Limited Revenue, Rising Costs and State Policies Place Strains On Town Finances
The town of Westford is in a tight financial box. Town manager Kris Las calls it a “structural deficit”. For town financial policy makers, it is the 800lb gorilla in the room. If it is not tamed, tax burdens and town services will be negatively impacted. Westford Teacher’s Union President Kristina Jussaume framed the predicament, telling a joint meeting of the Select Board and Finance Committee: “the town needs more money; the residential property owners are overburdened ; something has to be done; to do nothing would be irresponsible.”
On paper, Westford appears to be sitting pretty. Our property tax revenues increase year over year. So what is the problem ? The town finds itself dealing with financial factors beyond its control. During this year’s finance committee meetings, Town Manager Las summarized these factors: union settlements, rising energy costs, rising solid waste costs, rising health insurance costs, and rising retirement contributions. Under the provisions of proposition 2 ½, which limits budget increases to 2.5% of the previous year’s budget, the town is not garnering the revenue it needs to keep pace with these rising costs. State local aid, particularly Chapter 70, critical for offsetting the revenue shortfalls caused by Proposition 2 ½, has not kept pace. Additionally, revenue sources, that historically supplemented residential property tax revenue are also drying up.
75% of the town’s revenue comes from property taxes. There are three classifications; industrial property, commercial property and residential property. Finance Committee Chair Kristina Greene presented an analysis of these revenue streams at a recent Finance Committee meeting. Her analysis extended over a ten-year period from 2017 to 2026. During that time revenues from industrial properties plummeted. Revenue from commercial property were stagnant, but the property tax burden on residential property dramatically increased from 85% of in 2017 to 94% today.
So what are we to do ? First, do not repeal proposition 2 ½, which is being suggested in some circles. Prior to that law, homeowners and businesses around the state were crushed by the double weight of state and local taxation. Some commercial properties, particularly in cities, were taxed at triple the rate of residential property. Arson was the way out for some. Second, increasing the burden on local commercial properties under current state tax policies will only drive out, what we now have, losing whatever relief they now offer.
The solution to our problem requires tighter fiscal management and innovation. Better state economic policy would also help. Management overhead in town departments has to be seriously reviewed and trimmed, union contracts must be reasonable. Town negotiators must bear in mind, contract settlements at the line level of service, ultimately cascade up to higher management. The revenue cutout allowed by the community preservation act must be re-examined, and perhaps most critically, a serious and thorough examination of regionalization is needed, particularly in the areas of public works and public safety. On the state level the sales tax must be repealed. Westford’s proximity to New Hampshire makes it virtually impossible to attract commercial business, which could lighten the tax load on town home-owners. A more equitable distribution of state local aid is also needed. Currently, revenue is taken from the towns and redistributed to the cities, where tax bases have eroded. These are challenging times we must communicate and work together and most importantly we must apply good sense.
SETTING THE RECORD STRAIGHT ON TAXATION
There Is No Work Around After A Failed Override Vote
Kristina Greene, Chair, Westford Finance Committe,
In response to IZON Reader From Nabnasset who wrote: “Money Isn’t Everything When It Comes to Education” in the February 14, 2026 issue, I’d like to clarify an important point.The writer states: “They [the Town] just increased all our housing valuations for our next tax bill, a classic workaround to a ‘no’ vote on the 2.5% override last year.” This statement is incorrect. The Town cannot raise additional tax revenue simply by increasing property valuations. Under Proposition 2½, the total amount of money the Town of Westford can collect from property taxes is limited to a 2½% increase per year (plus new growth), unless voters approve an override or debt exclusion at Town Meeting and the ballot. There is no mechanism—intentional or otherwise—for bypassing that limit through valuation changes. While an individual homeowner’s tax bill may increase by more than 2½% due to changes in property values, those increases are offset elsewhere and do not increase the total tax levy. It is also important to note that “New Growth” refers to taxes from new construction or property improvements—not rising market values. Increased valuations due to market conditions do not generate additional revenue for the Town. This is a common misconception, but there is no workaround after a failed override vote.
For more details, watch these videos
Budget Task Force – The Tax Levy & Proposition 2 1/2 and these videos from the state, https://www.mass.gov/info-details/proposition-2-12-and-tax-rate-process
WESTFORD GOES ALL IN FOR MINOGUE
Republican Challenger Sweeps 24 Delegates For State Convention.
Mike Minogue, a West Point graduate, combat veteran and very successful medical technologies entrepreneur ran the table last Saturday at a Republican caucus in Westford picking up 24 pledged delegates to support his bid to claim the Massachusetts Republican nomination for Governor this year. The Westford Republican Town Committee (WRTC) hosted the local caucus as a prelude to the 2026 Republican state convention to be held on April 25th in Worcester MA. The caucus was held at Westford Fire Department headquarters on Boston Road. 11 of the delegates were elected from a ticket of WRTC members and the remaining 13 were elected at large. All were residents of Westford. Minogue’s says that Governor Healey is vulnerable based on significant fiscal mismanagement, a failure to support an audit of the legislature, a dismal economic record and an oppressive energy policy. State elections will be held this November.
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