GREENFIELD — In advance of Monday’s fiscal year 2027 budget hearing, Mayor Ginny Desorgher told School Committee members to expect a challenging fiscal year ahead.
Desorgher, who also serves on the committee, explained at Wednesday’s meeting that while she could not provide a specific amount that she believes the School Department should cut, the city is expecting a more than 19% increase in health insurance costs, to the tune of approximately $2 million. She said personnel cuts will likely have to be made, noting that she has been in touch with department heads to suggest reductions already.
“Last year, our total estimated charges were $5,369,155. In this year, it’s $6,040,806; it’s a negative loss to the city of more than [$600,000] that, in addition to the health insurance increases, make it extraordinarily difficult to balance this year’s budget,” Desorgher told the committee. “I’ve already been in touch with some department heads about cuts in budgets to personnel that we’ll have to be making. … We’re all in this together, and the budget does need to balance. I struggle with it, and I’m hoping that we’ll all work together to get to the finish line.”
Desorgher explained that, with new growth increasing annually at an average of $425,000 to $450,000, the city can only raise its tax levy by roughly $1.5 million.
When School Committee member Melodie Goodwin asked Desorgher whether she had a particular number that she would deem reasonable for the School Department’s FY27 budget, the mayor responded that she did not have a specific number yet. Desorgher said she met with Sean Cronin, a senior deputy commissioner with the state Department of Revenue, and Sen. Jo Comerford, D-Northampton, to brainstorm more financially sustainable health insurance plans for the city.
“I’ve already talked to department heads and I’m not anybody’s favorite today, but … these health insurance increases are not sustainable, and it’s the health insurance that’s killing us and it’s going on in every municipality in the state,” Desorgher said. “It’s not like the legislators are going to go after the insurance companies, so it’s a struggle that has to be fought on the local level and I am here with you as your mayor, saying this is a very big problem, and I appreciate the chance to bring it to everyone’s attention.”
School Committee member Elizabeth DeNeeve asked the mayor whether the city would be able to enact plan reform, or changes to copays and deductibles, for city employees in an effort to cut costs.
Desorgher said while the city has weighed plan reform as a potential option to lower its costs, it could only come amid union agreement and would put a financial burden on employees who are already grappling with a high cost of living. She noted that the city will be “bringing something forward in the next few weeks” related to plan reform that, if successful, will likely go into effect next year.
“If we do a plan reform, which we are looking at — and we have brought plan reforms up each year — that would mean that every union would have to agree with the plan reform. It’s a pretty hard time to ask, for a mayor who loves the employees, because we all go to the grocery store,” Desorgher said. “We know what’s happened to the price of food. We know what’s happening with the price of utilities. Everybody’s pocketbooks are pretty slim.”
DeNeeve offered to draft resolutions vowing the School Committee’s support for cost-saving insurance legislation, in an effort to push the needle toward health insurance affordability at the state level.
The School Committee will discuss its FY27 budget in greater depth at its meeting on Monday, March 16, at 6 p.m. at the John Zon Community Center.