Finance Committee Demonstrates Limited Backing for Increased School Funding

Summary of the Amherst Finance Committee Meeting, March 18, 2025

This meeting took place via Zoom and was recorded for future reference.

Attendees
Cathy Schoen (Chair, District 1), Bob Hegner (District 5), Andy Steinberg, and Mandi Jo Hanneke (at large). Nonvoting Resident members: Tom Porter and Bernie Kubiak.

Staff Present: Paul Bockelman (Town Manager), Dave Ziomek (Assistant Town Manager), Melissa Zawadzki (Finance Director), and Holly Drake (Comptroller).

Finance Committee Resists Modifying Budget Guidelines for Schools
Councilor Ana Devlin Gauthier’s (District 5) suggestion to allocate a higher percentage increase for the regional and elementary schools compared to municipal offices and the library in next year’s budget, which she presented at the March 10 Town Council meeting, was met with reluctance at the March 18 Finance Committee meeting.

According to the approved budget guidelines, which Devlin Gauthier supported, equal percentage increases were established for municipal services, the library, elementary schools, and regional schools. Current projections from the Town Manager indicate a four percent increase across all sectors. Despite receiving an additional $350,000 from ARPA funding last year, the regional schools are still facing a $1.3 million deficit. The Regional School Committee (RSC) recently voted on a budget featuring a 5.13% increase, which would reduce their shortfall to $812,000 and restore at least six positions directly serving students. Similarly, the elementary schools are projected to face over $1 million in deficits at the four percent increase. A budget hearing for the elementary schools is scheduled for March 20, with the school committee expected to vote on the budget the following week.

Bob Hegner emphasized that last year’s Finance Committee spent significant time developing a consensus on the budget guidelines passed in December, and he is reluctant to revisit that discussion. However, Devlin Gauthier countered that the town has since gained a clearer understanding of the schools’ needs and the adverse effects of capping their budget increases at four percent.

Finance Director Melissa Zawadzki cautioned that altering allocation levels would impact the foundational budget for future years. She noted that municipal services also confront a projected $500,000 budget shortfall due to rising costs, obligations to employees, health insurance, and deferred maintenance. “While I appreciate the schools’ efforts to communicate their challenges, we must also articulate the difficulties faced by other areas. The fiscal situation this year is exceptionally tough,” she stated.

Andy Steinberg mentioned receiving a letter from Jones Library Director Sharon Sharry indicating that cuts in the federal budget could affect library services. He suggested that the library should be cautioned about possible budget reductions and requested specific details on the town services cuts necessitated by the anticipated budget shortfall before making any further cuts to town services. Steinberg highlighted how potential tax cuts for the wealthy could lead to the elimination of municipal bond interest deductions, significantly disrupting the town’s funding for projects through bond sales. Additionally, expected reimbursements for energy-efficient measures for the new elementary school (as outlined in the Inflation Reduction Act) might also be at risk. These considerations must be weighed before modifying budget guidelines, he maintained.

Cathy Schoen indicated she might only consider increasing school funding if it could be done without reducing the proposed municipal budget. She proposed temporarily suspending the CRESS program by not filling its two vacancies and postponing the hiring of inspectors for the new residential rental inspection initiative. She also suggested allocating less than 10.5% of the budget to capital expenses for the current year.

Zawadzki disagreed with these suggestions, emphasizing that the town benefits from income generated by rental inspections, similar to the revenue from ambulance services provided by added fire/EMS personnel. While neither program is expected to be self-sustaining, the cost savings would be minimal. She added that reducing capital expenses could disrupt plans to build a new fire station and DPW in a timely manner.

Mandi Jo Hanneke expressed interest in understanding the rising costs of municipal budgets and libraries better to compare their needs with those of the schools. She noted that as the new school is completed in Fall 2026, the elementary schools might require fewer positions, given there will only be two remaining. Furthermore, she remarked that the four towns in the regional school system must align more closely with the regional agreement without placing an excessive burden on Amherst.

Finance Committee Committed to Equal Increases Across Budget Areas
Resident member Bernie Kubiak advocated for maintaining equal allocations across the budget. He remarked, “My experiences with four other towns that faced budgetary disputes among departments support the rationale for equal percentage increases. Amherst is unique in practicing this. Abandoning equal distribution will foster ongoing conflict, not just this year but in the future. We can’t approach the Commonwealth claiming an educational funding crisis while intending to address it by cutting other services; that merely shifts the problem.” Speaking on the multi-million-dollar budget surplus Amherst has experienced, Kubiak added, “We should be grateful for some free cash to cover gaps within federal funding, which comprises 20 to 25% of the Commonwealth’s budget.”

The principle of consistent increases across all functional budget areas was also backed by Hanneke and Steinberg.

Town Manager Paul Bockelman noted, “This is a crucial conversation, and I appreciate Ana [Devlin Gauthier] initiating it. I fully understand the challenges the school district faces, and it’s likely that when the regional school district states their needs are at 6.5%, the elementary schools will similarly express their requirements. We must acknowledge the scale of the challenges at hand. The council serves as fiscal stewards for the community, setting long-term goals. The town’s stability and reputation for sound finances rely on our non-combat atmosphere. When new dollars are available, they are distributed fairly. Altering this dynamic would lead to a win-lose atmosphere, altering every future discussion. This could invite the same conflicts seen in other communities. Amherst has cultivated a cooperative culture, which is currently fragile, and we need to consider how to navigate these discussions going forward. Past grievances linger.” He pointed out that this year’s budgeted cost of living increase for union contracts under negotiation is two percent, which won’t cover the rise in health insurance co-pays and deductibles.

Devlin Gauthier Advocates for Increased Funding for Schools
Devlin Gauthier countered the claim that deviating from equal increases would spark interdepartmental conflict, asserting that such disputes are already evident in the current discussion on school funding. She highlighted the potential fact that while the library might face a loss in federal funding, the closure of the federal Department of Education could lead to a $2 billion loss in public school funding at the state level.

She asserted, “I don’t believe that this year’s increased needs are likely to diminish next year. The adjustments I advocate for should adjust the foundational budget. The current base lacks equity. Schools are also affected by rising insurance costs. We cannot operate as a completely isolated entity amid these pressing challenges. We cannot keep sacrificing our students and teachers annually to demonstrate to the state that there’s a problem. We must strive to rectify what we can.” She also pointed out that the charter designates the Budget Coordinating Committee—which includes representatives from the town staff, the Town Council, schools, and the library—as responsible for long-term financial planning, rather than solely the council or Finance Committee.

The debate regarding increased funding for schools will continue at the Town Council meeting on Monday, March 24. The Finance Committee will discuss the regional school budget on April 1. Hanneke suggested adding a meeting on March 25, and the committee concurred. The Town Council must approve the regional budget before the annual town meetings of Leverett, Shutesbury, and Pelham in late April and May. The elementary school budget is set to be approved along with the overall budget before June 30, with Finance Committee discussions scheduled for May.