Several New Ipswich department heads said they can fund employee raises within their default budgets, presenting options to the Select Board Tuesday as officials weigh whether to move forward with wage increases this year.
The board had previously asked departments to review spending plans after voters rejected the proposed budget in March, triggering a default budget that did not account for planned raises. Department heads told the board they could absorb the costs through internal adjustments.
While no formal vote was taken, Select Board members indicated support for allowing department heads to manage their own budgets to implement increases.
“We still do like to allow our department heads to manage as much as possible, how their department is run,” said Select Board Chair Jason Somero.
Police Chief Mike Abel said he analyzed both 2% and 2.8% increases — the latter matching what had been proposed in the original budget. The raises would apply only to eligible employees, excluding recent hires or those who had already received step increases.
Abel estimated a 2% increase beginning May 1 would cost about $7,000, while a 2.8% increase would total $9,410. He said the funds could be reallocated from several budget lines, including part-time wages, overtime, hiring funds, education and court labor.
Abel said it was important to him that his officers see an increase this year.
“They’re feeling the increase of cost as well, we’re not immune to that,” Abel said. He said that was true of all town employees. “We all work very hard, and have a lot of pride in our job. Many of our employees are working beyond our job description.”
Department of Public Works Director Peter Somero said a 2% increase for three eligible employees would cost about $9,636 if implemented April 1, and could be covered by anticipated savings from switching health insurance providers. A 2.8% increase would also be feasible using a combination of insurance savings and funds allocated for CDL training.
“It’s comfortable, I’m comfortable with it,” Peter Somero said, of being able to accommodate raises.
“And it doesn’t tap into salt,” said Jason Somero.
Parks and Recreation Director Mindy Buxton said that because her staff are seasonal, they do not get cost of living increases.
Town Administrator Debbie Deaton said providing raises for all town office employees would cost approximately $32,604. She said the increase could be offset through lower insurance premiums, delayed benefit enrollment for one employee and reduced legal expenses compared to the previous year.
Jason Somero said the areas the funds would be taken from appeared to be reasonable.
Giving raises under a default budget
The board also weighed a potential legal obstacle to implementing raises under a default budget, stemming from a 2014 voter-approved warrant article requiring “voter approval for any adjustments to town employee wages,” including new positions, raises and bonuses.
Town officials said guidance on the article has shifted over time.
In 2015, the town’s attorney advised that raises and staffing changes would need to be built into the proposed budget in order to meet the voter-approval requirement.
However, Select Board Chair Jason Somero said more recent legal opinions have taken a different view. In 2022, when the town sought clarification during police department hiring, and again in 2023, attorneys advised that the article is considered advisory. That guidance cited state law granting the Select Board authority to administer the budget, which cannot be overridden by a warrant article that does not carry statutory force.
Despite that interpretation, Somero said the board is mindful of voter sentiment following the March election, when residents rejected the proposed budget, defeated several spending articles and passed a petition article seeking to cap the town budget.
“And it did not fall on deaf ears,” said Jason Somero.
Board members agreed to take additional time to consider the issue. Members Lou Alvarez and Joe Somero supported delaying a decision by one week.
Somero said the board intends to revisit the matter at its next meeting April 7 and make a determination.
“It might need thinking over, but not kicking the can down the road for six months,” he said. “Our employees deserve a clear response from the Select Board.”
The board will continue the discussion at its next scheduled meeting at 5 p.m. April 7 at the town office.