Cumberland council approves FY2024–25 general fund after shifting school fund balance to debt service accounting

The Cumberland Town Council approved the town’s FY2024–25 general fund operating budget on a 6–1 roll call after an amendment to reallocate small community outreach grants.

Mayor Muddam told the council the amendment does not change the total budget but shifts how the town records school construction payments and the school housing aid delay. "That portion of the fund balance, which is $488,775, would go what's paying the payment, on the school construction," Muddam said, describing the change as accounting to preserve maintenance-of-effort while funding capital costs.

Why it matters: the mayor said the town faced a shortfall in school housing aid and was using departmental efficiencies to balance FY2024, while the FY2025 proposal relies in part on accounting moves and a forthcoming catch-up payment from the school department. Muddam framed the change as a way to avoid increasing the levy beyond what had been set while ensuring school capital payments are made.

Councilors debated timing and practical impacts. Councilor Bolio asked when a final vote would be required; the mayor said collections make June the likely window. Councilor Mativia pressed whether using fund balance could jeopardize classroom funding; Muddam said it would require discipline but is an appropriate short-term measure. The mayor also said remaining decisions on school operating choices would rest with the superintendent and school committee.

Small reallocation approved: councilors also unanimously approved an amendment moving unused Cumberland Fest funds into other community grants, increasing Franklin Farm’s allocation and the Cumberland Land Trust’s allocation so those groups could claim funds in the budget year. The final budget passed by roll call 6–1, with Councilor Bradley opposed.

What’s next: the council adopted the ordinance as amended; the mayor and school department will proceed with the accounting changes and maintain dialogue with the school committee on any subsequent amendments.