Plymouth faces rising deficits, tough choices ahead

PLYMOUTH — Town officials are warning that Plymouth is entering a period of growing financial pressure that could force difficult decisions on taxes, services and long-term planning.

A five-year financial forecast presented to the Select Board shows projected deficits beginning as early as fiscal 2028, with larger gaps expected in the years that follow. Finance Director Lynn Barrett said the town is not facing an immediate crisis, but the long-term trajectory raises concern.

“What that says to me, just based on the submarine model, is that we have some fiscal challenges coming up in the next couple of years, but not necessarily a fiscal cliff where we'll be looking for an override,” Barrett said.

The forecast estimates a deficit of roughly $1.4 million in fiscal 2028 on a budget exceeding $300 million. Officials noted that the gap could shrink depending on final state aid figures, but larger deficits are projected in later years.

Much of the pressure comes from structural limits on revenue growth. Property taxes make up the largest share of funding, and increases are capped annually under state law. At the same time, officials said new development, which has helped drive revenue in recent years, is expected to slow as major projects near completion. That combination leaves the town with fewer options to keep pace with rising costs.

“I really think that those are the kinds of exercises that we need to start going through and not waiting until we're closer to the edge of the cliff,” said Select Board member Deborah Iaquinto.

The forecast assumes moderate increases in expenses, including salaries, benefits and operating costs. Officials said even small changes in those assumptions could significantly affect the size of future deficits.

Select Board Chair David Golden raised concerns about the town’s ability to meet financial obligations if revenue reaches its legal ceiling while costs continue to climb. He noted that even a relatively modest deficit becomes more serious when paired with the assumption that the town will already be taxing at its maximum allowable level, potentially limiting flexibility for future costs such as labor negotiations.

Under that scenario, Plymouth would be taxing at the levy limit, the highest level allowed without voter approval for an override, leaving little flexibility to respond to new expenses. Officials said that reality could force difficult decisions about service levels, efficiencies or new revenue strategies in the years ahead.

“We need to start asking some super hard questions about what services, looking at services and how we can deliver them more efficiently,” Iaquinto said.

Town leaders emphasized that no immediate cuts or tax increases are being proposed, and the fiscal 2027 budget remains balanced. Still, they acknowledged the longer-term outlook will require planning and potentially difficult choices. Barrett said the most significant concern lies several years out.

Officials plan to refine the forecast with more detailed data this summer and continue discussions with department heads, employee groups and residents as they prepare for future budget cycles.

About the South Shore Times

The South Shore Times is an independent, locally-owned digital news platform, free to readers, that covers communities south of Boston, including Marshfield. Our articles are written by South Shore reporters, not AI.

For more South Shore news, subscribe to our newsletter.