Hingham officials presented a preliminary fiscal year 2026 budget forecast showing a deficit of nearly $950,000, while noting the town has stabilization funds available to address potential shortfalls.
The forecast, presented to the Select Board, projects total sources of about $167 million, with property taxes remaining the primary revenue source. The deficit currently stands at $948,000, though officials expect this number could change as more information becomes available.
"We did set aside money in the tax mitigation stabilization fund to close budget gaps this year, next year," explained Assistant Town Administrator Michelle Monsegur. "We have 3.5 million in that tax mitigation stabilization fund...to help us live through these next few years."
The forecast includes a 3.5% growth assumption for both school and municipal budgets, along with estimated increases in shared services like health insurance. "Health insurance rates typically come out in early March and that's when we do a big analysis to tweak that budget," Monsegur noted.
Town Administrator Tom Mayo emphasized that the 3.5% growth projection for Article 6 represents a ceiling rather than a target. "That won't change. There's a lot of work to do in the background, but by the time we have a final forecast that 3.5% increase is going to be the same or less," Mayo said. "Don't expect it to be much less, but it won't be higher than that."
Officials expect to release updated forecasts as new information becomes available, particularly after the Massachusetts Municipal Association conference in late January and when motor vehicle excise tax data is released. The town anticipates receiving health insurance rate information in early March, which will allow for further budget refinements.
The preliminary forecast suggests larger deficits in future years, particularly starting in fiscal year 2027, though officials noted the tax mitigation stabilization fund was established specifically to help address such gaps over multiple years.