A severe budget crisis is gripping Hanover, threatening vital town services and forcing officials to contemplate significant cuts to public safety and education. As the town prepares for the next fiscal year, officials warn that hard decisions lie ahead.
The town’s financial challenges stem largely from inflation, rising operational costs, and the constraints of Proposition 2½, which limits property tax increases to 2.5% annually unless overridden by voters. Town Manager Joseph Colangelo outlined the stark reality at a recent Select Board meeting, stating, “This budget proposal significantly reduces service levels, but avoids eliminating entire services. There are no easy choices, and there are no good choices.”
Rising healthcare premiums, electricity costs, and vehicle expenses have compounded the financial strain. Colangelo emphasized the structural challenges posed by Proposition 2½: “Voters can mitigate property tax increases and drastically reduce services to keep spending within the constraints... or increase property taxes and fees beyond the limitations.”
In May, Hanover voters rejected a proposed Proposition 2½ override, a measure that would have allowed the town to raise property taxes beyond the statutory cap to fund essential services. The failure of the override led to significant financial strain, forcing cuts across departments, including the elimination of 37 school staff positions. Despite warnings from town officials about the impact on public safety, education, and other critical services, the override faced opposition from residents concerned about the increased tax burden.
Hanover’s budget crisis has been exacerbated by a long-standing reliance on one-time revenue sources, such as free cash, to cover recurring operating expenses. In previous years, the town used $1.7 million in free cash annually to balance the budget and fund essential services, a practice that created a structural deficit. While this approach temporarily masked financial imbalances, it failed to address the increasing costs of public safety, education, and other vital services. As a result, Hanover’s reliance on these non-recurring funds has become unsustainable, leaving the town unable to meet its financial obligations without significant cuts or new revenue sources.
Town Manager Joseph Colangelo emphasized the need for a more sustainable approach, warning, “We’re eliminating that $1.7 million of free cash to offset the operating budget… that’s basically gobbling up our entire increase that we receive in revenue from property taxes under the limit.”
That fiscal strategy, combined with rising costs and the constraints of Proposition 2½, has pushed Hanover into a precarious financial position, forcing difficult decisions about service levels and funding priorities.
The Hanover Fire and Police Departments face potential staffing reductions that could jeopardize public safety, according to town officials.
Fire Chief Jason Cavallaro warned that his department, already operating with reduced staffing 28% of the time, may need to eliminate a full-time position and further decrease shift coverage. “We would see a huge decline in our ability to deliver service,” Cavallaro said. “93% of our budget is salary-based. There’s only one place to take it.”
Police Chief Timothy Kane echoed these concerns, noting that his department has already reassigned officers from specialized roles to patrol duties and eliminated a records clerk. The department’s mall officer program at Hanover Crossing is also at risk, partly due to changes in reserve officer requirements and budget limitations.
“I’ve never seen us operate so thin,” Kane said. “I’m literally [monitoring overtime] every single day.” Kane emphasized that further cuts could compromise the department’s ability to maintain community policing initiatives and respond effectively to emergencies.
Superintendent Matthew Ferron and Director of Finance Michael Oates outlined a grim outlook, warning that the district could face a $1.75 million shortfall in the upcoming fiscal year if no additional funding is secured. This gap comes after $2.7 million in cuts were made this year following the override failure, which resulted in the loss of 37 staff positions.
Ferron explained, “The unknown creates anxiety, fear, and uncertainty,” as the district tries to plan for what could be another year of severe cuts.
The potential consequences are far-reaching. At the elementary and middle school levels, the district may need to reduce eight to ten classroom teachers, leading to larger class sizes of 27 to 29 students at the elementary level and 27 to 32 students at the middle school level. The elimination of specialist subjects like art, music, and information technology is also under consideration, which could shorten the school day and reduce hours for support staff.
High school students face similar challenges, with cuts to elective courses, Advanced Placement (AP) offerings, and classroom teachers all on the table. These measures threaten to erode the quality of education and limit opportunities for students to excel academically.
The district is also considering eliminating non-mandatory bus transportation, which could save an estimated $500,000. However, this move raises significant safety concerns due to increased traffic congestion near schools as more parents drive their children.
“We cannot add cars to those streets. There are safety concerns around that,” Oates cautioned.
In the face of these challenges, the district is exploring creative solutions to increase funding. One promising initiative is the implementation of free full-day kindergarten, which could boost state Chapter 70 funding by increasing the district’s student count for aid calculations. Currently, half-day and tuition-based full-day kindergarten students are counted as half-students for state funding purposes. Ferron noted that while this measure would require an initial investment, it could become self-sustaining in subsequent years.
“We’re looking at options of maybe using some stabilization fund money or some other opportunity to finally fund full-day kindergarten for a year with the understanding that it will pay for itself every year going forward,” Ferron said.
Officials have stated that are searching for ways to address the crisis. At recent meetings, suggestions ranged from introducing fees for waste disposal to revisiting the town’s split tax rate. Select Board member Rhonda Nyman underscored the importance of maintaining public safety, saying, “I want nothing less than to give the departments in this town the resources that they need to do the job that they’ve been given and asked to do.”
Despite the challenges, town leaders are committed to finding solutions. A series of budget discussions and public forums are scheduled, culminating in a town meeting where the final budget will be debated.
As Colangelo noted, “There are no easy choices... but we must ensure we’re making informed ones.”