Politics & Government
Arlington Officials Discuss Staffing And Spending At Budget Forum
Zoning changes can take years to produce financial impact, and larger projects do not occur frequently enough to improve budget pressure.
ARLINGTON, MA — Town officials are looking for ways to manage rising costs while maintaining services and avoiding another tax override for the next several years.
Town Manager Jim Feeney, Superintendent of Schools Dr. Elizabeth Homan, and their finance teams discussed those challenges during the joint Town and School Budget Forum on Thursday, Oct. 29, at Arlington High School. The presentation focused on Fiscal Year 2028 and beyond, with residents asking about staffing, affordability, and budget transparency.
Feeney said Arlington faces a structural deficit, with service costs increasing faster than revenues. The town uses a five-year financial plan to anticipate those gaps and determine when another Proposition 2 1/2 override may be needed.
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Voters approved a $14.8 million override earlier this year to support town and school operations. As part of that process, the Select Board committed to no additional override before FY2030, with annual operating budget increases capped at 3.25 percent for town departments and four percent for schools through FY29.
Feeney said conservative revenue estimates and carrying savings forward help extend the time between overrides. Additional state aid and unspent funds reduce future deficits, while deposits into the override stabilization fund help balance subsequent budgets.
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Property taxes account for approximately 77 percent of Arlington’s revenues, with annual growth constrained by Proposition 2 1/2. State aid is the next largest source, but its yearly increases are difficult to predict.
Residential properties account for more than 94 percent of the town’s tax base. Feeney said the limited commercial base makes a split tax rate impractical as a way to provide substantial relief to homeowners.
New development generates additional revenue, but Arlington has little undeveloped land. Most growth comes through renovations, additions, and redevelopment. Feeney said zoning changes can take years to produce a measurable financial impact, while larger projects occur too infrequently to resolve ongoing budget pressures.
Deputy Town Manager and Finance Director Julie Wayman outlined several expenses that have increased substantially, including employee health insurance, pension obligations, and curbside waste collection.
Feeney said preliminary information pointed to another nine to 12 percent increase in health insurance premiums for FY28. Official projections had not been announced, and the town was monitoring the state’s Group Insurance Commission while exploring incentives for employees to choose less expensive coverage or obtain insurance elsewhere.
Pension contributions are expected to increase by five percent annually until Arlington fully funds its outstanding pension liability, currently projected for 2034. Annual contributions would continue afterward, but Feeney said substantially lower payments could free up operating revenue.
Trash collection and disposal costs are expected to increase by approximately five to six percent annually. Officials said Arlington’s previous 10-year contract had insulated the town from recycling market changes and other industry costs before its agreement with WM began in FY26.
Existing purchasing agreements have also protected Arlington from some fuel and electricity increases, but that protection will diminish as contracts expire.
The electricity supply agreement ends in December 2027, midway through FY28. Feeney said available prices were approximately 22 percent higher than Arlington’s existing rate. Energy efficiency projects, new solar installations, and previously secured natural gas agreements could offset some increases.
Feeney said multiyear contracts help officials anticipate expenses and avoid reductions elsewhere.
“Anytime we can lock something in is a good thing for us so that we don’t have surprises,” Feeney said. “Because if you have surprises, it leads to cuts.”
Homan said schools face a similar challenge in maintaining services within the four percent annual growth limit.
“It will be challenging in the next few years, and we are committed to it,” Homan said.
Assistant Superintendent of Finance and Operations Chris Schweitzer outlined a current school operating budget of approximately $107.7 million, with the next year’s allocation expected to reach approximately $112 million. Personnel accounts for roughly 85 percent of spending.
Schweitzer explained that salary increases include negotiated cost-of-living adjustments and increases tied to experience. Teachers can also move to a different salary lane after completing additional education.
Homan said the district has improved its competitiveness with surrounding communities, particularly at the top of the teacher salary schedule. However, salaries for teachers earlier in their careers remain a recruiting challenge heading into another round of negotiations.
Enrollment has begun declining more slowly than anticipated. The district reported 34 fewer students this school year, including 21 fewer attending schools within the district and 13 fewer in out-of-district placements.
Homan said the in-district decline is roughly equivalent to one elementary classroom, but those students are spread throughout the schools, limiting potential savings.
The district reduced staffing by approximately 17 positions during the previous budget process. Homan said careful scheduling and elementary school buffer zones helped limit the effect on class sizes and preserve offerings and services.
Asked whether further staffing reductions would be necessary, Homan said officials hoped to avoid them.
“We’re hoping not because we’re not sure how we would meet the needs of the kids at that point,” Homan said.
Declining enrollment could eventually reduce the number of classroom sections needed. When possible, the district absorbs those changes through retirements and other departures.
“At the end of the day, you run schools with teachers,” Homan said. “So you need them.”
Meanwhile, the share of students designated as high needs increased from approximately 25 percent in 2020 to nearly 30 percent, representing more than 200 additional students as enrollment grew.
That designation includes students with disabilities, English learners, and students from low-income households. Homan said their needs can require additional staffing, materials, and support even as overall enrollment declines.
Out-of-district special education tuition remains another significant expense. Schweitzer said the district projected approximately $6.9 million in tuition costs, with $4.6 million funded through the operating budget and much of the remainder covered by state circuit breaker reimbursements.
Homan said average annual tuition per student increased from approximately $61,000 to $130,000 over the period presented. Fewer out-of-district placements have limited the overall impact, but some students require services Arlington cannot provide internally.
Residents also raised concerns about costs for families of children with disabilities. A Special Education Parent Advisory Council representative cited a council survey in which 73 percent of respondents reported paying privately for evaluations, advocates, or attorneys to obtain educational support.
Homan said she planned to meet with the council to better understand those concerns. Feeney said state eligibility requirements constrain property tax relief, though local assistance programs can help with other household expenses.
Another resident requested clearer explanations of budget figures, particularly special education spending, saying unclear presentations could contribute to misconceptions about its effect on other spending.
Homan said earlier feedback had prompted changes to the forum’s materials, and officials would continue answering questions through budget hearings and family discussions. Feeney encouraged residents to review the town manager’s budget documents for detailed staffing and spending information.
Homan credited collaboration between town and school officials with helping Arlington identify financial challenges early.
“If you cannot see a deficit coming, you cannot strategically address the fact that it is on its way,” Homan said.
The town manager’s proposed FY28 budget is due to the Select Board and Finance Committee on Jan. 15. School officials will develop their proposal with staff and the School Committee before public hearings and Town Meeting consideration in the spring.
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