Possible Fiscal 2024 operating override under consideration

Photo courtesy of the town of hingham

November 30, 2022 By Carol Britton Meyer

Hingham voters could be asked to consider a potential override for Fiscal 2024, with the initial discussion starting Tuesday night in a joint session of the Select Board, Advisory Committee, and School Committee.

An override is a voter-approved, permanent tax increase designed to provide a community with the ability to generate sufficient revenues to fund costs that are likely to continue into the future -- such as annual operating and fixed expenses.

A presentation about the process and procedures for placing an operating override before voters at the 2023 Town Meeting and Town Election was the reason behind the meeting.

"We've received a number of [inquiries] about a potential override," Select Board Chair William Ramsey said. "We haven't had one [since 2010, when] we opened and staffed East Elementary School, so there are a lot of questions out there about how an override works."

At this time there is no set figure as to how much such an override might amount to since that number would be tied to the projected Fiscal 2024 budget deficit and other factors.

"This is a complicated process over the course of time," Town Administrator Tom Mayo said. "There will be other discussions when we will flesh out what the budget will look like. We usually have those numbers in January."

The Advisory Committee's recommendation is the primary one that will be presented on the floor of Town Meeting.

"We are trying to determine the appropriate next steps, and I and [Supt. of Schools] Dr. [Margaret] Adams will need to know what cuts would be required [in the respective school and municipal budgets] to reach a balanced budget," Mayo said. "Those numbers have not yet been determined -- we're actively working on it."

Any such override would be on top of the annual property tax increase allowed under Proposition 2-1/2 and the tax impacts associated with the recent Special Town Meeting approval of a new $113.3 million Foster School and a new $46.7 million public safety facility.

"We're trying to come up with realistic numbers that everyone can live with," Town Administrator for Finance Michelle Monsegur said.

Town Counsel John Coughlin outlined the legal process that an override involves, starting with the development of the proposed education and municipal budgets by school and town administration and continuing through the possible consideration of an override at the 2023 Town Meeting and Town Election.

There will be ample opportunity for citizen questions and comments leading up to Town Meeting.

  • Key components of the override process include:
  • a potential multi-year financial management plan among the Select Board, School Committee, and Advisory Committee regarding future budget commitments, based on the FY21 Financial Management Plan precedent;
  • that the Select Board has the sole authority to determine the override question format and to place an override question on the ballot;
  • budget appropriations under Article 6 require a majority vote at Town Meeting;
  • an override ballot question requires a majority vote at the Annual Town Election, which must be held by Sept. 15.

Statistics show that 47 Massachusetts communities proposed 84 overrides between FY20-23, with an approximate 79 percent success rate. The ones that passed ranged from a $10 million operating budget/building stabilization fund override supported by Winchester voters; a $9.5 million override approved by Shrewsbury voters for the municipal and school operating budget; and three overrides in the $5.18, $5.5, and $5.95 million range in Melrose, Arlington, and Norwood respectively.

Hingham has an override history of its own. Eight overrides were proposed from 1990 through 2010, with four losses and four wins.

Among the ones that passed were $875,000 in 1991 for the general operating budget; $485,508 in 1994 to fund school operating expenses; $753,682 in 2005 to fund school operations; and $1.1 million in 2010 for operation of the new East Elementary School.

Override requests that did not pass include a requested $950,000 in 1990 and $1.9 million that same year for school and municipal services, $1 million in 1992 for general operating expenses, and $1 million the same year to fund the general operating budget.

The FY24 budget calendar leading up to the April 2023 Town Meeting includes preliminary municipal and school budget development during November; initial hearings on preliminary budget requests in December and January; a January 2023 deadline to insert warrant articles, including Article 6 (the municipal and school budget); review and revising of proposed budgets to include potential reductions and/or additions, with override options in January and February; and final approval of the municipal and school committee budgets in March. At that time, the Advisory Committee will make its recommended motion for Article 6. Town Meeting warrants will be delivered to all Hingham households in April, followed by the April Annual Town Meeting and Annual Town Election.

In summary, passage of an override requires a two-thirds vote at Town Meeting and a majority vote of approval at the ballot box. Before an override can be considered, the Select Board is required to vote on whether or not to place an override question on the ballot.

Available municipal finance resources and tools include the town's financial and legal team; the five-year financial forecast;  a financial planning model; the Sustainable Budget Task Force and related report; and the potential multi-year Financial Management Plan.

School Committee Chair Michelle Ayer and Mayo both acknowledged that this will be another difficult budget process.

That said, "There's a real sense of collaboration and respect for each other after having gone through a lot together in the past few years," Ayer said.

"There will be a lot of scary words [mentioned], like 'budget cuts' and 'staff reductions,' and it's important to remain positive and for everyone to know that we have their best interests in mind."

Ramsey expressed appreciation and awe at the tremendous success with which funding for the new Foster School and public safety facility passed recently. "The fact that our community came together to support these projects [by such a wide margin] is amazing," he said.

Living in Hingham for 48 years has shown Ramsey that "our community is resilient and that we care about each other," he said. "The approach of the holiday season is for many of us the most joyous time of the year, but not for everybody."

Heading into the next few weeks, Ramsey urged community members to look out for their neighbors and for those in need to take advantageous of available resources. "Know that you are not alone and that we want to help," he said.

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