By James Hoyes and Rachel Hughes, Members of the Hanover Select Board and former members of the Hanover Advisory Committee
We don't always see eye to eye on local issues. In fact, our political perspectives often differ significantly. But we share a commitment to Hanover and a belief that sound financial stewardship must transcend politics. Between us, we bring years of experience on the Select Board, Advisory Committee, School Committee, and in Town Hall's Finance Department. We've seen firsthand how financial decisions ripple across our schools, public safety departments, municipal services, and taxpayers. That experience has reinforced a shared conviction: responsible leadership means confronting financial challenges today, not continually passing them along to the next board or the next generation of taxpayers.
For too long, the temptation in local government has been to defer difficult financial decisions to another budget cycle. It's often easier to maintain the status quo than to make choices that involve risk, trade-offs, or uncomfortable conversations. But postponing known obligations doesn't make them disappear. It simply limits the options available to those who come after us. We believe Hanover has an opportunity to take a different approach.
That is why we strongly support Hanover's proposal to use a measured portion of its General Stabilization Fund to prepay part of the town's unfunded pension liability through the Plymouth County Retirement Association (PCRA). Rather than continuing to carry the full obligation into future budget years, this proposal would put available resources to work now to reduce future pension assessments and create much-needed operating budget flexibility.
Based on projections we have reviewed, this proposal could reduce Hanover's pension assessments by approximately $2.6 million between FY30 and FY32, with annual reductions of roughly $771,000, $851,000, and $975,000, respectively. But the greater benefit is what those savings could mean for residents. During three particularly challenging fiscal years, this relief would preserve more of Hanover's existing revenue capacity under Proposition 2½ for schools, public safety, and essential municipal services. The proposal itself requires no new tax override and could help avoid or delay the need for future overrides. That is meaningful relief for both our operating budget and taxpayers.
Of course, using reserves responsibly means having a clear plan to replenish them. And we do. Under the town's current pension funding schedule, the PCRA unfunded liability is projected to be fully funded by FY32, eight years ahead of the statutory deadline. Beginning in FY33, Hanover anticipates approximately $10 million in pension-related budget relief, creating substantial financial capacity to restore the General Stabilization Fund. Combined with our existing policy of directing $200,000 annually in Meals Tax revenue toward stabilization and the potential allocation of future Free Cash, this provides a practical path to rebuilding reserves in accordance with the town's financial policies.
The strategy is straightforward: use a measured portion of our reserves to provide meaningful budget relief during three challenging fiscal years, then take advantage of the significant financial capacity opening up in FY33 to replenish those reserves. Rather than allowing financial pressures to compound, we have an opportunity to plan ahead and manage them deliberately.
Hanover also maintains a separate Capital Stabilization Fund to address major infrastructure needs and certain capital emergencies. While this is not a substitute for maintaining adequate general reserves, it provides another layer of financial protection.
This proposal is not an isolated decision. It is one component of a broader, interconnected financial strategy that includes managing excess levy capacity, evaluating our debt obligations and payment schedules, making thoughtful use of Free Cash, determining how Meals Tax revenue supports operating needs and the OPEB Trust, and addressing our remaining unfunded retiree benefit obligations. These decisions affect one another and must be considered together, with an eye toward where Hanover needs to be five, ten, and twenty years from now.
We recognize that maintaining strong reserves is essential and that this proposal involves legitimate trade-offs. But there is an important difference between spending reserves to sustain ongoing expenses and strategically using a portion of those reserves to reduce a known future obligation. The latter deserves serious consideration, supported by careful financial analysis, appropriate safeguards, and a credible plan for replenishment.
There will never be a perfect moment to make difficult financial decisions. There will always be competing priorities, economic uncertainty, and reasons to wait. But waiting is itself a decision, and one that can carry significant consequences. We cannot continue to measure responsible financial management solely by how comfortably we navigate the current budget year. We must also consider the financial challenges we leave behind.
Neither of us believes this proposal will solve every financial challenge Hanover faces. But we do believe it represents the kind of proactive, long-term thinking our community needs. Our responsibility as elected officials is not simply to preserve the status quo or pass difficult decisions to our successors. It is to examine the options before us, weigh the risks and benefits, and act when we believe doing so will strengthen Hanover's future.
We encourage Hanover residents to attend the Special Town Meeting on November 9, 2026, participate in the discussion, and support the warrant articles, including the proposed PCRA pension liability prepayment. These decisions will have lasting implications for our community and deserve informed public participation.
We come from different political perspectives, but we share a common vision for Hanover's future and a commitment to making the difficult decisions necessary to protect it. We cannot keep kicking the can down the road. Responsible leadership means having the willingness to make thoughtful decisions today, so future boards, residents, and taxpayers inherit a stronger financial foundation tomorrow. That's common ground worth building on.