Budget forecast sees red ink

Facing increases in health insurance costs and student enrollments as well as a possible decrease in state aid, the town could face close to a $4 million deficit next fiscal year, with deficits continuing until the 2017 fiscal year, according to town figures released Tuesday. A balanced budget is possible, according to the deputy town administrator, Sean Cronin, but only if there are no cost-of-living increases for town employees and no cuts to local aid, which he called “unlikely.” The town is guessing state aid will be cut 5 percent, and that there will be an 8 percent increase in health insurance premiums, as well as some increase in town and school personnel salaries. In that scenario, next year’s budget deficit could be up to $2.7 million, Cronin said. Higher costs are also predicted for special education and a new contract with teachers. While property tax revenues will increase next year, they will not quite cover the increases in expenses, Cronin said. - Andreae Downs