Massachusetts passed a law in 1980 that limits the amount of property taxes a city or town can collect. That law, known as Proposition 2 1/2 caps annual increases at 2.5% (plus new growth).  While this law was designed to keep taxes predictable, lawmakers anticipated that 2.5% increases would not always be sufficient to maintain city services. As a result, they gave the voters the power to approve local tax increases to fund the services they believe are necessary and valuable through overrides or debt exclusions.  An override increases the total tax levy amount and is best suited for operating and recurring costs. A debt exclusion is an increase that only lasts as long as it takes to pay off a specific large expense, like a building.  Over time, inflation has regularly exceeded the law’s 2.5% property tax limit, making it difficult for cities and towns to fund schools, public safety, and municipal services without seeking regular overrides to help bridge the gap. For this reason, many Massachusetts communities have needed to pass overrides in recent years, including our neighbors in Arlington, Belmont, Medford, Melrose, and Stoneham.

Winchester last passed an override in 2019. The override was designed to last three to four years. With conservative financial management and additional Covid funding, the town was able to stretch the override out for seven years. Despite those best efforts, the town has repeatedly faced a growing structural deficit of millions of dollars that it has funded through shrinking reserves.  With significant budgetary shortfalls looming, the town has spent much of the last year undertaking a State of the Town process to create a long-term, comprehensive plan for both our schools and town services. The process was led by the Select Board and included representatives from the School Committee, the Finance Committee, Planning Board, and Capital Planning Committee. In addition, seven at-large members brought diverse perspectives—from young parents to a former Select Board chair to a former superintendent of Arlington Public Schools.   Together, the group worked to build a plan that is rigorous, balanced, and forward-looking—one that supports strategic and essential investments in school and town services, supports growth of non-property tax revenue, minimizes impact on taxpayers, and rests on a foundation of strong financial stewardship. You can read the State of the Town’s findings and detailed report here.(https://www.winchester.us/1307/State-of-the-Town)  This report clearly lays out why an override is needed, alongside  the many other steps the town is taking to minimize costs to taxpayers and put Winchester on a healthy and sustainable financial path. You can also find more details about why Winchester needs an override here.(https://www.yesforwinchester.org/why-an-override)

Click here (https://www.yesforwinchester.org/what-is-at-stake)to see what our town stands to gain - or lose - depending on the result of the override vote.

If the override does not pass, things will not stay the same. Costs will continue to rise while revenue stagnates, creating a larger deficit gap. There will be real and immediate cuts to our schools and the municipal services our residents rely on. And in the end, waiting will cost more money down the road. You can read more about what is at stake here.(https://www.yesforwinchester.org/what-is-at-stake) .

Please see the summary letter and detailed override plan from the Select Board here.(https://www.winchester.us/DocumentCenter/View/13271/Select-Board-Letter-and-Detail-on-State-of-the-Town-and-Override) Tax implications are detailed both in the summary letter, as well as on slides 7 and 24-25.

A key part of the State of the Town’s work was to explore tools and programs to mitigate the impact of an increase in property tax on low-income households.  Under state law, towns can create and expand programs to provide targeted tax relief to low-income seniors and veterans. Communities can also create Residential Exemptions, which shifts a portion of the tax burden away from lower-valued properties. Taken together, these measures help balance fiscal responsibility with social fairness.  In preparation for the override, the Select Board worked with the Council on Aging and the Veterans Agent to improve programs focused on low-income seniors and veterans, including:  • Senior Tax Deferral Program - allows qualifying seniors to defer up to 100% of their taxes, with the balance to be settled when there is a property sale or an estate event • Senior Circuit Breaker - allows seniors to claim exemption amounts • Senior Volunteer Program - allows seniors to volunteer for town entities in exchange for property tax reductions  • Veteran Exemptions under the HERO Act The Select Board is also discussing the creation of Residential Exemption program, which would allow the town to shift some of the property tax burden away from homes with values below the town’s median.  You can find more details about the efforts the Select Board is making to minimize the impact to taxpayers here (https://www.winchester.us/DocumentCenter/View/13271/Select-Board-Letter-and-Detail-on-State-of-the-Town-and-Override)(please see the summary letter and slides 27-28). It's also important to remember that local taxes help the most financially vulnerable residents of Winchester. No one wants a neighbor to be taxed out - and that’s why these programs exist. At the same time, local taxes ensure we can support those who need support and sustain the services and infrastructure we all rely on.

With significant budgetary shortfalls looming, the town spent much of the last year engaged in a State of the Town process to develop a long-term, comprehensive plan for both our schools and town services. The State of the Town Committee worked to build a plan that is rigorous, balanced, and forward-looking—one that supports strategic and essential investments in school and town services, supports growth of non-property tax revenue, minimizes the impact on taxpayers, and rests on a foundation of strong financial stewardship. You can read the Committee’s findings and detailed report here.(https://www.winchester.us/1307/State-of-the-Town) Based on those findings, as well as input from Town Meeting Members, Town Committees, and the public, the Select Board voted to place a $11.5 million override on the March town election ballot. You can read more about their decision here.(https://www.winchester.us/DocumentCenter/View/13271/Select-Board-Letter-and-Detail-on-State-of-the-Town-and-Override?fbclid=IwY2xjawQLHTpleHRuA2FlbQIxMQBzcnRjBmFwcF9pZBAyMjIwMzkxNzg4MjAwODkyAAEecq4czolk-CbnhidzmoqVvTJnHiKlz0r2lDUzhld6iTEWlT2_qpL5EqAtUJo_aem_YXUo9LKBQZhwxxuBYoslZg)

When costs rise and budgets can’t keep up, some “belt tightening” must occur. But Winchester has operated with a lean budget for years. At this point, further cuts would jeopardize our schools, our safety, historic town buildings, and public services [see what’s at stake](https://www.yesforwinchester.org/what-is-at-stake). Inflation has hit all city and town budgets hard in recent years, especially in key areas like transportation, healthcare, and construction. This is why towns all over the state have had to pass overrides in recent years, including our neighbors in Arlington, Belmont, Medford, Melrose, and Stoneham. Winchester has been able to delay an override for this long due to careful governance and strong financial management. The Town has regular turn-backs exceeding 1% of the budget, has nearly fully funded its pension obligations, and has created concrete plans to address our other long-term liabilities. Winchester’s government is well run from a fiscal standpoint: we are one of just 14 towns and cities in the Commonwealth to hold a AAA bond rating from Moody’s – and one of only two towns with our profile: a suburb of Boston with over 95% residential real estate.  Despite this responsible financial management, we’ve reached a point where an override is necessary to avoid substantial cuts to our schools and town services, and to ensure that our town remains the wonderful community we are proud to call home.

Our Winchester community has always supported and taken pride in our schools. In recent years, given critical building needs, that support has primarily focused on major capital projects, including the full rebuild of Lynch Elementary School.  Given budgetary constraints, however, Winchester’s per-pupil funding is below that of many peer communities and much of the state: In 2024, for example, we were 290th out of 397 districts in total per-pupil expenditures [source](https://profiles.doe.mass.edu/statereport/ppx.aspx). While our state test scores and school rankings far exceed our per-pupil spending, those outcomes depend in part on teachers going above and beyond – often without the resources and support they need. The scores also reflect parents who supplement instruction with private tutors to help cover the gaps – effectively creating a “shadow per pupil” cost. That reality is unfair to students, who should not feel like they are falling behind when updated curricula and proper tier II support at school could address challenges earlier and more effectively. It is also unfair to families who can’t afford tutoring or for whom tutoring causes a financial hardship.  While Winchester will never rank at the top of the state in per-pupil spending given our primarily residential tax base, our long-standing reputation for academic excellence requires maintaining programming breadth, advanced coursework, and well-being supports. Recent reports have also identified critical needs in our schools that are not being met, specifically around literacy, math, Tier II supports, and mental health support. There are also state mandates – including DESE’s Literacy and MTSS Frameworks – that require our schools to address some of these needs. To be clear, these aren’t “frills.” It’s about funding the basics: ensuring we have updated curricula and instructional support that meet state standards and keep up with schools around the state and country. Failing to pass the override would prevent these necessary and long-planned improvements, resulting in  real harm to our teachers and students, and ultimately costing the district more down the road in remediation efforts.  And that’s not all. Failing to pass the override does not mean maintaining the status quo. It means very real cuts to our schools, including teacher layoffs and increasing class sizes, along with other substantial reductions.  See what is at stake here.(https://www.yesforwinchester.org/what-is-at-stake)  You can find more details about the efforts the School Committee has made to reduce costs – including internal efficiencies, resource balancing and union negotiations – as well as the analysis behind its limited override request here.(https://www.winchester.us/1307/State-of-the-Town)

The district and School Committee have committed to a much-needed renovation or rebuild of Muraco Elementary School. As part of this plan, the district applied for – and was recently accepted into – the Massachusetts School Building Authority (MSBA) program. This program works with towns to help plan, design, and build schools, and also provides important funding to support school building projects. The next required step of the MSBA program is a “feasibility study,” which will cost $1.5M-$1.8M. The feasibility study will result in the town analyzing various designs and then picking one, which the town will vote on in the fall of 2028. The override is key to keeping a new Muraco on track. The funding for this feasibility is included in the proposed override. If the override does not pass, the feasibility study would be delayed, which could delay the project. Additionally, a failed override could also increase the cost of a new Muraco. Winchester is one of only two towns in the state with our profile to receive a AAA bond rating. A failed override could jeopardize our AAA rating, making a new Muraco and all major capital projects more expensive (and thereby potentially making it harder to rally community support/votes behind the Muraco project).

While the town is taking every possible step to raise revenue (please see the State of the Town summary report here)(https://www.winchester.us/1307/State-of-the-Town), the reality is that Winchester has a low commercial tax base, with very limited available space for new development. The highly residential nature of our town gives it a wonderful neighborhood feeling and great small-town character, but it also means we rely heavily on residential taxes. The only way to significantly impact town revenue is through property taxes.

The Select Board, Planning Board, and the State of the Town Committee have diligently worked to make the most of potential development areas. The town’s primary economic development strategy is focused on mixed-use growth, particularly on North Main Street, where the Planning Board and Town Meeting have completed major upzonings. This has led to the approval of the first project in the upzoned corridor: 972 Main Street, a residential building with commercial space on the ground floor, replacing an abandoned building. Additional projects are moving forward. The Waterfield Lot, next to the Winchester Center commuter rail stop, and the Washington/Swanton Lot are currently in the development process and hope to break ground in the near future. The town also continues to work on adding mixed-use development to the Center. The most notable project is 10 Converse, where a large condominium development with ground floor retail is being reviewed by the Planning Board. While Winchester has very limited space for large-scale commercial property, potential use rezoning in the Holton-Cross Light Industry area may offer an additional opportunity and can be pursued by the Planning Board.   These projects - and the residential and commercial revenues they will generate - will add to our resources and are actively being pursued by the town. But they will not add enough to solve the structural deficit created by Proposition 2 1/2. Unless Winchester transformed itself into a commercial and industrial center - a generational effort that would significantly change the character of our town - periodic overrides will always be necessary.