HanoverVotes – Town Meeting recommendations for (Base and Override Budget). Articles 8 and 9.

Ahead of tomorrow’s Town Meeting, here are HanoverVotes’ recommendations.

Before diving into the articles, I want to take a moment to recognize the individuals, committees, and departments who have worked on the budget process since September. Joe Colangelo (Town Manager), Jim Hoyes (Budget Director), the Advisory Committee, the Select Board, and all Town Department Heads have contributed countless hours to this effort. I’m sure there are others involved behind the scenes as well — thank you all.

This year’s budget process and election season have become deeply divisive, marked by personal attacks, online hostility, and an erosion of civil dialogue. This has created an atmosphere of mistrust and fear that threatens to overshadow the real issues at stake. If this continues, it will divide neighbors and undermine the trust we need to move forward.

Article 8 - Recommendation: Support the Town Manager’s Base Budget

Article 9 - Vote NO on the Override. 

For individuals who may want to vote on an Override Budget, you should select Advisory Override Budget

Details for Articles 8 and 9 are below

 

ARTICLE 8. GENERAL FUND BASE OPERATING BUDGET

Budget Timing & Article 8

Under the Town Manager Act, the Town Manager is required to submit a balanced proposed budget no later than 90 days before the Annual Town Meeting. 

The Advisory Committee’s budget was finalized in April, after updated forecasts and continued discussions with the Select Board, School Committee, Town Manager, Budget Director, and department heads.

Key Differences Between the Base Budgets

  • Schools: The Advisory Committee budget provides $460,000 more to the School Department than the Town Manager’s budget. This allows the schools to fill 12 of 36 requested positions, compared to 6 positions under the Town Manager's base budget.
  • An additional $520,000 in the Advisory budget is allocated to the Snow & Ice and AdCom Reserve accounts.

How is this funded?
About $1.5 million was freed up by moving the Transfer Station to an enterprise fund, and another $1.6 million is being pulled from Free Cash.

If all Advisory recommendations are followed, only about $600,000 in Free Cash will remain for next year, down from $3.3 million certified this year.

Concerns with the Base Budget

Adding 6 or 12 school positions to the base budget at this stage creates risk. It puts residents in conflict, pitting supporters of the schools against those advocating for the Seniors, Library, Council on Aging, and other services. Both budgets have been submitted and cannot be changed unless residents vote to amend them at Town Meeting.

In uncertain times, increasing recurring expenses and depleting Free Cash are risky. Teacher salaries increase ~3% per year due to contracts, not including benefits. Using Free Cash for permanent salary costs weakens the town’s financial flexibility in case of future revenue loss or economic downturn.

HanoverVotes recommends supporting the Town Manager’s Base Budget.

 

ARTICLE 9. GENERAL FUND OVERRIDE OPERATING BUDGET

 

Town Manager’s Override Budget vs. Advisory Committee’s Override Budget

Town Manager’s Override Budget

  • Proposes restoring 30 school positions lost in the previous year.
  • Fund the Police and DPW budgets at requested levels.
  • Does not include built-in excess levy capacity, meaning the budget taxes up to the new levy limit.
  • Risks:
    • Creates a recurring budget gap beginning in FY27.
    • Could lead to layoffs and the need for another override within a few years.

Advisory Committee’s Override Budget

  • Cuts $500,000 from the Town Manager’s proposed department budgets to build $750,000 in excess levy capacity (including $250K from Select Board adjustment).
  • Includes strategic cuts to spread reductions across departments:
    • $300,000 cut from School Department – still allows hiring of 24 out of 36 lost positions.
    • $120,000 cut from Fire Department – equals cost of 1 firefighter, with hopes of SAFER grant funding.
    • $40,000 cut from DPW – acknowledged need, but reduced to create levy capacity.
    • $25,000 cut from Finance – based on new post-budget information.
    • $15,000 cut from Police – no new officers since 1995, but cut made for long-term sustainability.
  • Use $780,000 in free cash to reduce the override tax impact to $387 per average home.
  • Leaves about $1.3 million in free cash for next year, down from $3.3 million this year.

Why the Cuts?

  • Without excess levy capacity, FY27 and beyond will mirror today’s budget strain.
  • Proposition 2½ limits levy increases to ~3% annually, most of which is needed for non-departmental costs (like insurance and retirement).
  • Cuts now help avoid deeper, more disruptive cuts or layoffs later.

Risks of Ignoring Advisory Cuts

  • Restoring any department funding without cutting elsewhere:
    • Uses up excess levy capacity faster.
    • Increases the likelihood of layoffs in the next few years.
    • Reduces available free cash, making future budgets harder to balance.

Bottom Line

  • The Advisory budget is a long-term sustainability plan.
  • Shared sacrifice now avoids emergency cuts later.
  • The path to avoiding future overrides and layoffs runs through tight fiscal discipline in FY26.

Article 9 - Vote NO on the Override. 

For individuals who may want to vote on an Override Budget, you should select Advisory Override Budget