The town of Wellesley barely had time to celebrate its recently approved $212M FY26 budget before turning to the sobering realities of planning for FY27 amidst economic uncertainties at the state and federal levels.

“There’s a lot unknown and the landscape changes frequently,” said Wellesley Select Board Chair Colette Aufranc, who presided over the meeting.

The Select Board convened an all-board meeting on Wednesday, May 14 at Town Hall to get feedback on the FY26 budget process, discuss the political and economic goings on beyond Wellesley, and peek ahead at possible FY 27 budget drivers (See Wellesley Media’s recording of the tidy 35-minute meeting). The Select Board also gave a glimpse at likely Town Meeting articles for the fall.

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FY26 budget planning feedback

At the meeting, the Board received feedback on the FY26 budget process, which for the second straight year included the Board giving other town bodies individualized budget guidelines that take into account the groups’ size and special circumstances.

Timing is always a concern for those planning budgets in town, especially in light of Wellesley’s Annual Town Meeting starting earlier than others across the state.

School Committee Chair Linda Chow said the Committee appreciated having the chance to meet with Select Board members and town leadership early in the FY26 budget planning process to share the school district’s outlook. “One possible improvement would be if those discussions could happen maybe a little earlier, even in the late summertime timeframe,” she said, noting that the school administration needs to present its budget to the School Committee in early December. It also might be helpful to have members of the Advisory Committee, which vets Town Meeting articles, in the loop. An ongoing challenge for schools is to align its budget with the district’s 5-year strategic plan as investments are pushed off to meet budget guidelines.

Library Board of Trustees Chair Marla Robinson also focused on the timeline, pointing out that boards barely have a few months after the new budget goes into effect to start figuring out the next one. A complicating factor this year will be negotiating a union contract that probably won’t get going until early 2026, she said.

Politics and economics

The meeting agenda then turned to an overview of the broader political and economic climate. Aufranc and other Board members have been staying informed in part by attending local and regional legislative meetings, as well as events such as the Charles River Regional Chamber’s Spring Business Breakfast earlier that day, where Federal Reserve Bank of Boston and current and former state economic leaders spoke.

“What we heard today is: data is sobering. This is just the beginning and things are likely to get worse,” Aufranc relayed. She said the state hopes to hold the line on an FY26 budget that lacks investment in new initiatives in order to protect reserves. The earmarks that Wellesley and other communities get from the state to support various projects could be at risk.

“There is serious pressure on the state budget, on communities, on businesses, and we should plan wisely and protect the progress we have made,” she said. “Overall, the message is to proceed with caution based on the best information we have. There are times to grow and reach, and there are times you just can’t… We need to be realistic.”

With the federal fiscal year starting in October, it could be a while before Wellesley has more certainty about the outlook, she said.

On the positive side, Wellesley has “a solid foundation” and strong reserves, Aufranc said.

One silver lining of the pandemic is that Wellesley now has a stronger playbook, including updated financial policies, for operating in times of crisis.

Looking ahead

Looking ahead to the FY27 budget, Wellesley will be negotiating contracts with all unions.

“It will be critical to settle modestly to maintain a balanced budget without seeking an override,” Aufranc said, emphasizing the need for boards and committees in town to work together.

While Wellesley looks ahead in its Town-Wide Financial Plan, the Board has not deliberated on the FY27 budget. “But I think it’s only fair to set expectations that this will be a tight budget year and it’s unlikely that there will be capacity for strategic initiatives or growth in personnel,” said Aufranc, who invited board and committee reps to come forward with possible budget drivers they see.

The town plans to keep its budget submission timeline consistent with those of past years, though will take into consideration comments shared by other board and committee leaders. The Select Board will start talking about the budget in earnest in August, and convene an all-board meeting in mid-September, as it did last year.

Fall Town Meeting preview

Wellesley’s next Special Town Meeting is anticipated to start Nov. 3 and last at least a couple of nights.

Some articles expected for this meeting will include those regarding:

Capital investments pushed off from the spring (Recycling & Disposal Facility administration building, irrigation at Hunnewell/high school field, etc.)
Human Resources work on its job classification system, including for information technology jobs