The Hanover Finance Committee (HFC) is an appointed Town committee composed of
Hanover residents charged with reviewing school and municipal financial matters and
offering guidance on those matters to public officials and residents. Although the
Dresden Finance Committee has been inactive, the HFC still makes every effort to
understand the impacts of the budget on both the Hanover and Norwich communities.

During a public meeting on Feb. 5, HFC voted 4-2 to support the proposed FY27 Dresden School District Budget of $33,705,109 (Article 4), and unanimously to support the collective bargaining agreements with the HanoverDresden Service Staff AFSCME, Local #1348 amounting to $101,809 (Article 3).

After costs from all articles are factored in, the Dresden budget will increase by $2,039,339 (or 6.42%). After accounting for all revenues and fund usage, the amount needed to be raised by taxation is $30,119,875. This represents an increase of $1,937,186 or 6.87% increase over last year’s assessment.

By town, based on per pupil splits, Hanover’s share of the Dresden assessment increases $1,461,433 (up 7.46%) to $21,039,160, while Norwich’s share rises by $475,753 (up 5.53%) to $9,080,715. For comparison, at the time the 2025 Dresden budget was being finalized, the New England CPI was 3.3%.

Including all warrant articles, school-level budget spending increases are $751,242 (7.23%) at the Richmond Middle School (which expects a budget-to-budget decline in enrollment of 3 students) and $1,138,023 (6.12%) at Hanover High School (which expects 18 additional students).

Both the current FY27 and previous FY26 budgets have been impacted by rising healthcare insurance costs. A rise of more than 25% in this year’s health insurance coverage costs contributed greatly to the YOY budget increase. With appreciation of the HFC, the Dresden School Board, staff and SAU70 administrators made an effort to contain these costs through cuts in areas of the budget that minimized impacts on student education. If these cuts were not made, the year over year increases in Hanover’s assessment would have approached 10%.

Although HFC supported this year’s budget for the Dresden district, it must be noted the support was not unanimous unlike previous years. Concerns with on-going healthcare and personnel cost pressures, that were raised last year, are still ongoing and have intensified. Urgent action is required to reverse this trend. The 7.46% assessment increase is far above the inflation rate and income growth for Hanover taxpayers. Given the current trajectory, the Dresden and Hanover budgets will double in around 11 years despite an expected slight decline in student enrollment over the next 5 years. This is clearly unsustainable.

Externalities such as upcoming infrastructure projects, increases in county taxes, uncertainty around funding at the state and federal levels requires HFC to view holistically the Town of Hanover’s tax assessments. Currently, the school’s portion comprises almost 2/3 of the town’s tax assessment. Careful consideration must be given to proposals that will have a cascading effect on increasing future budgets.

In light of these budgeting challenges, HFC recommends the school boards, SAU70 administration and staff – initiate budget planning earlier in the fiscal year, support a multi-year budget process, adhere to a zero based budget-to-budget (ZBB) approach for all budgets and implement structural changes needed to contain runaway costs. This cannot be done without addressing the largest cost drivers – salaries and benefits. Upcoming union contract negotiations will be a critical opportunity to impact this budgetary driver.

Comments on Collective Bargaining Agreements

The three-year collective bargaining agreement between the Board and the HanoverDresden Service Staff Association AFSCME Local #1348 (Article 3) will increase the status quo budget by $101,809 in FY27, $99,100 in FY28, and $92,784 in FY29. These increases are intended to retain recently hired personnel that have helped to fill more
than a half dozen open custodial positions with local hires, thus paring back the use
of outsourced services. The HFC supports this agreement.

Due to a confluence of factors including changes in key personnel in the SAU70 administration and the Dresden School Board as well as unanticipated increases in healthcare costs, the Dresden budget was not finalized in a timely manner. As a result
HFC’s position statement was delayed this year.

In closing, HFC looks forward to working with the School Board, SAU70 and Dresden administrators and thanks and applauds the efforts of students, faculty and staff in continuing our district’s pursuit of educational excellence.

HFC Members are Antonia Barry, John Dolan, Rich Greger, Greg Snyder, Peter Solberg,
Tara Velozo (Hanover School Board) and Carey Callaghan (Hanover Selectboard).