All Town Budgets Stressed by Health Insurance Costs: Schools Plead Their Case

Report on the Meeting of the Budget Coordinating Group, February 5, 2025

The Budget Coordinating Group meeting was held over Zoom and was recorded.

The Budget Coordinating Group (BCG) brought together representatives of the elementary and regional schools, the Jones Library and Town Hall departments. All discussed the implications of holding the increase in their budgets for FY2026 to 3.5%.

Town Manager Paul Bockelman gave the introduction. He said, “We are in an incredibly difficult time not only on the budget, but on multiple other levels, and I just want to recognize the work that our staff, especially at the schools and our side are going through with this federal disruption, which has been uncertain and unstable. The level of uncertainty and chaos is something I have never seen before in decades of service in the public sector. These are real issues that are impacting people’s lives, and I want to ground ourselves in thinking about recognizing that we’re in the same boat and on the same team in this community. We are in a really uncertain world and we need to be taking proactive measures to make sure that we are protecting the people we serve the best we can.”

He added that, even though property tax revenue is projected to increase by 3.5% due to new growth and the debt exclusion for the new elementary school, which will begin to be collected in FY2026, much of the added revenue from new growth will go to the increased health insurance premiums. “It’s a devastating number,” he said of the nearly 20% rise in projected premiums. The town will be meeting with the Massachusetts Insurance Agents Association to discuss options for lowering the premiums this week. 

Town Councilor Andy Steinberg (at large) pointed out that a lot of town departments cite costs beyond their control, such as the cost of materials needed by the DPW and construction costs. 

Jones Library Director Sharon Sharry stated that the proposed 3.5% increase will not meet the increase in fixed costs, but the 20% increase in insurance is “absolutely preventing the library from being able to keep up with patron demand.” She noted that three people have retired recently, and she does not have the money to replace them.

Schools Predict Devastating Cuts
The most dire situation, however, was presented by the schools, both at the elementary and regional school levels. Superintendent Dr. E. Xiomara Herman stated that the schools were already struggling to identify reductions in specific positions to maintain programming in the face of deficits that are more than $1 million, but the current  insurance premium “is going to cripple us if we don’t do something differently.” 

School Committee (SC) member Irv Rhodes said, “Every dollar that is mentioned impacts a student. It impacts our children. I know that there have been concerns in the past by members of the community, especially the council, in terms of the schools not being able to live within their means. But I think that we’re at the point where we need to come together to look at not only the cost drivers. Some of those costs are literally out of our control. I want this group to understand that both the regional schools and the Amherst schools face these crippling costs, and it is not because we are not trying to control our costs.”

SC member Deb Leonard added, “Prior to this meeting, we were looking at reductions for Amherst schools of five positions in the central office and 13.2 positions in terms of our teachers, clerical workers, and paras. With a $2 million deficit, which is essentially an additional $900,000 reduction, you’re looking at another 17 positions or 35 total positions [in central office and elementary schools] or a 30-position reduction at the elementary schools. And [at the regional level], essentially all of our $19 million from the state goes to the costs that we have no impact on. And then, with the pension fund and retiree health insurance cost, we are looking at a little less than half the budget that we cannot control.”

Leonard also questioned the purpose of the Four Towns meeting held February 8, where the four towns in the regional school district meet to come to agreement on the regional school budget. She said, “I thought the caucuses [at the Four Towns meeting] were more of an opportunity to discuss, but if the town position at Four Towns is ‘we have nothing further to add [above a 3.5% budget increase],’ I don’t understand the point of Four Towns.”

Bockelman said Amherst officials are working as a team with the schools and the other towns, “The numbers are just not very easy to work with,” he said. Amherst Town Councilor Mandi Jo Hanneke (at large) stated that it was unreasonable to expect that the 13 councilors would come to a decision on school funding at the Four Towns meeting on whether they would support more school funding, that they would get information and discuss it at an upcoming meeting. However, she cautioned, “If there is discussion going on at any of the four operating entities, council included — that is, thinking about not abiding by that 3.5% [increase] — now is the time to talk about that.”

Rhodes replied, “I can almost guarantee that those discussions have taken place and will take place both within the elementary schools and the regional schools. The elementary schools and the regional schools are going to be asking for additional funds. I would be stunned if we did not do that.” He then spoke of the 5% surplus budgeted in the town budgets every year and said that that money could be used for needed services, especially for the schools, not just held in reserve.

Leonard said, “I do not see this committee or our administration being able to provide an educational experience that is adequate with those kinds of reductions,” adding that there will be no surprise “asks” for more funds at the last minute, as occurred in 2024, when several SC members were new, there was an interim superintendent, a superintendent search was going on, and, there was no representative from the schools at the BCG until April. 

Will Amherst Need an Override for the Operating Budget?
Town Council President Lynn Griesemer (District 2) wondered whether the idea of an operating budget needs to be discussed. Northampton has periodically passed overrides to the 2.5% limit on property tax increase to fund budget shortfalls, she pointed out, but Amherst has limited overrides to specific projects, such as building the new elementary school.

To the idea of an override, Leonard stated, “The message seems to be that there is an aging population in Amherst and the new generation can’t expect the same quality of education as the old generation. It would be interesting and important, if it’s an override [being considered], to find out what our community wants from their tax dollars.”

Leadership for BCG Elected and Budget Deadlines Announced
The BCG elected Griesemer to chair the committee and Leonard to serve as vice chair.

The regional school budget must be completed 40 days prior to the first scheduled spring town meeting of the three other towns, which is usually at the end of April. Interim School Finance Director Shannon Bernacchia said that the costs of health insurance premiums for the school system need to be known as soon as possible in order for her to develop the regional school budget in March. “Time is of the essence,” she said.

The Amherst Home Rule Charter lays out the deadlines for the next year’s budget. The Jones Library and elementary schools must submit their proposed budgets to the Town Manager by April 1, and the Town Manager must  develop and submit a full budget to the Town Council by May 1. The Finance Committee reviews the Town Manager’s budget and gives its recommendation to the full council in time for it to pass the budget by June 30.

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