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SPENCER – Kicking off a Proposition 2 ½ override discussion, Town Administrator Jeff Bridges referred to “two numbers that went the wrong way for us this week.”
At the January 27 Board of Selectmen’s meeting, Bridges said the original estimate for what the town must contribute to Bay Path and Spencer-East Brookfield schools was $550,000. The actual number is $580,000, which does not include charter school or transportation costs, he said.
The Department of Education uses a formula to determine a community’s contribution to its schools.
The other number referred to news from the Amaya Health Trust provider that rates will increase next year between 10% to 20% with the average rise of 15%, the administrator said.
Bridges added that he is working with a company to bid out health insurance “to see options out there.”
Bridges elaborated on the DOE formula that uses local revenues and the assessed value of local property in its calculations.
He also spoke about a state law that says pension contributions must be fully funded by 2036. The administrator noted that costs rise $150,000 per year and the current cost of $1.6 million will double by 2036.
“Worcester Regional Retirement has a massive unfunded liability,” he said.
Although the town will receive approximately $60,000 in “unrestricted,” aid, new growth may generate around $100,000 and 2 ½ raises $450,000, “You are in the hole before you get started,” Bridges said.
Selectman Ralph Hicks noted that the School Committee was meeting on the same night and with collective bargaining in the works, may recommend a budget that is higher than what the state mandates.
He added that Town Meeting voters ultimately decide the school budget total.
Selectman Tony Pepe said the state formula is flawed, does not include rental properties in its calculations and assumes the town’s capacity to pay is higher than reality.
Letters to state leaders and lobbying for changes to the formula for years have not brought about improvements, Pepe said.
Hicks said that big cities “make noise and have clout,” while smaller communities like Spencer struggle.
Hicks noted, “There is no gumption in Boston to do the right thing…We are like the ant and Boston is the elephant. No one hears us because they are listening to the elephant.”
Bridges said Spencer has been able to “claw back some of its services,” over time, “but can never seem to get above the rim.”
Elaborating on a possible school budget, Pepe said he would vote against keeping a consultant on now that the district is no longer under financial receivership.
He said instead of putting additional grant money toward the David Prouty High School project, some of those funds should have been directed to the town.
Pepe also said he disagreed with the fact positions meant to be temporary because of COVID have continued in the schools.
“For conversation purposes only,” the town administrator drafted a possible scenario for a single override request this year encompassing FY26, FY27 and FY28.
The first-year request of $600,000 would pay for the school contribution, Spencer Rescue Squad, a highway department employee and another police position.
The second-year request of $590,000 would cover schools, payment for a half-year to fund firefighters currently grant-funded, the Rescue Squad contract increase and another police officer.
The third-year of $578,000 would fund the other half year of firefighters, cover schools, the Rescue Squad contract increase and a highway department position.
Pepe said he took a similar approach, comprised of three versions—a single ask, a two-year spread by individual requests and a third option encompassing the fire and police needs. He also put in $33,000 across three years to “attack the pension deficit,” and included funds for the roads.
His override proposal did not include the contributions toward the schools, which would stay in the operating budget.
Bridges said if the override is approved, it would “free up money on the town side to go toward pensions.” His approach tries to keep additions to the tax rate down, he said.
“I do like the public safety focus,” Selectman Jared Grigg said.
Selectman Gary Woodbury said they need to know the cost of maintaining what they currently have as “we’re in the hole as it is.”
Woodbury said next year the town will have a complete revaluation that should generate money. However, he said, taxpayers will be impacted by new school and new sewer costs, calling these “other avenues that are going to hit us.”
“It’s a one-time shot,” Woodbury said of the override request. “It needs to be well planned and well laid out.”
Board members agreed health insurance costs would be critical to their discussions.
With negotiations, Hicks stressed the importance of being fair to employees “without giving away the store.”
Bridges noted the difficulty of attracting and maintaining employees if they end up losing money if their salaries do not keep pace with health insurance increases.
Grigg said he would like to see how the school budget ties in, including the school debt figures to have the “whole picture.”
The town administrator said he should have a preliminary budget draft ready in a couple of weeks.
In the meantime, members said they would develop possible override questions, while Bridges talked about potentially having debt exclusions instead of lease agreements to purchase vehicles going forward.
