WINCHENDON — Winchendon town officials met on Thursday, Feb. 13, to address a projected $3,958,002 budget shortfall for fiscal year 2026. The discussion centered around whether the town should pursue an override, a voter-approved increase in property taxes that exceeds the limits set by Proposition 2½, to fund essential services.
During the Tri-Board meeting, which included the school committee, board of selectmen, and finance committee, officials reviewed the town and school district’s draft FY26 budgets and discussed their requisite financial needs. Town Manager Bill McKinney outlined the town’s estimated $39,793,160 budget requirement for FY26, with $19,287,470 (about 48%) allocated to the school district’s operating costs. However, projected revenue for the year stands at $35,835,158, leaving a $3,958,002 gap.
Budget Challenges and Concerns
McKinney identified pensions, health insurance, and debt as the three primary cost drivers in the town’s FY26 operating budget. For the FY26 budget, pension expenses are projected to cost the town $2,448,800 and are expected to increase by 10% annually. Health insurance costs are projected to rise by 16.4% this year, reaching $3,096,000 in FY26. The town’s debt obligations for FY26 amount to $1,315,000 but are expected to gradually decrease in future years.
Additional major expenditures in the FY26 budget include:
- Police Department: $2,151,950
- Fire Department: $1,804,950
- Department of Public Works: $1,828,190
During the meeting, some town officials expressed concerns about the feasibility of an override, with some questioning whether voters would approve a tax increase. Select Board Chair Richard Ward emphasized the need for providing a logical justification for the override to gain public support. Others suggested seeking alternative revenue sources.
School District Funding
Winchendon Public Schools Superintendent Marc Gosselin outlined three possible budget models for FY26:
- Level Service Model: Maintains current programs and staffing – $18,685,715
- Level Service Plus: Allocates some funding for new programs and adds positions to address immediate district needs, such as hiring a maintenance technician for building repairs
- Program Improvement Model: Funds new programs, including advanced placement courses, increases the instructional supplies budget, hires additional staff, and supports building maintenance to reduce reliance on reactive repairs. This budget would cost the town $19,287,470. Gosselin noted that the district is losing students to other schools through school choice, which ultimately increases costs for the district
In addition to outlining budget options, Gosselin identified five key priorities for the FY26 budget: maintaining class sizes as enrollment nears capacity, increasing support for students with special needs, improving reading and writing skills from PreK through 12th grade, refining curriculum and instructional strategies to enhance professional development for staff, and investing in initiatives that both close achievement gaps and expand access to quality education. He also noted that the district is losing many students to school choice, which ultimately increases costs.
Next Steps
With Chapter 70 aid—the state’s primary funding program for public schools—rising by only 1.83%, the Winchendon School District will receive $14,394,811 in state aid for FY26. To meet its financial needs, the district projects it will require an additional $6,850,740 from the town, a 6% increase from the previous year. Other revenue sources, including grants, state improvement programs, school lunch programs, and philanthropic donations, are expected to contribute $3,984,246.
With limited state funding growth, town officials must decide whether to propose an override or find alternative funding sources. Select Board Member Erica Eitland stressed the importance of supporting students, stating that if kids leave the district because they feel they don’t have a future here, the town must do more. She also highlighted that 1,200 students rely on the town for a proper education.
The decision on whether to move forward with an override will ultimately be left to Winchendon voters.