10/30/2026
The Town of Reading is sharing a frequently asked question each day to help residents better understand the proposed FY28 override.
Today, the question is: "What is a structural deficit?”
A structural deficit occurs when a town’s recurring expenses consistently exceed its recurring revenues. In Reading, costs such as health insurance, pensions, utilities, and waste disposal are growing faster than revenue. Proposition 2½ constrains property tax revenue growth, while state aid has not kept pace with inflation, placing greater pressure on local taxpayers.
Reading’s projected FY28 structural deficit is approximately $9.8 million. The proposed $6.5 million override, paired with $3 million in free cash reserves, would cover most of that gap; the remaining approximately $300,000 would still need to be addressed to balance the budget.
Follow along for more FAQs and helpful information leading up to Election Day. Please send your questions to [email protected].
To see the full list of frequently asked questions for the override, visit: https://www.readingma.gov/Faq.aspx?TID=63.