Natick Reviews Town Budget Options Amid Coronavirus Uncertainty

NATICK, MA — The Natick Board of Selectmen on Monday discussed scenarios showing possible budget deficits the town might face in the upcoming fiscal year due to the coronavirus crisis.

The scenarios take into account cuts in state aid and local revenue — money the town would earn from business at now-closed restaurants and hotels, for example — and what it would look like if the town moved to a month-to-month budget process.

Each of the three scenarios resulted in some type of budget deficit, from $1.2 million on the low end up to nearly $4 million.

Natick entered the 2021 budgeting process with possible deficits on the horizon beginning in fiscal year 2022. Town Administrator Melissa Malone in January submitted a proposed $161 million budget for fiscal 2021, which will begin on July 1. That proposal was $3.4 million higher than fiscal 2020, and included some new initiatives like hiring more police.

In a presentation given to the selectmen on Monday, town officials suggested using stabilization funds to pay for the deficits. The Board of Selectmen did not hold any votes on Monday about what to do about the budget, but the topic will be up for discussion at the May 4 meeting, according to Chair Jonathan Freedman.

The selectmen also recommended that the postponed May 12 spring Town Meeting be delayed. Town Moderate Frank Foss took that suggestion and has pushed the meeting back again to June 9. It was originally scheduled for April 14.

The town has weathered downturns in revenue during national crisis before.

In fiscal years 2004, 2006, 2010, and 2012, state aid dropped into negative territory. In 2004 and 2010, it was down 17 percent. In fiscal years 2009 and 2010 — the depths of the Great Recession — local revenue was down 11 and 12 percent, respectively.

Natick is set to receive about $15 million in state aid this year, according to the preliminary budget released by Gov. Charlie Baker in January. But as the budget moves through the Legislature, state aid calculations might change. The state is also dealing with a downturn in tax revenue due to job losses — close to 700,000 since March — and closed businesses. State officials are hoping for some kind of federal stimulus, however.