Easton a great place. For some in this room or maybe watching at home who have lost their job – this isn’t a flowery abstraction – this is real, and personal, and devastating. We also know that for those feeling the pain of inflation, or who are living on a fixed income, that the debate about preserving services with an override isn’t about whether or not they value education and public safety – but about whether they can afford to remain in the community they love.

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Budgeting can be complicated. �The essence of our problem isn’t.

Property Tax (largest source of income) grows 2.5% a year
State Aid (2^nd largest source of income) grows ≈1% a year�_______________________________________________________
Fixed costs have grown 10% a year for two years straight.*

The math just does not work, and it quickly creates a problem so large that innovation, regionalizing, etc. aren't enough - the immediate choices are:

Large budget cuts & reserve funds
Override��

* Health insurance, transportation, pensions, regional school assessments, etc.

The architects of Proposition 2 ½ forty years ago recognized that capping taxes to 2.5% a year wouldn’t be feasible forever. There needed to be a mechanism for an occasional pressure relief valve on that cap - that mechanism is an override. And while the theory behind that mechanism is simple, the impact is anything but. Because when does a community and school system most need an override? When inflation is high. And when are residents of a community going to be most negatively impacted by an override? When inflation is high. �

I highlight this to recognize that we are all working within a funding system that can sometimes feel like it pits us against one another – town departments versus schools, labor against management, neighbors against neighbors – and gives us a menu of painful choices to pick from. But what I think is even more important to recognize – is that while we won’t all see eye to eye on every single item in a tough budget year like this, everyone here tonight sitting up here, in the audience, or following along at home, is doing so because they care about Easton, they care about Easton Public Schools, and they care about making the best choice they can for this community. And I’d ask we all keep that common bond in mind as we navigate the road ahead.

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Agenda

FY26 Non-Override Budget Recap – Where Things Stand

How Did We Get Here & Why Now?
Key Takeaways on FY25 & 26 Budget Posture
Understanding Easton’s Deficit Drivers
What is going on in Massachusetts?�

DRAFT FY26 Override Budget Recommendations

Info Resources to Stay Informed
Key FY26 Budget Dates

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Recap of Where Things Stand �FY26 Non-Override Budget

High inflation, ballooning insurance costs, minimal state aid, and expiring pandemic grants will come to a head in FY26.

These forces are pushing fixed and operating budget requests far outside of Easton’s revenue capacity.

FY26 Budget started with preliminary deficit of $6.36M - typical is $1-2M.

As of Change Memo 2 – March 24 – this has been reduced to $2.29M through significant cuts to Town departments and use of $3.5M of reserve funds.

April 3 EPS budget proposal, if adopted, will allow Easton to balance the non-override budget – but all of this comes at a cost.

This budget will enact the largest cuts to Easton’s educational and public services since the 2008 recession.

The budget next year represents a perfect storm for Easton – one where we’ve been struck by unprecedented inflation to health insurance, transportation and other fixed costs growing by 20% in only two years against a backdrop of nearly two decades of minimum state aid funding for public education. For those who’ve followed a budget process of ours before, you know we always start the preliminary budget in winter with a projected deficit – a gap between the expense requests of departments and the revenue we are forecasting to be available.

We have to balance the books annually – so we always close that deficit. FY26 is on a different order of magnitude from anything we’ve seen – preliminary deficits have historically averaged $1.5M, or 1-2% of our budget. This year, the preliminary shortfall was $6.36M. That is more than 4 times the size of what we usually face, and is simply too large for us to reorganize or innovate our way out of. We’ve reduced that gap to $2.3M with significant cuts to town departments and the application of millions in reserve funds – and should the School Committee adopt the April 3 EPS budget, we will have a balanced, nonoverride budget.

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The Non-Override Budget

Town department requests (+5.31%) were cut $784,244 to a total of $21.06M (1.6% above current year)

EPS budget request (+8.2%) proposes reductions of $2.36M to a total of $51.54M (+3.6% above current year)

The impact of these cuts are significant – with ≈50 FTE town/EPS positions eliminated (7% of FY25 budgeted workforce)

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Cuts to Town Services in Non-Override FY26 Budget

EPD already spends -14% less per-resident than comparable communities.

Police Cuts in FY26

2nd Police Officer Cut

Detective Division cut from 4 to 3.
Overnight Patrol cut from 5 to 4 minimum on shift.
Reduced proactive mental health supports for public.�

EFD already spends -5% less per-resident than comparable communities.

FIRE / EMS Cuts in FY26

2 Firefighters Cut

6 additional positions currently or soon to be vacant due to resignations & IOD (down 8 total FFs).
EFD will not be able to staff 3 stations.
Ability to staff 2 ambulances will be weakened.

Doing so will require significant overtime, including involuntary OT.

Reduced paramedicine program – fewer proactive services to cut down on 911s.

DPW already spends -20% less per-resident than comparable communities.

Public Works Cuts in FY26

2 Public Works positions cut

Additional position current vacant.
Reduced road, building, field and park maintenance.
Elimination of planned Engineer to support residents / businesses through permitting.

Gen. Govt already spends -52% less per-resident than comparable communities.

HCS already spends -46% less per-resident than comparable communities.

General Govt. & Health and Community Services Cuts in FY26

1 position cut from town hall (2^nd already vacant)

Customer Service hours for collections cut in ½.
Reduced services to public, slower permitting.

Close Town Pool.
Reduced transportation services.

Per Mass. DOR - Neighboring towns with K-12 schools employ an average of 38 town/school employees per 1,000 residents. Even before these cuts – Easton employs -27% below that average at 28 town/school staff per 1,000 residents.

This is a high-level overview of cuts and impacts – please visit www.Easton.ma.us/fy26budget for detailed information.

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The Road Here – Easton’s Budget Milestones over 20 Years

2005 – Voters approve OAHS & EMS debt exclusion.

2006 – Voters approve last operating override in Easton.

2008 – State Aid Cut – Town and School budgets cut.

2013 – Voters fund facilities repair/replace program.

2016 – Voters reject operating override.

2016 – Town adopts financial management policies – cuts reserve fund use & adopts austere operating budgets.

The challenges we face in the next two months are informed by where we’ve come from in the past twenty years.

In 2006 voters approved the last operating override in Easton. This was one year after approving a debt exclusion for OAHS/EMS. Voters in Easton have for many decades been very supportive of debt exclusions – which can only fund capital projects and cannot be used for operations – but operating overrides have been very rare.

Unfortunately, 2 years after that last operating override, the Town’s revenue took a big hit when state aid – second largest behind taxes - got cut in the recession. It took 8 years for that revenue to come back to 2008 levels. This has forced a frustrating reality for our residents where they see their tax bill go up each year, yet hear the Town claim it has revenue challenges. Those increased tax dollars have simply filled the growing gap of state aid – which once provided 25 cents of budget dollar and now provides just 13 cents. The Town sought an operating override in 2016 to address the revenue gap borne out of cuts to state revenue. Voters did not approve it. Austere operating budgets have followed for the decade since.

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2017 – Voters approve feasibility to replace all �K-2 schools.

2019- Voters approve Blanche Ames debt exclusion.

2021 – Voters approve feasibility to replace Police, Fire, DPW facilities.

2023 – Voters approve debt exclusion to build new police, fire, and DPW facilities.

2024 – Unprecedented inflation for health insurance & fixed costs.

2024 – Voters approve FY25 budget & create PASE.

2025 – PASE recommends $7.override for FY26.

The Road Here – Easton’s Budget Milestones over 20 Years

CY21 – 23 operating position was stable, stabilization fund was growing, & reserve use in budget were some of the lowest in fifteen years.

In the years following the failed override, we continued to advance work identified in Easton’s comprehensive facilities repair and replacement program, funded by voters in 2013, which lead to debt exclusions to build Blanche Ames and police, fire and public works facilities. Each of those projects were approved by voters three separate times over the course of 6 years following hundreds of public meetings.

During the two years where the police, fire, and public works project were voted in 2021 / 23 – Easton’s operating budget was stable with growing liquidity and reserves. Those operating budgets had deficits below the 5 and 10 year averages, and some of the lowest use of reserves to balance the budget in the past fifteen years. It was only in FY25 that health insurance and other fixed costs broke that stability.

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To left: history of Easton’s preliminary budget deficits by fiscal year, the amount of reserves used as a % of total balanced budget in the same year, and with key milestones relating to overrides and debt exclusions.

Recent debt exclusions stem back to a 2013 vote to fund a facilities repair program.
Notion that the votes to advance Public Safety / Works (fall of 2021 & 2023) occurred while Town operating budget indicated an override was imminent is not accurate.
In fact – the fiscal years during which Town leadership sought (and received) voter approval to advance that project (FY22 and FY24) were some of the most stable operating budgets in 15 years.

FY22 (year of the feasibility vote) had the lowest use of reserves as a % of operating in 16 years.
FY24 (year of the debt exclusion vote) had the 5^th lowest use of reserves as a % of operating revenue of 16 years.
Both years had preliminary budget deficits below the 5- and 10-year averages,
Both years had reserve use below the 5- and 10-year averages.

The deficit then grew rapidly in FY25 & 26 due to unprecedented growth to health insurance and other fixed costs. Not because of a debt exclusion.

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DID EASTON DO ANYTHING TO TRY TO CLOSE THE GAP?

Easton has fought hard – successfully – to delay the arrival of a year like this as long as possible.

We’ve saved or avoided millions in expenses by:

regionalizing services,
consolidating departments and in-housing SPED and other services,
reforming health insurance,
solar generation and grant funded efficiency projects

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DID EASTON DO ANYTHING TO TRY TO CLOSE THE GAP?

Improved Revenue:

Millions in New Growth via sewer construction and zoning reform.
Local receipt growth (meals tax, building permits).

Reducing reliance on reserves:

Conservative operating budgets
Declining % of budget funded by reserves.

This approach served us well for nearly 20 years!.

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Preparing for the Rain – Stabilization Funds and Fortifying Easton’s Financial Position

While gradual progress was being made, Easton fortified its financial position to prepare for eventual downturn.

Allows us to tap substantial amount of stabilization fund in FY26.

Regrettably, this is enough to mitigate the cuts in FY26 – but not prevent them outright.

Had Easton not built reserves, cuts to departments would be substantially worse today.

What has Easton done to strengthen financial position?

Quadrupled stabilization fund balance from $1.59M in 2016 to $7.03M, its highest balance ever.
Easton’s reserve fund ratio doubled from below 5% to 10% - the highest in real dollar and percentage terms in at least 20 years.
Leveraged mitigation funds & state grants to complete three sewer districts which contributed to FY25’s New Growth surpassing $1.5M.
Commercial, Industrial and Personal Property (CIP) have contributed significantly to Easton’s New Growth – despite 88% of Easton’s property value being residential – 32% of all New Growth since 2021 has come from CIP.
Easton’s average annual tax bill increase this decade (FY16-25) of 3.5% is below the Massachusetts average annual tax bill increase of 4%.
Easton’s average tax bill rank among 351 MA communities has dropped from 65^th in 2021 to 79^th today – the lowest it has been since 2006.
Easton’s FY25 residential tax rate of $12.48/$1,000 is lowest since 2009.
Easton’s income growth has been strong - the average single family tax bill as a percentage of per capita income in FY25 (13.5%) is the lowest it has been as far back as the Department of Revenue keeps such data (2007).

Nonetheless – we didn’t take for granted that a tough budget year would never come. In fact, we regularly warned that it eventually would, although we couldn’t give an exact date years in advance which – frankly – may have made the constant talk about a structural revenue gap sound like white noise. Since the failed override, we’ve made tremendous progress on our reserve position thanks not only to financial management policies but voters who have for years supported conservative budgets and voted to continuously build our reserves. This has positioned us to leverage about $3.5M in reserves in the non-override FY26 budget – a combination of stabilization and free cash – that will meaningfully mitigate the cuts to departments. Regrettably, the severity of the deficit is so extreme that reserves cannot fix it, which is why budgets had to be reduced.

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Key Takeaways on FY25 & 26 Budget Posture

Revenue growth available for department budgets next year is ≈$4.13M

More than half of this is $2.37M in Stabilization Fund use (reserves)

Fixed cost growth consumed 36% of new revenue in FY25.
Fixed cost growth will consume HALF of new revenue in FY26.

Revenue is insufficient due to minimum state aid and 19 years w/o override.

Expense capacity is insufficient due to fixed cost inflation – NOT from Town or School departments “overspending” or “taking” at the expense of the other.

FY26 Fixed cost increase ($2M) is more than EPS increase ($1.8M) and dwarfs increase to all Town Departments (332K).

And that leads us to where the $107M FY26 nonoverride budget stands today. On the screen to the right you can see the total increases in each major revenue category available next year, and below it, the increases to the three major expenditure categories. You will notice that the largest increase to budgets is not the School Department, which would typically make sense as it is the biggest component of the total budget – but fixed costs. This is now a 2 year trend. In FY25, fixed cost growth consumed 36% of total new revenue. In FY26 it will consume half of new revenue. As this data shows, our expense capacity is being crushed by explosive fixed cost increases – not from overspending by the Town or School departments, and not from one department “taking” the lion’s share of funding at the expense of the other.

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Current Expense Posture Staffing

Recent cost inflation is not caused by overspending on operations or over-hiring.
Total per-resident spend is -17% below MA average.

Easton is lowest among our 8 comparable communities; 2^nd lowest among our surrounding communities.

Easton has fewer staff across the board (police, fire, DPW) including school and town government leadership.
It was true in 2017’s operational audit, true for the 2020 Budget Subcommittee and true with PASE’s review today.

Massachusetts Dept. of Rev. data on staff levels show…

Among neighbor towns with K-12 School Systems, Easton has the FEWEST staff per 1,000 residents.
Easton/EPS total staff of 28 per thousand residents is 27% below the neighbor average of 38 per thousand.
Were Town / EPS to staff at average rate, we’d need to hire an additional 258 employees.
The expense growth that is straining the budget is inflation of fixed costs.

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The Data Shows that Easton & EPS:

Spends fewer dollars per resident and pupil than most neighbors and peer agencies

Staffs fewer personnel

Did not overspend itself into this challenge

Cannot cut its way to improved services

So why would we ever need an override?

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DEFICIT DRIVER 1 OF 2�FY26 INSURANCES, PENSION ASSESSMENTS AND REGIONAL ASSESSMENTS

1 of 2 major causes of the FY26 deficit is the explosion in fixed operating costs – specifically health insurance, property insurance, pension assessments and regional school assessments.

Fixed Cost	FY24 Budget	FY25 Budget	FY26 Change 2	2 Year Increase	2 Year % Increase
Employee and Retiree Health Insurance	$9.5M	$10.3M	$11.44M	$1.9M	20%
Retirement Assessment (Pension)	$5.75M	$6.1M	$6.66M	$0.9M	16%
Prop, Casualty and Liability Insurance	$1.24M	$1.32M	$1.45M	$0.21M	17%
Regional School Assessments	$1.38M	$1.69M	$1.94M	$0.56M	41%
Subtotal	$17.87M	$19.41M	$21.49M	$3.6M	20%

For perspective:

2-year health care increases = previous 10 years combined
2-year health care increases = more $$ than total increase to Police in 10 years

Compare Fixed Cost Growth - $3.6M in 2 years time to:

FY26 Tax Revenue* (biggest revenue bucket) is forecast to increase $2.6M
FY26 State Aid Revenue (2^nd largest source) – forecast to increase $361,111.
FY26 all Town Department Increase - $332K (1.6%)

* doesn’t include exempt revenue which cannot be used for operating budget

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DEFICIT DRIVER 1 OF 2 �HEALTH INSURANCE

GIC plans in FY26 range from “low” of 10.5% to high of 17.2% over FY25.
On heels of 10% increase in FY25, this is catastrophic.
Town has taken numerous steps to mitigate this disastrous increase:

Adoption of future retiree healthcare contribution changes by the Select Board
Convening the Insurance Advisory Committee
Development of Annual Required Contribution Policy
Expanding the Town’s annual insurance incentive and opt-out programs

What Has Changed with Insurance Costs?

FY14-24 Av. Annual Increase – 3%

FY24 Increase – 3.9%

FY25 & 26 Cumulative Increase – 20%

Diving in on health insurance – I think this one item really is the focus when we hear the question “why didn’t they see this coming?” - joining the GIC actually avoided millions in cost compared to market health care growth in the past decade. The ten years leading to FY24, the average annual health insurance budget increase for Easton was about 3%. This changed dramatically in FY25, when they increased by 10%, and plans next year will increase between 10.5 – 17%. A single year with 10% is difficult. Having this occur back to back is catastrophic – it basically took a sledge hammer to Easton’s budget position.

As everyone knows from their personal health insurance – it is not as if your carriers give you a multi-year heads up this is coming – we learn what rates are for a coming July in February. This is also not unique to us. Other municipal carriers have also seen double digit spikes. We’re working on various mitigations to those costs, including ongoing discussions with our labor partners that the Town is extremely appreciative of, and expanding our incentive and opt out programs, but those items cannot alone address such unprecedented cost increase.

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DEFICIT DRIVER �2 OF 2 ��20 YEARS OF MINIMAL STATE AID FUNDING

The 2nd major cause of the FY26 deficit is Easton’s 20-year history of underfunded state aid.
Had Easton’s FY08 State Aid simply grown at the rate of inflation – FY25 would’ve seen ≈ $17 million instead of the actual net receipt of $12.9.

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Deficit Driver 2 of 2 �What Does Minimum State Aid Look Like?

Receiving only minimum aid - $30 / per student new revenue per year – means EPS receives ≈$100,000 new state aid per year.

That is equal to 0.2% of the EPS annual budget.

Since 2010 – Chapter 70 State Aid to EPS has funded only 7.5 cents of every new dollar of budget capacity.
During those years, State Aid went from 31% of EPS budget to only 22% today.
Local funds have made up difference and done so with no override.

Drilling down on state aid – what does minimum aid for a school system actually look like? The chart on screen shows the total state funding to EPS with blue bars and local funds with orange. You can tell that blue bar doesn’t move much from 2010 through 2025, and that is because it has increased about 1% a year. In those 15 years, state aid has funded only 7 ½ cents of every new dollar of budget capacity at the EPS. During those years, the % of the EPS budget covered by state funding has dropped from 31% to only 22%, with local funds making up the difference.

So we have two real problems. One is a long-term challenge – which is minimal increases to state aid – but we’ve shown by going 19 years without an override that we’ve been quite conservative in managing that revenue gap. The 2^nd problem is what pushed us over the edge, and that is that fixed costs have grown by nearly $3.6M in two years. We just can’t take that kind of broadside for more than 1 year with such a lean operating position, very few communities can – which brings me to the final piece I want to touch on:

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What Is Going on in Massachusetts?

This is not an “Easton problem”
Exploding insurance/fixed costs, expiring federal funds, and minimum state education funding are coming to a head throughout the state.
From FY14-23: 287 overrides sought statewide.

Average of 28 attempts / year out of 351 cities and towns.

FY24 – 62 attempts.
FY25 thru 12/31/24 – 46 attempts.

Among the 10 MA towns with most similar tax profile– Easton has gone the 2nd longest (19 years) without an override.

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DRAFT�FY26 OVERRIDE BUDGET RECOMMENDATIONS

Visit www.Easton.ma.us/override for all information.

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DRAFT OVERRIDE RECOMMENDATION

Basis of Recommendations:

PASE Community Compact and Recommended $7.3M override
FY26 change memo #2 dated March 24th
Draft EPS FY26 budget presented on April 3^rd

Pending FY26 Items that will likely shift final figures:

Property/liability insurance
Snow & ice
House version of FY26 MA budget

Estimated additional tax impact:

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1. ELIMINATION OF ONE-TIME RESERVE FUNDS USED IN NON-OVERRIDE BUDGET�$3,522,648

Non-override budget uses $3.5 million in reserves

Weakens long-term financial position
Creates fiscal cliff in FY27
Additional town / school budget cuts needed in FY27 if override does not pass

Impact on Town and School Budgets if reserve use is not eliminated from budget:

$3.1M in budget cuts meant ≈50 positions cut in FY26 non-override budget
$3.5M of reserves in FY26 = even more cuts in FY27
Public and educational services will continue to decline

Benefits of Removing Reserves as a funding source:

More stable financial position
Increased cash capital for school technology, roads, parks, emergency equipment
First budget since 2006 without structural revenue gap
Enhance longevity of the FY26 override
Protect against future economic downturns or state/federal funding instability

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2. RESTORATION OF CUTS TO EASTON PUBLIC SCHOOLS��$2,060,000�

Restoration of $2,060,000 in cuts

90% of the proposed $2,228,422 reduction in non-override budget will be restored.

Total EPS FY26 budget increase with Override

$3,850,940 increase
7.74% over FY25

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EPS OVERRIDE PRIORITY RESTORATIONS / NEEDS

Restoration of positions and programs
Classroom and Specialist Teacher(s) - reduce class sizes (elementary first)
Course Offering(s) - reinstate selected electives
Student Support Staff - Ie: para, nurse, etc. staff
Student Programming - Ie: Sheep Pasture, Summer instruction, etc.
Emerging or Unexpected Needs - Ie: ML, Special Ed, Kindergarten, transportation, data, etc.
Facilities - Loss of Capital Funds option

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IMPORTANT NOTES:��EPS BUDGET�

Override amount will not be enough to fund all reduced/eliminated positions

Most of the reduced/eliminated positions (26.81 of 44.81) were vacated by retirement, resignation, etc.

Many positions will remain unfilled due to enrollment or student interest (ie: one or more electives)
As noted, emerging or urgent needs will be data based and may affect final budget allocations

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3. RESTORATION OF CUTS TO TOWN DEPARTMENTS��$727,352

Restoration of $727,352 in cuts

89% of cuts to Town Department level service requests restored

Total Town Depts FY26 budget increase with Override

$1,059,701 increase
5.11% over FY25

Gen Govt.

1 cut position restored, partial expenses restored.
$48,407 in cuts will not be restored

Health & Comm. Services

Restoration of $40,229 in cuts to HCS
Town Pool can reopen in summer 2026
Transportation services maintained

Public Works

1 of 2 positions cut restored,
Cut salary funds re-directed to capital R&M funding
Not sufficient for needs – but step in right direction of recurring operating expense for R&M

Police

2 positions cut restored
Maintain existing detective division, overnight patrol staffing, and community resource officer / mental health liaison co-response capacities.

Fire / EMS

2 cut positions restored
Ability to hire / fill the growing vacancies – resignations due to instability mean EFD will enter FY26 non-override down 8 firefighters (20% of department).
Maintain existing ambulance response (2 available)

The override would restore $727,352 in cuts to the Town Departments FY26 Budget. This includes some savings and reductions compared to the preliminary budget request. These restorations will stabilize general government and HCS, allow a partial personnel restoration in DPW along with restorations to R&M for improved annual capital capacity. All positions cut from Police and Fire will be restored – allowing us to maintain existing service levels for our detective division, overnight patrol staffing, and the community resource officer program. It will allow us to stabilize the fire department, which is seeing increased resignations due to the budget instability, and maintain existing ambulance capacity. Each of these departments will present their budgets in detail on April 29 when they are finalized. ��

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4. INCREASE TAX ABATEMENTS & EXEMPTIONS:�SENIORS, VETERANS & INDIVIDUALS W/ DISABILITIES��$150,000

Increase annual allowance for abatements and exemptions by $150,000 (up 30% from FY26 request) to:

Potentially double the tax breaks on most existing statutory exemptions – index veterans abatements to increase w/ inflation
Enhance capacity for forthcoming FY26-28 local Circuit Breaker program passed with the muni building project

PASE Community Compact

Acceptance of various state options to increase tax exemptions in Easton are included on Town Meeting Warrant (Article 3)
Contingent on the override passing

Coupled with county ARPA award for Tax Aid Committee and SERVES – would bring Easton’s annual financial assistance in FY26 to ≈$900,000 – 1,000,000

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5. RESTORATION OF CUTS TO INSURANCE BUDGET��$40,000

Restoration of Town’s Contribution to OPEB Trust Fund

Recurring contribution to the fund

Increase allowance for health insurance from expected job restorations
Pending finalization of property, casualty, and liability insurance
Resolution by April 29th

Will lead to adjustments to amount or necessity of override funding of this item.

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6. CREATION OF OVERRIDE STABILIZATION FUND��$800,000

PASE recommendation:

$7.3 million override,
$800,000 in efficiencies / cuts

Purpose of Override Stabilization Fund

Diverts $800,000 into fund to offset future wages and insurance costs- largest cost drivers in the budget
Fund can only be appropriated by voters at Town Meeting

Necessity of Override Stabilization Fund

Override positions Easton to be more sustainable
4% annual budget caps on Town and School operations
But as PASE analysis showed – will be struggle to maintain services without reducing budgets by FY2028 – should NOT allocate out all $7.3M to operating spending in year one (FY26)
Recommend $800,000 to this fund to extend the benefit of the override consistent with PASE Compact.

The final recommendation is the creation of an override stabilization fund. As was extensively documented in public meetings of the Committee, even if the override passes, current fixed cost trends could challenge Easton’s ability to maintain services without reducing budgets / leveraging reserves by year 3 (FY2028). Accordingly, we recommend that $800,000 of the FY26 override fund the creation of a new, specific “Override Stabilization Fund” for purposes of offsetting future wages and insurances, which are the largest cost drivers in our budget. These dollars would go into the Override Stabilization Fund and could only be appropriated by vote of residents at Town Meeting for these specific purposes.

�While Town and School departments could easily articulate $800,000 in operating needs / enhancements to add to the proposed restorations the Override Stabilization Fund will enhance Easton’s ability to stretch the benefit of this override and stabilize services.

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DRAFT PENDING FINALIZATION BY APRIL 29, 2025

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Important Resources to Stay Informed

SIGN UP FOR THE TOWN’S WEEKLY NEWSLETTER – www.Easton.ma.us/towncrier

Visit www.Easton.ma.us/override for all information relating to the budget choices voters have this spring.
If you are joining discussion for 1^st time – please read the Promoting A Sustainable Easton Frequently Asked Questions – www.Easton.ma.us/paseFAQ

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Key Dates for the Community

LEARN & ENGAGE

April 29, 6:30PM, OAHS Auditorium – FY26 Final Budget Hearing �Select Board & Finance Committee

Balanced budget (reserves & cuts) and override budget will be presented and recommendations voted by elected leadership

May 7, 6:00 PM, OAHS Atrium/Auditorium - Final PASE Open House

PASE presentation
Q&A with PASE and town/school

COMMUNITY VOTES

May 19, 7:00 PM, OAHS Auditorium – Annual Town Meeting

Vote 1 of 2 to Pass / Reject Override

June 10, 7AM-8PM, OAHS – Special Town Election: Override

Vote 2 of 2 to Pass / Reject Override

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Thank You

Visit www.easton.ma.us/fy26budget

And

www.Easton.ma.us/override