I have sent a message to the Hardwick Select Board with these details on April 18, 2026. The documents provided by our Town Accountant through Public Records Requests are available at the bottom of this page. These reports and figures are for FY 2026 so far (July 2025 – June 2026).
Documented Deficits (from Town VADAR Reports, printed April 12, 2026)
The Town’s own Expenditure Detail Reports show the following negative ending balances:
- 001-190-5240-0002 – Municipal IT Services: –$25,220.10
- 001-145-5700-0000 – Treasurer Expense: –$9,409.79
- 001-210-5110-0005 – Police Training Wages: –$9,491.31
- 001-151-5300-0000 – Legal: –$7,395.44
- 001-146-5700-0000 – Tax Collector Expense: –$6,382.09
- 001-135-5420-0000 – Accountant Expense: –$1,488.72
Combined overspending in these accounts: approximately $59,387 (NOT including snow and ice deficit).
These negative balances reflect posted expenditures exceeding the appropriations voted by Town Meeting for each separate line item.
Relevant Massachusetts Law
M.G.L. c. 44, §31 states: “No department financed by municipal revenue … shall incur a liability in excess of the appropriation made for the use of such department, each item voted by the town meeting in towns being considered as a separate appropriation,” except in narrow emergency cases.
Guidance from the Massachusetts Division of Local Services (DLS)
Following the Town Administrator’s suggestion, I contacted DLS. They referred me to two key resources:
- “Highly Recommended: Year-end Close” https://www.mass.gov/info-details/highly-recommended-year-end-close Key passage: “Accounting officials have a responsibility to ensure there are no accounts with deficit balances and to deny an expenditure to an appropriation account that lacks sufficient funds.” The article stresses that by June 30, general fund accounts “should be up to date, reconciled, and not in deficit,” with proactive review required throughout the year.
- “Ask DLS: Year-End Issues” https://www.mass.gov/info-details/ask-dls-year-end-issues This article explains that §33B transfers provide greater flexibility only during a specific window (“During May and June, and the first 15 days of July of the new fiscal year…”). Important clarification: This flexibility is not an opening for deficit spending or incurring liabilities beyond appropriations. It is a limited tool to reallocate excess and unencumbered funds from one account to another (for example, to address timing issues such as snow and ice expenditures) while still operating within the statutory limits of §31.
Additional Context
- The Finance Committee has not met since July 2025.
- The budget process has started later than contemplated in the Town’s Committee Handbook (adopted September 27, 2010, available here: https://www.hardwick-ma.gov/media/1611). The Handbook states that the Finance Committee “shall consider and make recommendations on all articles of a financial nature” and that budget meetings “usually take place during the months of January and February.”
- Most other Massachusetts towns make draft budgets publicly available on their websites as they are developed. This practice is not currently followed in Hardwick.
- Signed warrants are maintained on paper only and are not discussed or approved in open public meetings.
Potential Impact on FY2027 Budget
These ongoing deficits reduce certified free cash (per DLS rules) and can create pressure for the FY2027 budget. The Town may face difficult choices between service reductions or a Proposition 2½ override to raise additional property tax revenue. An override requires placement on the ballot by the Select Board or Town Meeting and voter approval.
Correspondence and Notification
I have notified the Select Board, Finance Committee, Town Administrator, and Town Accountant regarding these accounts. This is the response I received from the Town Administrator:
| Subject: Notification of FY2026 Expenditures Exceeding Appropriations in Specific General Fund Accounts – Request for Confirmation of Corrective Action under M.G.L. c. 44, §31 |
| FROM: Jeffery Smith | Thu, Apr 16, 2026 at 8:11 AM |
| TO: Hardwick Board of Selectmen <Selectboard@hardwick-ma.gov>, Eric Vollheim, Jeffrey Schaaf, William Tinker CC: “Ryan J. Witkos” <clerk@hardwick-ma.gov>, Justine Caggiano <admin@hardwick-ma.gov>, Hardwick Accountant <accountant@hardwick-ma.gov>, Finance Committee <financecommittee@hardwick-ma.gov> | |
| Dear Select Board Members, Finance Committee Members, Town Administrator Caggiano, Town Accountant Mann, and Town Clerk Witkos: I am writing to notify you of expenditures in FY2026 (July 1, 2025 – June 30, 2026) that, according to the Town’s own VADAR Expenditure Detail Reports / Ledger History – Detail with Payables, have resulted in negative ending balances in several general fund accounts. These reports were provided to me in response to my public records requests. The following accounts show overspending as of the report dates in April 2026 (printed 4/12/2026): 001-190-5240-0002 – Municipal IT Services: Ending balance –$25,220.10 001-145-5700-0000 – Treasurer Expense: Ending balance –$9,409.79 001-210-5110-0005 – Police Training Wages: Ending balance –$9,491.31 001-151-5300-0000 – Legal: Ending balance –$7,395.44 001-146-5700-0000 – Tax Collector Expense: Ending balance –$6,382.09 001-135-5420-0000 – Accountant Expense: Ending balance –$1,488.72 Combined identified overspending across these accounts totals approximately $59,387 as reflected in the posted transactions. Under M.G.L. c. 44, §31, no department financed by municipal revenue shall incur a liability in excess of the appropriation made for that department (each item voted by Town Meeting considered a separate appropriation), except in narrowly defined emergency circumstances. I have attached the specific VADAR ledger reports showing the negative ending balances for the accounts listed above. I respectfully request written confirmation of the following: (a) Whether any transfers under M.G.L. c. 44, §33B, reserve fund transfers, or supplemental appropriations were voted and approved to cover these excesses, including the dates and amounts of such actions; or (b) The current status of these accounts and the steps being taken to bring expenditures into compliance with appropriations. I am available to discuss this at a future Select Board or Finance Committee meeting if helpful. Thank you for your attention to this matter. Respectfully, Jeffery Smith | |
| FROM: Justine Caggiano <admin@hardwick-ma.gov> | Thu, Apr 16, 2026 at 10:56 AM |
| To: Jeffery Smith, Hardwick Board of Selectmen <Selectboard@hardwick-ma.gov>, Eric Vollheim, Jeff Schaaf, William Tinker Cc: Hardwick Town Clerk <clerk@hardwick-ma.gov>, Hardwick Accountant <accountant@hardwick-ma.gov>, Mark Korzec | |
| Good Morning, I want to clarify your interpretation of M.G.L. c.44, sec, 31 in your message is not consistent with how the statute functions in municipal accounting. Section 31 does not prohibit accounts from showing temporary deficits during the fiscal year. Rather, section 31 defines the circumstances in which a municipality may incur a liability in excess of appropriation. In other words, it identifies the exceptions that allow a department to end the fiscal year in deficit, not a disallowance on temporary negative balances that occur as part of normal financial activity prior to June 30. M.G.L. c.44, sec.33B outlines the rules for addressing line item deficits at the end of the fiscal year, through transfers with Select Board and Finance Committee approval. This statute governs how municipalities clean up deficits once all expenditures for the year have been fully accounted for, meaning line items with excess funds can be reallocated to balance the affected line items. Consistent with both the statute and standard municipal practice, no transfers are considered or voted until year end. Therefore, no FY2026 transfers have been taken up at this time, nor would they be expected to be. As we approach the close of the fiscal year, we will review all departmental line items and make any necessary recommendations under sec.33B in accordance with law. Sincerely, Justine Justine Caggiano, MPA, MCPPO Town Administrator Town of Hardwick 307 Main Street, P.O. Box 575 Gilbertville, MA 01031 413-477-6197 X101 jcaggiano@hardwick-ma.gov | |
| FROM: Jeffery Smith | Thu, Apr 16, 2026 at 11:33 AM |
| TO: Justine Caggiano <admin@hardwick-ma.gov> CC: Hardwick Board of Selectmen <Selectboard@hardwick-ma.gov>, Eric Vollheim, Jeff Schaaf, William Tinker, Hardwick Town Clerk <clerk@hardwick-ma.gov>, Hardwick Accountant <accountant@hardwick-ma.gov>, Mark Korzec, Finance Committee <financecommittee@hardwick-ma.gov> | |
| Dear Town Administrator Caggiano, Thank you for your email and for taking the time to clarify the Town’s interpretation and practice regarding M.G.L. c. 44, §31 and the timing of transfers under §33B. I respectfully disagree with the interpretation that §31 permits departments to incur liabilities once an appropriation is exhausted, with correction left solely to year-end transfers. The plain language of §31 states that no department “shall incur a liability in excess of the appropriation made for the use of such department, each item voted by the town meeting in towns being considered as a separate appropriation,” with only narrow exceptions for major disasters or certain final judgments. This appears to establish a legal limit on incurring obligations against each line item, rather than allowing temporary or mid-year deficits without prior authorization. The VADAR Expenditure Detail Reports (printed 4/12/2026) show the following negative ending balances in general fund accounts: 001-190-5240-0002 – Municipal IT Services: –$25,220.10 001-145-5700-0000 – Treasurer Expense: –$9,409.79 001-210-5110-0005 – Police Training Wages: –$9,491.31 001-151-5300-0000 – Legal: –$7,395.44 001-146-5700-0000 – Tax Collector Expense: –$6,382.09 001-135-5420-0000 – Accountant Expense: –$1,488.72 To ensure a complete public record, I respectfully request written confirmation of: The current status of these accounts, including any adjustments, encumbrances, or activity after the April 2026 reports; and The anticipated timeline and process for any §33B transfers or other mechanisms to address the reported negative balances as FY2026 closes. I appreciate the Town’s commitment to following municipal financial procedures under Chapter 44 and thank you for your assistance. Respectfully, Jeffery Smith | |
| FROM: Justine Caggiano <admin@hardwick-ma.gov> | Thu, Apr 16, 2026 at 11:38 AM |
| TO: Jeffery Smith Cc: Hardwick Board of Selectmen <Selectboard@hardwick-ma.gov>, Eric Vollheim <stonedance@comcast.net>, Jeff Schaaf <jschaaf@hardwick-ma.gov>, William Tinker <wtinker@hardwick-ma.gov>, Hardwick Town Clerk <clerk@hardwick-ma.gov>, Hardwick Accountant <accountant@hardwick-ma.gov>, Mark Korzec <markkorz54@gmail.com>, Finance Committee <financecommittee@hardwick-ma.gov> | |
| Hi Mr. Smith, You can absolutely disagree and take it up with DOR if you don’t like Massachusetts General Laws. Have a nice day, Justine Justine Caggiano, MPA, MCPPO Town Administrator Town of Hardwick 307 Main Street, P.O. Box 575 Gilbertville, MA 01031 413-477-6197 X101 jcaggiano@hardwick-ma.gov | |