East Hampton leaders warn of $3.8M budget gap and possible 2.5% override

Mayor Derby told the School Committee that city finance officials identified a wider‑than‑expected budget shortfall and have formed a cross‑department budget task force to evaluate options. He said the city expects to request a 2.5% override under Proposition 2½ to close an estimated $3.8 million gap and has instituted a spending freeze while it finalizes options.

“We are going to be requesting a two and a half override… about a $3.8 million gap that we can't fill,” the mayor said, adding that the task force includes school committee and superintendent representatives. Committee members affirmed engagement with city leaders and emphasized the desire to minimize impacts on services and students.

Superintendent Bal and school committee chair Laura Scott said the district is participating in the task force and will provide updates to families as firm decisions are made. Administrators said they are exploring spending adjustments and alternative revenue sources (circuit breaker, school choice, extraordinary relief) and stressed that rumors should be routed to official channels.

Committee members said they appreciated transparent, cross‑department collaboration and committed to continuing outreach so families and staff have accurate, timely information as the city works through options.

Next steps: the task force will continue scenario planning, the city will brief City Council on a potential override, and the district expects more detailed updates at upcoming school‑committee meetings.