Hanover approves $81.16 million FY27 budget and dedicates meals‑tax receipts to capital and reserves

Hanover voters approved a $81,158,721 general fund operating budget for fiscal 2027 on May 4, 2026, endorsing the advisory committee’s recommended motion that uses $888,497 of certified free cash to moderate the property‑tax increase.

The advisory committee, which prepares an independent recommended column for town meeting, explained that the budget reflects tight run‑rate limits set by the town manager — 2.25% for municipal departments and 2.75% for the school department — and projected pressures driven largely by accelerated Plymouth County retirement funding requirements through FY32. "If Hanover collects more property taxes during this period, it makes it more likely to maintain service levels, but also makes it less affordable for residents," the advisory committee summary warned.

The select board and school committee both supported the motion. Select board commentary described a three‑bucket policy for meals‑tax receipts: about 60% for capital, 20% to the general stabilization fund, and the remainder to the town’s OPEB (other post‑employment benefits) trust. The committee presented detailed allocations under Article 7 — including $300,000 for a middle school roof, $100,000 for a DPW F‑450 dump truck, $60,000 to start the mandatory five‑year property revaluation, $200,000 to the stabilization fund, and the balance to the OPEB trust — and recommended town meeting approve those appropriations.

Representative Dave Dost, who briefed the meeting earlier on the state budget, noted state aid moves that affect the town: “Under the House proposal, Hanover will receive a total of $8,471,000 in Chapter 70 education aid for schools. This represents an increase of approximately $383,000,” he said. Advisory committee commentary and department presentations laid out how that and other revenues interact with operating lines and the town’s free cash balance.

Town meeting approved the advisory committee motion by voice vote. The committee emphasized that adopting the recommended budget does not eliminate long‑term funding challenges: advisory projections show cumulative funding gaps through FY31 tied to retirement obligations and limits on levy growth. Town officials said the budget decision balances near‑term affordability and longer‑term sustainability while preserving service levels for FY27.

Next steps: departments will implement the FY27 spending plan; officials said they will continue to pursue state and grant funding opportunities and reframe future budgets if supplemental aid or unexpected costs arise.