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Town administrator warns of large FY27 budget pressures as health insurance costs rise
Summary
Allison told the selectmen the town should expect large FY27 budget pressures, citing a likely double-digit increase in health insurance costs and a current health insurance budget above $1 million, which will shape upcoming budget guidance for departments.
Town administrator Allison told the Nahant Board of Selectmen on Nov. 5 that the town faces significant budget pressures for fiscal year 2027, driven in part by rising health insurance costs.
"From everybody that I'm hearing, they're saying expect a double-digit increase again this year, which our health insurance budget is already over a million dollars. So, another 18% increase on that is going to be a big cost for the town," Allison said. She said collective bargaining costs are known for the next year and that she will model known salary and benefit costs before issuing budget guidance to department heads.
Allison said she has scheduled meetings with the school superintendent and department heads to prepare budget drafts; the town will ask department heads to anticipate constrained limits in their requests. She said she will meet with the town's MIIA (insurance) representative to clarify health insurance projections and then provide department-level guidance.
The board did not take votes on budget items at the Nov. 5 meeting. Allison said the town will return to budget discussions after the special town meeting and as departmental meetings are completed.
