I was told that Moody's frowns on using Free cash (non-recurring) to fund operating budget, but the Comptroller's memo would make it seem that it is strictly a mathematical calculation that determines the bond rating. So I would like to understand from the SB/Comptroller if there is a qualitative component to their Bond Rating assessment. In general, it is risky business to hire new staff with non-recurring revenue, even if they are justified. (Personally, I think math interventionists should be prioritized in the existing school budget, but that's a whole separate discussion.)
I am sad, in general, that funding public education is such a struggle, and that like many MA towns we find ourselves in this position. In fact, we could be in much worse shape if not for fiscally prudent leadership over the past few years. We should plan on having conversations with our State legislators as part of the "state of the town" effort after we get through Spring Town Meeting. But I am focused on the fact that we will need to pass a substantial override before next year that can ideally last 3 (or preferably 5) years. Those of us who have been involved with nearly all of the override campaigns that have passed in Winchester, can appreciate that having broad support of the amount of the need by all town boards and committees is a huge plus in gaining the confidence of voters. It is also important to demonstrate that we, as a town, are disciplined with tax dollars, so we need to be thinking about that message as we enter this debate.
My sense is that using some (maybe half, but not all) of the Circuit Breaker balance could be a good compromise this year. Tho I agree it is not a preferred ongoing practice, a successful override plan could replenish the amount so we go back to the preferred approach (as it seems that Brookline intends). It is a common sense compromise that should be able to meet the needs of every board and also reduce the amount Moodys sees us taking from Free Cash for FY26 operating. Also, the schools have explained the one of the reasons the increase in school budget is unusually high this year is the way the contract was necessarily negotiated last time to bring salaries in line with peer districts. Now that they are in line, the annual increase will hopefully be less going forward. The union needs to understand the town's free cash is not unlimited.
IMO we should have passed an operating override already, since it has been no surprise the 2019 override had run its course. Since the CPA override was prioritized instead, it is my hope that committee does its part to leverage the CPA revenue for capital and other projects that can benefit from the state match, as soon as is possible. With a very. uncertain national and state economy, common sense approaches will be necessary to pass the next override.
