The Needham Select Board voted unanimously on Jan. 7 to open the preliminary list of articles for the 2025 Annual Town Meeting; the warrant is scheduled to close Feb. 11. The motion to open the warrant passed without recorded opposition.

Why it matters: staff told the board that revenue estimates for fiscal 2026 will likely be insufficient to fund all operating and capital requests from town departments and the schools, requiring difficult trade-offs during the budget process.

Warrant preview. Town staff walked the board through a broad preliminary list of potential warrant articles, including opioid-program funding, a request for seed money and matching grants for climate-action work, a five-year review of a previously funded classification and compensation study, community-preservation-project submissions and several zoning or planning items that may or may not appear at the May meeting. Staff said accessory-dwelling-unit language could be required if the state implements statutory changes.

Budget outlook. Town staff told the board they are working on FY26 revenue estimates and currently assume a 10% increase in health-insurance rates; staff said an expected 37% year-over-year increase for municipal-school IT (roughly $500,000–$600,000) also figures prominently in the gap. The presentation recommended using free cash sparingly for recurring items and noted that while free cash remains positive, it may not be a sustainable source for structural costs.

School budget. The presenter said early school projections show a preliminary request roughly in line with earlier information the board had seen — approximately a 7% increase in the schools’ first-pass number — and that final figures will be coordinated with the school committee.

Next steps. Staff will continue refining revenue and expense estimates, provide updated proposals at future Select Board meetings, and pass a full set of recommendations to the Finance Committee and the School Committee for further review.