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Scotland officials flag $246,000 state revenue shortfall and possible budget shifts
Summary
Treasurer David Zito and town officials said state aid cuts and changes to motor-vehicle valuation threaten FY26 revenues, prompting discussion of CNR contributions, capital timing and a possible STEAP grant match; the board reviewed department requests including a $50,000 extrication tool for the fire department.
Treasurer David Zito presented the proposed FY26 budget and warned that the town expects a significant drop in state revenues, estimating a $246,000 shortfall that will widen the gap the town must cover.
The presentation, delivered during the Board of Selectmen meeting on March 26, said municipal revenue pressures include changes to motor-vehicle valuation and veterans' tax exemptions. "We will have a significant gap in State Revenues; they are expected to decrease by $246,000," Zito told the board while outlining department request details and potential offsets.
Why it matters: The shortfall, combined with declines tied to motor-vehicle revaluation and veterans' exemptions, will force officials to consider reallocations from Capital Non-Recurring (CNR) funds, changes to department contributions and timing shifts for projects such as the Town Hall renovation.
Key details from the treasurer's presentation included: current-year tax revenue collections of $4.61 million through February (98.7% of the full-year budget); total revenues of $5.5 million (87.6% of budget); and General Fund cash of $1.9 million as of Feb. 28, 2025, including two STIF accounts. Capital spending to date included $40,300 for fire department equipment and $13,800 in Kemp Road bridge engineering; $249,000 remained available in CNR funds.
Department requests and funding options outlined during the presentation: the fire department requested $50,000 to replace an extrication tool; Public Works requested an additional $5,000 for tree trimming and increased salt/sand by $9,000 to reflect current-year usage; Town Clerk proposed a $23,000 restricted-fund line item that does not draw from tax revenue.
Officials discussed offsets and contingencies: staff noted a potential $125,000 increase in CNR contributions and an additional $160,000 to allocate to the Town Hall renovation project to reach a projected $200,000; the town may be eligible for a $100,000 STEAP grant match if awarded.
Next steps: The board described the FY26 budget as a work in progress; officials will continue to refine assumptions about state aid, motor-vehicle valuation impacts and possible internal transfers. First Selectman Dana Barrow Jr. reminded residents that the board meets twice monthly as the budget process continues.
