BCAT News

The following is a letter to the editor and does not necessarily reflect the opinion of BNEWS. 

IS BURLINGTON FACING A FISCAL CRISIS?

At a recent Ways and Means Committee meeting, the tough fiscal decisions for Lexington were raised as a possible future problem in Burlington. After voters approved a Debt Exclusion for a new Lexington high school costing $666 million last year, the Town’s governance realized that having residents vote again on an override to support more tax revenue to maintain current levels of service for fiscal year 2026 was not an option. This decision resulted in a planned reduction in the number of teaching staff at the school. Lexington’s difficulties were spelled out in digital media and on the local news station. One reason Lexington cited for staff reductions was rising fixed costs, such as health care and pension liabilities, which are the same constraints on the Burlington budget.

However, Burlington has been prepared for a situation like this through conservative fiscal management by its Ways and Means Committee and the Select Board over the years. The reflection of their wisdom has resulted in a positive “Excess Levy Capacity”. This should not be confused with the 27.8 million (per the audited financial statement of 6/2025) in Free Cash that the Town has, incredibly, accumulated to help reduce debt and pay as you go for Capital projects. Excess Levy Capacity is not a reserve of assets but rather a taxing mechanism that allows town management to raise tax revenue that has already been authorized but not yet been levied.

For comparison, Lexington has only $86,000 in Excess. Winchester, which recently disapproved its override, has no Excess; Malden, which also disapproved its override, has no Excess; and Arlington had its override approved but only has $128,000 in Excess. Boston has no excess. Burlington has 17.8 million (per the audited financial statements of fiscal year 6/2025). The town governance has the flexibility to address financial instability as it rises rather than pursuing a 2.5% override. Compared with a statewide report from the Division of Local Services (DLS), Burlington ranks 13th among 351 towns and cities with the highest Excess.

Burlington faces the same fiscal challenges as other towns and cities in maintaining the level of service residents expect. With hopes of economic development, productive mixed housing, and conservative cost management, the foundations of our fiscal system are strong upon which Burlington can continue to grow.

James McNiff