Hanover Town Hall Superimposed over a negative balance sheet.
Rising costs and the constraints of Proposition 2½, has pushed Hanover into a precarious financial position

Hanover Officials Outline Two Paths: Override or Deep Cuts

Town officials outlined budget two scenarios for next fiscal year: Severe service reductions or a tax override to maintain town services
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Hanover officials presented two stark budget scenarios for fiscal year 2026 at last week's Select Board meeting, laying groundwork for either a tax override vote or significant service reductions across town departments.

The base budget, which stays within tax levy limits, would force staffing cuts in multiple departments. The police department would reduce civilian staff from five to two positions, limiting front desk hours. The library could lose its state certification and eliminate assistant positions. Fire department staffing would remain below 2024 levels unless a federal grant is secured.

"We've cut down to the very marrow," Town Manager Joseph Colangelo told the Select Board, describing the impact of previous reductions. He noted that when key staff leave now, "the results are fairly devastating in terms of our ability to continue a work product and keep delivering services."

The override budget would restore most departments to 2024 service levels and includes a larger increase for schools. While the base budget provides a $1.4 million increase for schools, the override scenario proposes $3.5 million. Specific details about school impacts are expected at an upcoming joint meeting with the School Committee.

Advisory Committee Member James Hoyes warned that staying within tax levy limits isn't sustainable. "Two and a half percent increases are not going to cut it against that number," he said, noting that personnel costs comprise over 90% of the total town budget.

The financial pressure is compounded by declining revenue growth. "New growth in town is really dropping prior to about a six year building boom where new growth was anywhere from $600,000 to $800,000," Hoyes reported. He added it's "now dropping back to historical levels of about $300,000."

Under the override scenario, officials aim to keep the tax impact below $1,000 for the average household - less than last year's failed override attempt.

The town expects to present final budgets, including detailed line items, by February 3rd, after which voters will decide whether to approve an override or accept reduced services.

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