Town officials painted a sobering picture of Hanover's fiscal challenges during a joint Select Board and School Committee meeting Tuesday, highlighting how inflation and rising costs have driven the municipal budget up by what they say is 37% since 2016 while officials struggle to maintain services.
Select Board member John Tuzik noted the town's budget has grown from $54 million in 2016 to approximately $75 million today – a $20 million increase in nine years that reflects broader economic pressures facing municipalities.
"Municipal government doesn't operate in vacuum. Costs go up for everything including municipal government costs," Tuzik said, citing inflation data showing cumulative price increases of 31% over nine years. "Food's up 36%, housing 42%, transportation 44%. We're feeling that in the schools, medical expenses are up 25%."
The South Shore Times examined Hanover's municipal finance data from FY2013 and FY2023, the most recent available in the Massachusetts Division of Local Services database, and found that key spending areas have experienced significant growth over the decade. The Fire Department and Police Department saw the highest average yearly growth rates, at 4.90% and 4.89%, respectively. Education, the largest expenditure category, grew by an average of 4.74% per year. Other areas, such as intergovernmental assessments and public works, also saw steady annual increases of 3.82% and 3.77%. Overall, Hanover's total expenditures increased by 42.07% during this period
The mounting costs come as residents face additional financial burdens. The town is implementing new transfer station fees, which some residents say could cost up to $600 annually for households needing multiple vehicle stickers.
"It's a lot to swallow," said Edward Henderson, a Hanover resident who spoke at the meeting. "If you have two vehicles, your wife works at night or you work during the day, so she has to have a vehicle to take the trash. That's $600 per household for two stickers because you can't swap it with registrations."
Officials are considering a municipal override that would increase property taxes to help fund town services, particularly schools. However, the amount remains hotly debated, with concerns about taxpayer burden competing against service needs.
"I get it a hundred percent, but can we collectively work together, the school and the townside, to come up with a better number than a thousand dollars for an override and then $300 or $600 extra for every other thing that's added to the residents," Henderson asked the boards.
The discussion highlighted the constraints of Proposition 2½, which limits annual property tax increases to 2.5% without voter approval, even as inflation has recently run much higher.
"We're working on a two and a half percent artificial... somebody at one point, well before I was involved said two and a half percent was the maximum that we can increase the taxes," Tuzik explained. "Probably a wise decision in 1970 something, but now we're trying to run a government while inflation is at 3% and it's been as high as 8% in the last four years."
Some officials argued the budget increases should be viewed in context of rising property values and incomes. Resident Brian May noted that average home values in Hanover have increased from $410,000 in 2015 to $775,000 today, while average household incomes rose from $105,000 to $185,000 – both representing roughly 80% increases.
"When you pay 30% and you get 80% in almost any circumstance, that is an excellent outcome," May said, suggesting officials need to better communicate "the relative value that's being produced for taxpayers in this community."
The South Shore Times also examined available state data on property tax bills as both a percentage of property values and as a percentage of residents' average income, as reported by the Department of Revenue. From 2021 to 2025, the average single-family tax bill in Hanover increased modestly, rising from $8,880 to $9,602, an average annual growth rate of 1.62%. While this reflects a slight upward trend, it is relatively moderate compared to many other municipalities. Notably, despite this incremental rise, local taxes as a percentage of residents' average income decreased significantly, dropping from 16.04% in 2021 to 12.97% in 2025. Additionally, Hanover's Average Single Family Tax Bill as a percentage of Average Single Family Assessed Value also declined during this period, falling from 1.63% to 1.24%.
Select Board Chair Vanessa O'Connor acknowledged the competing pressures facing the town, noting that increasing commercial development to expand the tax base often faces resistance, while residents simultaneously oppose both service cuts and tax increases.
"There's really no way to win," O'Connor said. "Essentially, we're all fighting somewhat of a losing battle or to try and keep us above board and sustain things."
The boards will continue budget discussions at their next meeting on January 21, as they work to finalize override proposals and spending plans for the coming fiscal year.