By DAN TOMASELLO

LYNNFIELD — With the holiday season now in the rearview mirror, town officials are now gearing up for budget season this winter and spring.

Town Administrator Rob Dolan said fiscal year 2026 is going to be a challenging budget year during the Finance Committee’s recent Budget Summit.

“Every year when we start the budget process, you can count on someone in my position saying it is going to be a really hard budget,” said Dolan. “It’s true. Sometimes when we start that way, it can be demoralizing or upsetting. I don’t want that to be the case. And although it will be a very difficult budget, it doesn’t mean we can’t do great things and we can’t improve every department in the town of Lynnfield.”

Dolan said new growth will be “stagnant” in FY26. He said Toll Brothers’ Willis Brook at Lynnfield 66-unit over-55 development located at 1301 Main St., which was formally part of the Sagamore Spring Golf Club, will begin being constructed later this year.

“That will be hitting the books in 2026, so there is some hope on the way,” said Dolan. “I don’t envision new growth being anymore than last year.”

Dolan is also anticipating that “state aid will be stagnant” during the next fiscal year.

“The state is not hitting any of its budget revenues, so I envision an increase of 1 to 2 percent in state aid,” said Dolan. “That doesn’t include the assessments that the state puts on us which includes but is not limited to pension liability and the vocational school.”

Dolan said local receipts that include fees, permits, licenses, motor vehicle excise taxes and the local meals’ tax option “will be good” in FY26. He said a number of residents have been applying for building permits.

“That will probably be up 1 to 2 percent,” said Dolan about local receipts.

Dolan said the town’s health insurance provider, the Group Insurance Commission (GIC), “continues to be a potential budget buster.”

“We are in the most economically friendly program that exists, which is the GIC,” said Dolan. “Over the last 14 years, the average increase of the GIC has been about 3.5 percent. Last year was 9 percent. This year, they are trying to avoid a midyear assessment of rates. That is not a good sign for GIC rates next year.”

Dolan said the town has a “barebones administrative staff.”

“We have no human resources director and we piecemeal together our IT,” said Dolan. “We have an assessor that is split between three communities and a DPW director who is excellent at what he does when we are paying 50 cents on the dollar, which was a great bargain with the Lynnfield Center Water District. That is called regionalization and shared services. I have always believed in it and it is going to be the wave of the future, but it is something that Lynnfield has to do. One, we are a community of midsize that can do it. Secondly, the number of people going into public sector work, particularly locally, has never been lower.”

Dolan said all of the collective bargaining contracts with the various unions will be expiring on July 1.

“That happens every three years,” said Dolan.

While Dolan said local officials have worked to “hold the line” on spending and contractual increases the past seven years, he said the town does not “have the money to make” additional investments in town departments such as the schools. He said it will be up to the community to decide whether they want to “invest more in collective bargaining contracts and benefits than we have in the past.”

School and town employees have received 2 percent raises in their respective union contracts the past three fiscal years.

“I have never signed a contract for more than 2 percent,” said Dolan.

Similar to previous years, Dolan said department heads will “manage a balanced budget with significant struggles.”

“We will do that,” said Dolan. “Everyone will basically get not what they want, but what they need. Regardless of the pain that may be caused or the difficult decisions that must be made, we cannot and will not put our community in financial instability or crisis. That is our primary job. By law, we must approve a balanced budget based on real revenues and real expenditures. Regardless of what it takes to achieve that, it is our charge and it is our responsibility. That is our starting point.”

Schools’ challenges continue

While Superintendent Tom Geary said the School Department’s current operating budget for FY25 is “on track,” he said it is “pretty tight.”

“Special education costs have continued to increase,” said Geary. “These are costs we can absorb this year with savings, but it will be a shift of funds from other areas. That is our biggest area of concern right now, but we will be okay as things stand today.”

Geary said Lynnfield Public Schools “has a lot to be proud of and a lot to celebrate as a district.” He said students have continued “scoring high” on Advanced Placement (AP), MCAS and SAT exams. He also said all of Lynnfield High School’s athletic teams made the state tournament last fall, and performing arts students have shined on the stage.

“We need financial support obviously to continue moving in the right direction,” said Geary. “Given the budget climate, it is difficult to sustain never mind grow. We had to eliminate several positions from our budget last year, and the pain of that continues. We cut a significant amount administratively, and I think we are as lean as any district that I know of in the area Central Office-wise. We are still doing the work and we are still making it happen for our students. We tried to keep those reductions as far from the classroom as we could, and that will be our mantra going forward.”

Geary said he and Assistant Superintendent Adam Federico met with the School Committee during a workshop in November to discuss budget priorities for FY26.

“It’s an ongoing discussion, but these priorities will guide our budget discussions over the next few months,” said Geary. “As far as our operating budget, we are still working on a first draft. I would put all of our recommendations under the heading of what we need to do to elevate the district. In my mind, the status quo isn’t an option.”

Geary said the School Committee has begun contract negotiations with the Lynnfield Teachers Association (LTA).

“Those are obviously discussions and costs that will take a considerable amount of time,” said Geary. “It will not only drive our budget, but also drive the financial position of the town to a degree. We are a long way away from having a direction at that point, but we hope to get there.”

The LTA wrote on its Facebook page that the teachers’ union is off to a “strong start to negotiations.”

“We are committed to fully honest and transparent bargaining,” the LTA wrote. “We are always stronger together.”

Geary said during the Budget Summit that out-of-district special education costs will be a major focus area in FY26.

“We aren’t able to educate all of our students in Lynnfield as needed,” said Geary. “Sometimes we have to educate them in other places. It is a legal requirement, and we have had a number of move-ins with complex needs at a growing rate faster than in my history in the town. When a child shows up, no matter what their need is, we educate them. Period.”

Geary said addressing aging technology will be another focus area for the School Department in FY26. He recalled that the School Department received $125,000 for technology expenses in the town’s FY25 capital budget, which he noted was less than the traditional $250,000 the school system has received.

“We are going to need to do some catch up work in that regard to get us back where we need to be,” said Geary. “Our infrastructure is aging and, in some areas, beyond aging. In addition, we are looking at a new elementary math curriculum that our teachers have dug into that we would love to be able to roll out next year.”

Additionally, Geary said “security cameras, PA systems and other safety measures” are needed capital expenses for the schools.

Geary said “budget transparency and communication” will continue being priorities in FY26. He said he is looking forward to “working collaboratively with all of the boards,” which he said is “key for us and the community.”

“We know it is a challenging time and we know a lot is up in the air, but we appreciate everyone’s commitment to the schools,” said Geary. “The town has always shown up for us. I look forward to working with everybody throughout the cycle.”

Dolan said Lynnfield and other school districts in the state have been dealing with “real challenges” the past several years.