By Melanie Petrucci, Senior Community Reporter
UPDATE: This article has been updated to include additional information on override discussions, March 16.
Shrewsbury – The opening of the new Major Howard W. Beal Elementary School is in jeopardy because of the town’s roughly $6 million dollar deficit for the 2022 fiscal year.
Chair of the Board of Selectmen Beth Casavant, stated in a joint meeting with the School Committee, March 16, that, if the schools does not open as planned, Shrewsbury will have to repay the state for its portion of the jointly funded project.
Facing that economic threat, town officials are now taking further steps towards a Proposition 2 ½ override that they’ve been circling for weeks.
“At the root of the problem is a structural deficit,” Casavant remarked. “Opportunities to reduce the deficit have been exhausted and the only way to avoid severe reduction in services that will impact all residents by vastly diminishing core school and municipal services is through an operational override.”
Override takes shape
At the Board’s March 9 meeting a $9.5 million dollar override was discussed.
Under the provisions of Proposition 2 ½, municipalities are allowed to raise property taxes by up to 2.5% percent each year. To raise additional taxes, they must go to the voters with an override to increase the percentage.
Speaking to elected officials, Town Manager Kevin Mizikar reviewed the history of the structural deficit and shared three models for a potential override – $8.5 million, $9 million and $9.5 million for comparison. He said that the top two were the most viable while the $9.5 million dollar model was the most sustainable.
“We have to strike a balance between going as far out into the future as we can but, understanding the longer we extend the commitment to the community, the more money we will need upfront,” he stated.
Federal stimulus money arrives as Shrewsbury seeks revenue
Mizikar said that there could be an opportunity to use COVID-19 relief funding from the federal government’s recently passed American Rescue Plan to backfill lost revenue because of the pandemic.
That money could last through 2024, a prospect that could help extend the full benefits of a potential budget override, Mizikar said.
Mizikar also shared, however, that the estimated amount of money that Shrewsbury could receive, originally estimated in the range of $7 to $8.4 million dollars, has been reduced to $3.8 million. Further uncertainty regarding use and limitations remain.
Selectmen collaborate with School Committee on override talks
Focused on the override, the Board and School Committee have aimed for transparency, working on public agreements with the community and with each other.
These agreements feature criteria for how dollars will be utilized. They additionally provide timelines for when those dollars will be used.
The Boards voted unanimously to adopt their respective agreements with the community, relevant to potential override terms and policies.
Those final override decisions will take place a Board of Selectmen meeting, March 23.