Hanover Faces Budget Crunch, Select Board Weighs Override Option
Fire Department Seeks Federal Grant to Restore Staffing Levels
HANOVER - January 6 - Hanover officials are grappling with financial challenges as they prepare the fiscal year 2026 budget, considering both a base budget scenario and a potential override to maintain services and staffing levels.
Town Manager Joe Colangelo presented updated budget scenarios to the Select Board on Monday, outlining the stark choices facing the town.
"Even within the base budget, I am budgeting for an increase in staffing in the Finance Department," Colangelo said, highlighting the strain on town operations. "What we have found over the course of this year, and in particular since when our Finance Director / Town Accountant left in early November, is that we've cut down to the very marrow."
The base budget scenario includes $900,000 in free cash and maintains level services for Hanover Public Schools with a $1.4 million increase. However, it would result in staffing reductions in some departments.
An override budget scenario is also being considered, which would avoid using free cash and provide a $3.5 million increase for the school department. This option aims to restore staffing levels across town departments to fiscal year 2024 levels.
"The override budget does not anticipate the use of any free cash," Colangelo explained.
The Fire Department is pursuing a federal Staffing for Adequate Fire and Emergency Response (SAFER) grant to restore two firefighter positions, bringing the department back to 29 career firefighters.
Fire Chief Jason Cavallaro presented the grant strategy to the board, emphasizing its potential benefits.
"The fire service has an opportunity where we have federal funding through a grant program to assist local departments who are suffering from operational or financial challenges just like we are now," Cavallaro said.
The SAFER grant would fully fund the two positions for three years, with the town responsible for maintaining the staffing level during that period. Cavallaro noted that the grant application is due in February or March, with awards typically announced in July or August.
"In my view as the fire chief, I would be irresponsible if I didn't bring this up as at least an option to assist again both operationally and financially during these times," Cavallaro added.
The Select Board also discussed the potential impact on other departments. Under the override budget, all departments would be restored to fiscal year 2024 staffing levels. However, the base budget would see reductions, including in the Police Department's civilian staff.
Colangelo emphasized the strain on the Finance Department, which is currently operating with interim and contracted staff.
"We are really hurting in the Finance Department right now," he said. "We're kind of surviving with Jim as a contractor. We're surviving with a part-time accountant."
The budget discussions come as the town prepares for its annual town meeting. Colangelo presented a draft warrant, which includes articles for both the operating budget and a potential override.
Other significant items on the draft warrant include the first transfer station enterprise budget, potential updates to cemetery fees, and the use of opioid settlement funds.
The Select Board is scheduled to meet with the School Committee next Monday to further discuss budget options. A final budget proposal is expected to be presented in early February.