0.87 Percent State Aid Increase Leaves Rockland Facing 'Robbery' Health Care Hikes
Key Points
- Town leaders warned of a fiscal crisis as a 19.7% health insurance hike and rising retirement costs outpace a 0.87% state aid increase.
- The projected $130 million cost for MWRA water expansion was deemed unaffordable for taxpayers without significant state assistance.
- Legislators warned that a potential state income tax cut ballot question and high MassHealth costs are squeezing the pool of available local aid.
- Hillary Waite was announced as the town’s new permanent Sewer Superintendent starting in late March.
- The board appointed Diane Holding and Patricia Norton to the Council on Aging to fill several vacancies.
A nearly 20 percent spike in municipal health insurance costs, characterized by Select Board Chair Michael O’Loughlin as robbery,
has left Rockland officials grappling with a severe fiscal gap for the upcoming year. During a joint session with state legislators and school officials on February 17, Town Administrator Doug Lap presented a stark financial picture showing that the town’s entire projected revenue growth from property taxes and new state aid has already been swallowed by rising fixed costs.
Lap highlighted that while the Governor’s proposed budget offers Rockland a 0.87 percent increase in unrestricted general government aid, that small gain is dwarfed by a $1.7 million increase in health insurance and a $444,000 jump in retirement assessments. The big bar on the bottom is our entire Prop 2.5 increase in tax revenue plus new growth,
Lap said, pointing to a chart of the town's financial obligations. I cannot stress enough how terrible that is for the town of Rockland.
The legislative outlook provided little comfort. Senator John Keenan noted that while state revenues grew in January, the state’s $60 billion budget is operating on a razor-thin
surplus of just $52 million. He warned that a potential ballot question to cut the state income tax from 5 percent to 4 percent could further destabilize local aid. Representative David DeCoste told the board that the legislature often views suburban communities as undertaxed,
though he argued that he would prefer to see tax credits go in that direction than some of the things we ended up spending money on.
Local officials expressed frustration with the state’s funding formulas. Member Steven O’Donnell noted the 0.87 percent increase is the lowest in over a decade, questioning if revenue is being diverted to new programs being spun up.
Chair O’Loughlin was more blunt, calling the health insurance spike disgusting
and arguing that the state has broken
the local aid system. They took the [cannabis] money out of our pockets,
O'Loughlin said. They decided they took it from your district and put it into their district.
The school department is facing similar pressures. Incoming Superintendent Jane Hackett criticized the state’s Chapter 70 education funding, noting that while the state claims a 2 percent increase, the reality for Rockland is closer to 1.56 percent. She urged the state to increase circuit breaker
reimbursements for special education from 75 percent to 90 percent. Enrollment decline is not the only problem with Chapter 70,
Hackett said. What we're asking for is the state to increase its partnership with us in absorbing the costs.
Member John Ellard, Jr. raised concerns about potential state changes to excise tax collection laws that would prevent the town from marking licenses at the RMV for non-payment. Anytime you have both the MMA and the Mass Treasurer Collectors Association both suggesting or strongly recommending that you all don't do something, you all probably shouldn't do it,
Ellard told the legislators, adding that previous changes to tax title laws were atrocious.
Beyond the budget, the board received a sobering update on the regional effort to bring MWRA water to the South Shore. While membership fees might be waived, the construction buildout for Rockland and its neighbors is estimated at $130 million. Lap stated that without massive state intervention, the project is just not affordable
for local taxpayers, despite state pressure to build more housing through MBTA zoning mandates. Vice Chair Lori Childs pointed toward the redevelopment of the South Shore Naval Air Station as a potential silver lining, noting it could eventually bring conservative guesstimates
of $4 million to $6 million in annual tax revenue. Why does Holbrook care?
Childs asked during the discussion on aid distribution, emphasizing the need to focus on local impacts.
The board also addressed personnel and community appointments. Diane Holding was appointed to the Council on Aging after sharing her deep roots in the community. I've been president of the boosters for six years in Rockland High,
Holding said, noting her personal experience caring for her 98-year-old mother motivated her to serve. O’Donnell called her appointment a no-brainer.
Motion Made by S. O’Donnell to appoint Diane Holding to the Council on Aging. Motion Passed 5-0-0.
The board also welcomed Patricia Norton, a retired school teacher, to the Council on Aging as an alternate. Norton, who moved to Rockland in 2020, noted she is a regular visitor to the Council on Aging
and believes in the good work that the senior center does.
Motion Made by Unidentified Member to appoint Patricia Norton as a COA alternate. Motion Passed 5-0-0.
Earlier in the meeting, the board handled routine business, though one member had to step aside for the review of the previous session’s records. Motion Made by Unidentified Member to approve the minutes from February 3, 2026. Member Tiffanie Needham noted, I'm actually recusing myself because I missed the last one.
Motion Passed 4-0-1. Needham later took a moment to praise the Recreation Department for winning the 2026 Agency of the Year award, thanking Chair O’Loughlin for his leadership and O’Donnell for his world-class
efforts in the community.
In his Town Administrator’s report, Lap announced that the Sewer Commissioners have hired Hillary Waite as the new permanent Sewer Superintendent, effective March 30. He also noted that the new Town Charter is currently on the Governor’s desk awaiting a signature. The meeting concluded with a lengthy tribute to Black History Month from O’Donnell, who quoted titans of the civil rights movement. Democracy is not a state. It is an act,
O’Donnell said, quoting the late John Lewis. Let the spirit of peace and the power of everlasting love be your guide.