South Shore News...letter: When New Growth Runs Out

South Shore Confronts Revenue Reality

Week of January 20-29, 2026

The past week revealed a deepening paradox across the South Shore: communities that recently passed tax overrides to stabilize their budgets are already confronting new deficits, while those that rejected overrides face even more dire fiscal straits. From Norwell’s $334,000 school budget gap to Cohasset’s projected $2.4 million deficit to Plymouth’s looming “fiscal cliff,” the region is discovering that Proposition 2½ limitations have created structural problems that single overrides cannot solve. Even as towns scramble for alternative revenue—selling properties, raising occupancy taxes, outsourcing services—the underlying mathematics remain unforgiving: healthcare costs are rising at 14%, utility contracts are spiking 12%, and new growth revenue that propped up budgets for decades is evaporating.

Meanwhile, the state-local power struggle over housing policy erupted into the courtroom this week as Attorney General Andrea Joy Campbell sued nine communities, including East Bridgewater and Halifax, for refusing to comply with MBTA Communities zoning mandates. The legal action, five years after the law’s passage, underscores the collision between state housing policy and municipal resistance—a tension likely to escalate as communities weigh court orders against voter sentiment.

The Override Paradox: Budget Crises Return Despite Recent Tax Increases

Norwell’s fiscal reality exemplifies the region’s override paradox. Superintendent Matt Keegan presented a $34.7 million “level service” budget representing a 4% increase, warning that the district remains “fragile” after losing 12.6 teaching positions following last year’s failed override. Despite trimming $160,000 from initial requests, a joint meeting with the Select Board revealed a $334,000 gap between school needs and projected town revenue. The district is falling behind on its technology replacement cycle after cutting $155,901 last year—a “hiccup” that now threatens state MCAS testing compliance as teacher laptops age out. Full restoration of the nine teachers, building-based aides, and technology would cost approximately $1.5 million on top of current requests, nearly identical to the override amount voters rejected.

Cohasset faces an even starker crisis with a projected $2.4 million FY27 deficit driven by a 14% spike in healthcare costs and a $670,000 decline in new growth revenue. Interim Town Manager Michelle Leary’s “level service” budget requires a 6% increase for both town and school sides just to maintain current operations, creating a $1.1 million town deficit and $1.3 million school deficit. To close the gap, officials are exploring health insurance plan design changes introducing deductibles of $250 for individuals and $750 for families—a move that could save over $400,000 annually if unions agree. The town is also feeling pressure from a 38% increase in South Shore Vocational Technical School costs due to higher enrollment and a $100,000 assessment increase for the regional emergency dispatch center.

Abington’s response to fiscal pressure was equally telling: Police Chief John Bonney voluntarily withdrew a warrant article requesting four new officers, explaining, “We need this override to keep the people that we have currently. We wanted four extra bodies—now is not the time to ask for wants, and we recognize that.” The Board’s decision to focus on “needs-only” spending as they prepare an override question signals a regional shift toward preservation rather than expansion of municipal services.

The Revenue Crisis: New Growth Collapses and Towns Scramble for Alternatives

Plymouth officials delivered perhaps the starkest warning of the week, cautioning that the town faces a “fiscal cliff” as major residential developments reach build-out. Planning Board Chair Steven Bolotin revealed that 45% of Plymouth’s annual new growth revenue comes from just two developments—Pine Hills and Redbrook. As these projects near completion, that revenue stream will stop, and Plymouth would need the equivalent of two new “Colony Place” developments every year to replace the lost growth. With residential taxes accounting for 86% of the town’s revenue—well above the 83% state average—and only 380 acres of developable commercial/industrial land (none shovel-ready), Plymouth faces a fundamental tax base problem that no single policy can quickly resolve.

Hingham took aggressive action to diversify revenue sources, advancing warrant articles to sell several town-owned properties including the Lincoln School Apartments, the former DPW barn at 8 Short Street, and the vacated North Fire Station. The Board also “resurrected” a Real Estate Transfer Fee proposal first floated in 2022, which would apply to property sales (likely exempting those under $700,000) and generate non-tax revenue for affordable housing and general government needs. Most significantly, the Board authorized a one-year $1.35 million subsidy from unassigned fund balance to combat “crippling” health care cost increases, temporarily moving the town from a 50/50 to 60/40 cost-share with employees. Town Administrator Tom Mayo noted that at 50/50, “Hingham is funding health care at the lowest amount allowed by law.”

Scituate pursued multiple creative revenue strategies, voting to increase the local room occupancy tax from 4% to 6% effective January 1, 2027, and implementing new 3% community impact fees on short-term rentals (with at least 35% dedicated to affordable housing and infrastructure). The Board also approved a pilot program selling 150 transfer station stickers to Norwell residents for $300 each, seeking to capture “found money” from neighboring residents whose town lacks a transfer station. Board members debated the pricing, eventually settling on $300 to remain competitive with surrounding communities while filling a gap left by declining sticker sales within Scituate.

Hull managed to secure favorable financing, unanimously approving $3.5 million in short-term notes for critical projects including Nantasket Pier dredging and the Village Fire Station renovation. Through competitive bidding, the town secured a true interest cost of 2.5%—significantly lower than the 4% originally budgeted—saving substantial interest expense on projects that include $1.8 million in General Obligation Bond Anticipation Notes and $1.7 million in Grant Anticipation Notes to bridge federal reimbursement delays.

Major Infrastructure Projects Move Forward Despite Fiscal Uncertainty

East Bridgewater began an ambitious soil consolidation phase for its new Central School building, with Superintendent Dr. Gina Williams announcing that approximately 1,500 truckloads of soil—roughly 50 to 60 per day—will be delivered to compact the earth over 10 months before foundation work begins in early fall. The district established “blackout times” to prevent truck deliveries during school arrival and dismissal, though the project will unfortunately displace the upcoming softball season. The superintendent also launched a strategic planning process following over 50 stakeholder meetings that identified equal access to extracurricular activities as a key concern, with a 20-25 member committee forming in February.

Rockland advanced a multi-million dollar Hingham Street Corridor Improvement Project currently at the 75% design phase. The project, stretching from Route 3 to Reservoir Park Drive, will include road widening, resurfacing, new sidewalks connecting hotel and Home Depot areas, and major realignment of the Hingham Street-Reservoir Park Drive intersection to accommodate Union Point development. In a parallel funding strategy, the Board previewed a federal “Slum and Blight” designation for the Union Street corridor—a term officials acknowledged can be “misunderstood” but is required to unlock Community Development Block Grant funds for sidewalk and facade upgrades. The meeting opened with lengthy tributes to the late Town Clerk Liza Landy, remembered as a “mench” and embodiment of public service integrity.

Hingham’s Center for Active Living cleared a major hurdle as the Zoning Board of Appeals unanimously approved a Special Permit for the 26,000-square-foot facility at Bare Cove Park Drive, though the Planning Board continued its Site Plan Review to February 9 to address engineering and traffic details. The project revealed sharp divides: officials touted “climate-friendly” architecture with heavy timber construction and Weymouth granite, 228 new trees and 500 native shrubs to offset clearing, and stormwater management designed for 100-year storm events. However, residents expressed “heartbreak” over the “deforestation” of mature oak forest, with Conservation Commission member Henry “Bob” Hidell (speaking as a resident) questioning the $8 million site preparation cost as “moving stuff around” rather than senior programming. The town’s peer-review engineer raised a red flag that no test holes have been bored at the specific infiltration facility locations.

State-Local Collision: Housing Mandate Lawsuit Hits Two South Shore Towns

Attorney General Andrea Joy Campbell filed suit against nine communities, including Halifax and East Bridgewater, for noncompliance with MBTA Communities Law requiring multi-family zoning districts. Halifax voters rejected Section 3A zoning at a December 16, 2024 special town meeting, while East Bridgewater residents rejected the requirement twice—at an October 7, 2024 special town meeting and again at the May 12, 2025 annual town meeting. Neither has taken subsequent action to propose compliant zoning. The lawsuit, filed five years after the law’s passage and six months after the July 14, 2025 compliance deadline, comes after the Massachusetts Supreme Judicial Court ruled in January 2025 that compliance is mandatory. Of 177 MBTA service area municipalities, only these nine remain noncompliant, with 165 having achieved compliance and sparked development projects expected to create nearly 7,000 homes across 34 communities.

State Representatives Kenneth P. Sweezey (R-Duxbury) and Alyson M. Sullivan-Almeida (R-Abington) issued a sharp rebuke: “It is unacceptable that taxpayer dollars are being used to sue our towns while those same towns are forced to use taxpayer funds to defend themselves. This amounts to punishment, not support.” They pledged to “oppose punitive, unilateral enforcement efforts that ignore local realities and erode public trust.” The Attorney General’s complaint seeks declaratory judgment, court orders requiring zoning amendments, official compliance determinations, and injunctive relief. Campbell emphasized that “courts have consistently ruled that compliance with this law is mandatory, and the urgency of our housing shortage compels me to act.”

Administrative Transitions and Regional Collaboration

The Silver Lake Regionalization Study Committee launched its 18-month investigation into full regionalization of the Halifax-Kingston-Plympton district, funded by a $130,000 state grant and conducted by the Edward J. Collins, Jr. Center for Public Management. The study arrives amid significant leadership transitions: Halifax is preparing for new Town Administrator Steven Solbo while potentially facing a Proposition 2½ override and negotiating five of six union contracts; Kingston has new Town Administrator Scott Lambiase just two weeks into the role; and the district’s Director of Finance and Operations Sarah Hickey is departing next month. The two-phase study will assess current operations by December 2026 and model regionalization implications, with a final report due June 2027. Committee members discussed hiring an outside consultant to prevent data gathering “bottlenecks” during the finance office transition.

Weymouth’s Town Council announced 2026-2028 committee assignments, with Council President Arthur Mathews noting some committees received requests from up to nine councilors despite five-member limits. The Council also moved forward $133,000 in historic preservation requests: $116,000 from the Historic Resource Fund for Abigail Adams Birthplace roof replacement and exterior restoration, and $17,860 for Old South Union Church bell restoration. Both measures were referred to the Budget Management Committee for further review.