Easthampton Boards Warn of Structural Deficit as Insurance Costs Surge 38 Percent

EASTHAMPTON — September 9, 2025 — Easthampton's Select Board and Finance Committee held their first joint quarterly meeting and cleared a 12-article special town meeting warrant while confronting a deepening fiscal crisis. Town Administrator Scott Garren told the boards that a combined 38 percent health insurance premium increase — 18 percent on July 1 followed by an unexpected 20 percent mid-year hike effective October 1 — will cost the town roughly $350,000 this fiscal year, with the active-employee monthly bill jumping from $188,000 in September to $227,000 in October. The Finance Committee unanimously backed a $150,000 transfer from the operating stabilization fund to cover immediate insurance costs, while a motion to recommend against a $12.17 million senior center borrowing authorization ended in a 2-to-2 tie and failed, sending the article to the September 30 Special Town Meeting without a committee recommendation. Garren also presented a draft consolidated capital plan showing average annual needs of roughly $1 million across major departments and floated a dedicated override component of $250,000 to $350,000 per year to fund it, noting the town has not been able to certify free cash for fiscal year 2024 and cannot yet obtain a bond rating.