Borg Highlights Fiscal Stability but Warns of Rising Health Costs

North Attleborough Town Manager Michael Borg delivered his annual financial review this week, describing a town budget built on stable planning and predictable costs — while also warning residents that rising health insurance expenses are becoming a major financial challenge for the years ahead.

Borg’s presentation took place on Monday, Jan. 12 at North Attleborough Middle School and drew a crowd of more than 50 residents, educators, and local officials. He reviewed the town’s fiscal year 2026 budget using financial data current through November 2025, offering an update on where the town stands financially and what cost pressures are shaping future planning.

Borg said North Attleborough’s overall financial fundamentals remain sound and emphasized that the town has made disciplined decisions to maintain stability. At the same time, he made it clear that stability does not mean the town is immune to financial strain.

The Big Picture

During the presentation, Borg outlined where the town’s fiscal priorities are reflected in the budget. Education makes up the largest portion, accounting for 51.9% of the FY26 budget. Nondepartmental spending follows at 26.2%, and public safety represents 13.3%.

When additional costs tied to education — such as employee health insurance, pension spending, liability insurance, and Tri-County regional payments — are included, Borg said the overall education-related share rises to 61.6%.

Borg framed that budget breakdown as a reflection of community values and said it helps clarify where tax dollars are going. He also stressed that providing residents with clear financial information is part of building public trust.

Health Insurance and Prescription Costs Are the Biggest Pressure

While Borg said many personnel-related expenses are predictable year to year, health insurance was described as the most serious and growing cost driver facing the town.

According to the review, health claims have exceeded premium levels in recent months. Borg highlighted that claims reached 110% in August 2025, 103% in September 2025, and 140% in October 2025.

During the first four months of FY26, Borg said 15 high-cost claimants exceeded $50,000 each, totaling $1.38 million.

Prescription drug expenses were another key concern. Borg noted that costs tied to certain medications — including GLP-1 drugs — increased sharply, rising by $110,000 in one month between September and October 2025.

Looking ahead to the FY27 budget, Borg said the town is projecting a 9.5% increase in medical costs and a 16% increase in pharmacy costs, a trend that complicates budgeting due to Massachusetts revenue restrictions under Proposition 2½.

He summarized the challenge bluntly: health insurance costs are increasing far faster than allowable revenue growth.

Revenues Steady, But Growth Is Incremental

On the revenue side, Borg said local receipts are tracking as expected. Of the projected $9.33 million in local receipts for the current fiscal year, about $2.5 million (around 27%) had been collected as of November 2025 — with the note that major excise tax payments typically arrive later in the year.

Borg also estimated the town could see $800,000 in new growth for FY27, describing it as the highest level since a post-COVID boom in FY22. For comparison, he said FY26 generated just under $600,000 in new growth.

However, Borg cautioned that new growth isn’t a solution on its own. He said it helps, but it does not keep up with structural cost increases like healthcare.

Borg also shared a data point that reflects how much local real estate values have changed: the average assessed home value in town is now $636,634, up from roughly $400,000 in 2020. He noted that assessments affect tax bills but do not directly change the town’s total budget.

Capital Demands and Stabilization Funds

While financial conditions are stable, Borg said the town is facing major demand for capital investment. For FY27, North Attleborough received $26.4 million in capital requests, roughly split between general fund projects and enterprise fund projects paid by ratepayers.

Borg stated that meeting those demands will require disciplined prioritization.

He also reviewed the town’s stabilization funds and free cash:

• General stabilization fund: $8.1 million

• Capital stabilization: $3.6 million

• Special education stabilization: $74,700

FY26 free cash totaled $6.17 million, with major allocations including:

• $2 million for health insurance stabilization

• $2.7 million for Tri-County capital improvements

• $600,000 toward OPEB liabilities

• $500,000 reserved for potential snow and ice expenses

Borg said the town is using free cash deliberately to stabilize rising costs, strengthen capital planning, and reduce long-term liabilities.

Conclusion

Borg’s overall message was that North Attleborough remains in a strong financial position due to years of planning and careful budgeting — but that the town’s next challenge will be navigating rising health and prescription costs that are outpacing revenue growth under state tax limits. As FY27 planning begins, Borg said decisions will remain disciplined, data-driven, and coordinated between town and school leaders.

To view the full original reporting, visit North Star Reporter:
https://northstarreporter.com/2026/01/16/borg-cites-fiscal-stability-rising-health-costs-in-annual-review/