This page will be updated as new information becomes available.
Overview
I am a Hardwick resident and taxpayer. This page documents my investigation into spending that has exceeded appropriations in multiple Town of Hardwick general fund accounts during Fiscal Year 2026 (July 1, 2025 – June 30, 2026).
The data below is drawn entirely from the Town’s own VADAR financial reporting system, obtained through formal public records requests. All source documents are linked for download at the bottom of this page.
The core concern is straightforward: Massachusetts General Law Chapter 44, §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.” Multiple Hardwick accounts have not only reached zero — they have continued incurring expenditures well beyond their Town Meeting-approved limits, in some cases from the very first month of the fiscal year.
The Law
M.G.L. c. 44, §31 prohibits municipal departments from incurring liabilities beyond their appropriations. The only statutory exceptions are for major natural disasters or certain court-ordered final judgments. Mid-year deficit spending is not among the exceptions.
The Town Administrator has stated that the Town intends to address negative balances at year-end through transfers under M.G.L. c. 44, §33B. While §33B transfers are a legitimate tool for year-end cleanup, the question of whether the incurring of liabilities against an exhausted appropriation mid-year itself violates §31 is the central legal dispute. That question has been referred to the Massachusetts Division of Local Services (DLS) for a formal opinion by a sitting member of the Hardwick Select Board who shares these concerns.
Six Accounts in Deficit: VADAR Detail Reports (Printed April 12, 2026)
The following accounts show negative ending balances as of the report date. These figures come directly from the Town’s VADAR Expenditure Ledger.
1. Municipal IT Services — –$25,220.10
Account: 001-190-5240-0002 | Appropriation: $38,000 | Total Spent: $77,127.33 (203% of budget)
This is the most severely overspent account. Spending exceeded the appropriation by double. A significant driver was a $13,124.40 payment to Liftoff LLC on February 19, 2026 — an annual Microsoft 365 software licensing renewal for the period March 2026 through March 2027. This is a forward-looking contract commitment for services extending well beyond FY2026, charged entirely against a line item that was already $8,842.80 in deficit at the time of payment. Charging a full year of future licensing costs to an exhausted single-year appropriation raises serious questions about budget management and compliance.
The account also shows recurring monthly payments to CM Geeks Inc. (IT services), Northern Business Machines (printer maintenance), and contractor Julie Murkette (website management) continuing well after the account had gone into deficit.
2. Police Training Wages — –$9,491.31
Account: 001-210-5110-0005 | Appropriation: $2,014 | Total Spent: $11,505.31 (571% of budget)
This account is perhaps the most legally significant because it went into deficit on the very first payroll of the fiscal year — July 31, 2025 — with a charge of $272.96 against an appropriation of $2,014. By the second payroll on August 14, it had accumulated $372.96 in charges. It was never in compliance.
This directly challenges the argument that negative balances represent temporary mid-year fluctuations. An account that begins the year in deficit, and remains in deficit continuously, cannot be characterized as a cash-flow timing issue.
Notable: In late March 2026, three invoices totaling $1,439 were reclassified out of this account into other accounts — reducing the deficit somewhat. But the account remained nearly $9,500 in the red through the final payroll on April 9, 2026.
3. Treasurer Expense — –$9,409.79
Account: 001-145-5700-0000 | Appropriation: $7,000 | Total Spent: $16,409.79 (234% of budget)
This account went negative in November 2025 — roughly one-third of the way through the fiscal year — and continued accumulating expenditures. Recurring charges include payments to Mass MuniFin (financial consulting), Louison Costello Condon & Pfaff LLP (legal services billed to the Treasurer), and contractor Nicholas George. The account was $2,016 in deficit by December 2025 and continued spending through at least March 2026.
4. Legal — –$7,395.44
Account: 001-151-5300-0000 | Appropriation: $50,000 | Total Spent: $57,395.44 (115% of budget)
The Legal account’s primary vendor is KP Law P.C., which billed the Town $57,395 across the fiscal year — exceeding the entire appropriation. The account went negative in December 2025 following a $5,790 payment to “Discrimination and Harassment” services (invoice #635), suggesting active litigation or HR proceedings that were not anticipated in the budget. Charges continued through April 2, 2026, the most recent warrant period in the report.
5. Tax Collector Expense — –$6,382.09
Account: 001-146-5700-0000 | Appropriation: $24,982.50 (including a $6,982.50 FY25 encumbrance) | Total Spent: $31,364.59 (126% of budget)
This account had a carryover encumbrance from FY25 of $6,982.50, which was paid out in the first weeks of the fiscal year to Mass MuniFin. The encumbrance consumed the bulk of available funds before routine FY26 spending had barely begun, and the account went into deficit by the end of September 2025 — less than three months into the year.
6. Accountant Expense — –$1,488.72
Account: 001-135-5420-0000 | Appropriation: $2,000 | Total Spent: $3,488.72 (174% of budget)
The Accountant Expense account went negative in November 2025 following a $1,495.72 charge to Dell Marketing L.P. The account continued accumulating charges through February 2026, including $775 to Harper’s Payroll Services for 1099 processing.
The Broader Picture: Additional Accounts in Deficit
The six accounts above are documented in VADAR detail reports. However, the Town’s own February 2026 Allocated Summary Report — covering July 1, 2025 through February 28, 2026 — reveals additional accounts in deficit that have not yet been addressed publicly:
| Account | Description | Deficit as of 2/28/2026 |
|---|---|---|
| 001-423-5110 | Snow & Ice Wages | –$20,990.31 (274% spent) |
| 001-423-5700 | Snow & Ice Expense | –$96,882.30 (229% spent) |
| 001-751-5915 | Interest | –$13,643.28 (130% spent) |
| 001-145-5300 | Treasurer Payroll Expense | –$98.04 |
| 001-945-5740 | Workers Compensation Insurance | –$991.00 |
| 001-210-5500 | Police Fair Details | –$66.16 |
| 001-192-5700 | Town House Expense | –$42.89 |
Note on Snow & Ice: Massachusetts law (M.G.L. c. 44, §31D) provides a specific exception for snow and ice removal, recognizing that costs cannot be predicted in advance. The snow and ice deficits are expected and are likely not a §31 issue. They are listed here for completeness.
The Interest account deficit is more difficult to explain. Debt service obligations are known in advance when a budget is set. An interest appropriation that is 30% overspent eight months into the fiscal year warrants an explanation.
The Workers Compensation deficit represents another known, recurring obligation that should be fully funded at the outset of the year.
The Finance Committee
The Finance Committee is charged with oversight of town finances and reviewing the budget throughout the year. Based on available public meeting records, the Finance Committee has not held a regular meeting since July 2025 — nearly the entire fiscal year. During a year in which multiple accounts have gone significantly into deficit, this absence of oversight is itself a serious concern that residents deserve to have addressed.
The Town’s Response
After reviewing the VADAR reports and notifying the Select Board, Finance Committee, Town Administrator, Town Accountant, and Town Clerk in writing, I received the following responses from Town Administrator Justine Caggiano:
First response (April 16, 2026):
The Town Administrator acknowledged the negative balances but stated that mid-year transfers are not expected, and that the Town plans to address all deficits at year-end through §33B transfers “in accordance with law.” She characterized the negative balances as a normal part of municipal cash-flow management.
Second response (April 16, 2026), after I respectfully disagreed:
“You can absolutely disagree and take it up with DOR if you don’t like Massachusetts General Laws. Have a nice day.”
Third response (April 16, 2026):
The Town Administrator suggested I contact DLS staff-of-the-day for clarification — a resource that is available to local officials, not members of the public — and stated she considered the matter closed.
The dismissive tone of these responses to a legitimate, documented public concern speaks for itself.
What Happens Next
The fiscal year closes June 30, 2026. If the Town intends to use §33B transfers to zero out these accounts, that process must occur through public Select Board meetings in May and June 2026. Residents should watch for those agenda items and attend.
A formal inquiry to the Massachusetts Division of Local Services is underway, initiated by a sitting member of the Hardwick Select Board who shares the concerns documented on this page. This page will be updated when a response is received.
I have accepted the Town Administrator’s suggestion to pursue this with the Department of Revenue / Division of Local Services, and am doing so.
Source Documents
All documents below were obtained through formal public records requests to the Town of Hardwick.
VADAR Expenditure Detail Reports (printed April 12, 2026):
- 001-135-5420-0000 Accountant Expense
- 001-145-5700-0000 Treasurer Expense
- 001-146-5700-0000 Tax Collector Expense
- 001-151-5300-0000 Legal
- 001-190-5240-0002 Municipal IT Services
- 001-210-5110-0005 Police Training Wages
Supporting Documents:
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).
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 | |