Hanover Faces Steep Budget Cuts Amid Financial Constraints

Town Manager Proposes Significant Service Reductions to Meet Proposition 2 1/2 Limits

HANOVER, MA - November 4 - Hanover residents may soon see reduced town services and facility closures as officials grapple with financial constraints under Proposition 2 1/2. Town Manager Joe Colangelo presented a stark budget proposal to the Select Board Monday night, outlining cuts across multiple departments to balance the fiscal year 2026 budget.

"This budget proposal significantly reduces service levels, but avoids eliminating entire services," Colangelo said. "There are no easy choices, and there are no good choices."

The proposed cuts would impact public safety, town operations, and community services. The Hanover Police Department faces the elimination of all civilian clerk positions, potentially leaving the station closed and unstaffed for 16 hours daily.

Colangelo warned that further reductions at the Fire Department would bring shift strength down from six to five firefighters more than 50% of the time, impacting emergency response capabilities.

Town Hall and the Council on Aging building would close on Fridays year-round under the proposal. The library faces potential Saturday closures starting January 2026, jeopardizing its certification.

Colangelo emphasized that service reductions mean staff cuts. "The services that we provide as a town, whether it's plowing roads or responding to fire calls or teaching third grade, are provided by people," he said.

The budget constraints stem from the limitations of Proposition 2 1/2, which caps annual property tax increases at 2 1/2% plus new growth. Colangelo noted that previous reliance on free cash to offset operating costs is no longer sustainable.

"We're eliminating that $1.7 million of free cash to offset the operating budget," he explained. "That's basically gobbling up our entire increase that we receive in revenue from property taxes under the limit."

To mitigate some cuts, Colangelo proposed moving the transfer station to an enterprise fund and asking voters to exclude some existing debt from the levy limit. These measures could free up approximately $2.1 million for other services.

The proposal aims to provide a "pathway" for level-funding Hanover Public Schools, avoiding further cuts beyond the 37 staff positions eliminated last year. However, this would require applying free cash and potentially using stabilization funds, which Colangelo cautioned is "not sustainable" long-term.

School Committee member Elizabeth Corbo petitioned the Select Board to consider a special election for an override vote before April 1. She argued this would provide budget certainty before the annual town meeting and help avoid teacher layoff notices.

"We're really hoping that we do not have to issue pink slips this year," Corbo said. "Having the vote before April 1 would allow us to hold off on doing that."

Select Board members expressed reluctance to schedule a special election, citing concerns about process and the recent failure of an override vote in May.

"I don't necessarily agree that it is a risk worth taking, given how much I think a no vote or a yes vote, as it impacts other things that we need to vote on in May," said Select Board Chair Vanessa O'Connor.

The board took no immediate action on the school committee's request, agreeing to consider it further at future meetings.

As discussions continue, residents face the prospect of diminished town services unless alternative funding sources are identified or voters approve an override of Proposition 2 1/2 limits.

The Select Board will continue budget deliberations in the coming months, with a formal budget submission due from the town manager on Feb. 3.