Share This Article
With Sudbury’s finances balanced for Fiscal Year 2027 (FY27) but a possible structural deficit looming on the horizon, the Town is launching a new FY28 Budget Working Group. Its first meeting is Thursday, June 18 at 6:00 p.m. at the Sudbury Police Station Training Room. The meeting is hybrid so residents can also join via Zoom. (Agenda)
The agenda for Thursday’s session includes introductions and a discussion of the group’s purpose, a review of the FY27 budget, a look at three-year projections, a discussion of the FY28 budget-building timeline, and planning for future meetings.
Why FY28 Matters
Sudbury residents have heard rumblings about fiscal pressure for over a year. Town Manager Andy Sheehan warned the Select Board in late 2024 that the Town’s finances were balanced through FY26 but were facing projected deficits in FY27 and FY28, driven by rising fixed costs including insurance and benefits. The approved FY27 budget totals $138,943,141 and didn’t require an override thanks to higher-than-expected revenue.
Earlier this year Finance Committee members expressed appreciation that the FY27 budget was presented without the need for an override, but FY28 could be a different story. To be clear: no override amount has been proposed by the Town Manager, because the Town is not yet in the process of building the FY28 budget. The formation of this working group is the beginning of that process.
Several factors could reduce the forecasted deficits considerably, including refined forecasting for both revenue and expenses as the Town gets closer to FY28.
The Cost Drivers
The pressures behind the FY28 concern are not unique to Sudbury, but they are real. Fixed costs like health insurance and retirement obligations have been growing faster than the revenue Sudbury is permitted to raise under Proposition 2½, the state law that caps annual property tax increases at 2.5% absent a voter-approved override.
On top of those recurring pressures, Sudbury’s two school districts have stretched their budgets about as far as they can go over recent years — to the point that Sudbury Public Schools (SPS) needed increased guidance for FY26 to fund an Assistant Principal position. Both SPS and Lincoln-Sudbury Regional High School needed increased guidance from the Town when building their FY27 budgets.
Town Manager Andy Sheehan outlined the complete picture during his annual presentation of the financial condition of the Town late last year. (Details here and presentation embedded below)
What to Expect Thursday
The group’s first session will likely be more orientation than action. The agenda includes introductions, an overview of the group’s charge, and a first look at three-year projections. But the projections will set the stage for what is expected to be a consequential budget cycle.