Lakeville Select Board begins preparation for future budget shortfalls

LAKEVILLE — The Lakeville Select Board discussed early strategies to cover future budget deficits during a meeting on Tuesday, Aug. 5.

Lakeville faces future budget deficits — something officials have been aware of and are now preparing for. During the meeting on Tuesday, the board discussed their initial steps in navigating Covid-era federal relief funds drying up and increases to expenses that have left gaps in next year’s budget.

Town Administrator Andrew Sukeforth said the town is facing budget pressures from increase in fixed insurance and pension costs, rising education costs, and a reduction in federally funded state-aid.

“The pressures from the federal government down to the state is going to affect us next year,” Sukeforth said.

With limited increases to revenues, Town Finance Director Michael Ellis said the town is strategizing ways to keep up with the biggest stress on the budget — education — which makes up about 60% of the entire budget.

Ellis explained the town’s tax levy, or total revenue Lakeville generates through property taxes, isn’t enough to keep up with the increase in both fixed and unexpected school expenses. He hopes new development in the next few years can increase revenue, and fixed costs start to decrease to close the budget gaps.

The town can’t control fixed costs that include health insurance, liability insurance and pension costs. A single student can cost the town up to $15,000, and with the unpredictable rate of new students, Ellis said unknown costs are a large hurdle they are working to account for.

“Andrew has a lot of great ideas… we’ve tried to cut any budget lines with excess down to the actual. We’re not leaving a lot of meat on the bone. We just made it in FY 2026, so FY 2027 is going to be interesting,” Ellis said.

Ellis said the town must work toward balancing the revenues and expenditures. If not prepared, the deficits would threaten the town’s budget, which is responsible for funding education, emergency services and public works.

“We’ve seen this coming for the last three years,” said Select Board Chair Maureen Candito.

Candito also noted the budget strain of inflation and lack of Covid-relief funds, and that she is glad officials are looking at the budget gaps ahead of time.

Ellis said he and Sukeforth are preparing for a theoretical “doom and gloom” budget situation now, so the town doesn't face them in FY 2027. By using data from the previous two fiscal years, they are creating early budget estimates.

“It’s very early to be looking at this, but I agree doing it early is best so we can chart out where we started and where we landed,” Ellis said.

Sukeforth said he plans to give quarterly updates on their budget strategies as they work to get a head start on their strategy before they create the FY 2027 budget this Fall.