One Percent Budget Reduction Mandated Following Discovery of $1.1 Million Healthcare Forecasting Error
Key Points
- Discovery of a $1.1 million budgeting error caused by utilizing outdated Medicare rate data
- Extrapolated annual costs for GLP-1 weight loss medications reached $3.3 million before coverage was discontinued
- Town Manager warned that 50% of new revenue is now dedicated solely to healthcare and pension obligations
- Select Board requested an alternative budget proposal reflecting a 1% reduction in the tax levy raise
- Excess levy capacity remains at a historically low $300,000 sparking fears of a future bond rating downgrade
- Board discussed moving the annual Town Meeting to May to ensure state aid numbers are finalized before voting
The Plymouth Select Board convened on January 9, 2026, to address a critical $1.1 million deficit discovered in the fiscal year 2027 budget projections. Town Manager Derek Brindisi opened the session by highlighting that the $343 million budget is being heavily strained by fixed costs, specifically healthcare and pensions, which are consuming 50% of all new town revenue. Brindisi warned the board of the fiscal trend, stating, I’m forecasting a very bleak outcome in 18 months from now... we have a yellow blinking light that’s saying caution.
Finance Director Lynn Barrett explained that the shortfall arose from using outdated Medicare rates during the October forecasting phase. Barrett told the board, I was horrified to say the least and very embarrassed. But that's the reality of what happened.
Chair Kevin B. Canty responded with support for the staff's honesty, noting, I appreciate the transparency... I can only imagine how you felt realizing you put in last year’s data in that particular line item.
Public testimony provided contrasting views on the town's financial health. Resident Steve Leiden praised the dedication of municipal staff, saying, I don’t think the residents realize or see all the you know or understand the workload that our employees have.
However, the conversation shifted toward the high cost of the healthcare trust fund, which has seen monthly claims spike to $5 million. Guest speaker Dale Weber, a member of the Insurance Advisory Committee, suggested the crisis might be overblown due to the impending removal of high-cost weight loss drugs from the insurance formulary this July. Weber argued, We’ve dealt with 7% increases many times in the past. No fiscal cliff, no crisis with health insurance.
The board members expressed deep concern over the town’s dwindling excess levy capacity, which has dropped from $10 million to approximately $300,000 in recent years. Vice Chair David M. Golden Jr. spearheaded the call for austerity, arguing, I’d like to see us be more fiscally conservative with the funds that we’re entrusted with.
Supporting this, Richard J. Quintal Jr. emphasized the burden on residents, stating, I will not support using that much of the levy... it’s time to make some cuts.
William Keohan suggested that future growth must be driven by smarter planning, noting, We should be using that master plan as a guidance on how we’re going to build future revenue opportunities.
Deborah Iaquinto agreed to look at cuts but urged caution, saying, I really don’t want us to make a knee-jerk reaction... to solve like an immediate something that we see as an immediate crisis today that will have long-term implications.
The session concluded with the board directing the Town Manager to find specific areas where spending can be curtailed before the budget is finalized for Town Meeting. **Motion Made by David M. Golden Jr. to see an option presented for a 1% reduction in the tax levy raise.** **Vote Passed 5-0**. The meeting was adjourned at the conclusion of the session.