We're less than two months away from the release of the Mayor's proposed FY 2026 budget. Right now our Budget Director Mike Mastrobuoni and his staff are working with the Administration and department heads on a process that is complex and arduous under the best of circumstances. This year it's all happening under the specter of threats from the Trump regime of cuts to federal funds to our city as a result of our Welcoming City Ordinance that leaves federal immigration law enforcement to federal agencies. With approximately $19 million on the line for things like school lunch, special education, homelessness service, public safety, street safety, and prevention efforts with our youth, losing these funds would blow an enormous hole in our budget and necessitate some very tough budgeting decisions.

At the March 11 meeting of the City Council's Finance Committee, the City's Director of Finance, Ed Bean, delivered a presentation containing a mid-year financial report on FY25 as well as a high-level look ahead to what we're looking at in the FY26 budget. 

We're looking at around a $15.4 million increase to our levy limit (total revenues from taxation) in FY26. We're also projecting potentially a net of $1 million more between increased state aid and lower state assessments, with some other revenue areas like local meals and room taxes and looking uncertain.

On the expense side, we're staring at a $3.4 million increase in our health insurance costs (largely driven by the price of GLP-1 weight loss drugs WeGovy and Ozempic), an additional $1.4 million in pension funding costs, and a $2.3 million in debt service. That's around $7.1 million before we get to Schools, which are around a third of our budget and figure to see over a $5 million increase this year. Then factor in ongoing collective bargaining with multiple municipal unions and we're left with very little -- if anything -- left over to address all the other budget priorities.

City Councilors shared their individual budget priorities for FY26 in memos introduced to the council the past two months. You can read through my FY26 budget priorities here. As the Chair of the Finance Committee since 2022, I've led a process each year whereby the council has identified our top shared budget priorities and conveyed these to the Administration. This year we're trying something slightly different, with a more organic approach at our April 2 Finance Committee of the Whole meeting at City Hall. Councilors will go around The Horseshoe and talk about our top individual budget priorities, with colleagues then having the opportunity to voice agreement. The video and minutes of this meeting will be the product for the Administration to look at.

The Administration is looking to release the proposed FY26 budget around Memorial Day, kicking off Budget Season 2026. Here are the key dates for that, with all meetings being conducted via remote participating unless otherwise noted:

Thursday, May 29: Mayor’s Budget Presentation & School Budget special meeting*
Tuesday, June 3: Public Hearing on Proposed FY 2026 Budget
Tuesday, June 10: Departmental Budget Hearings (Night 1 of 3)
Monday, June 16: Departmental Budget Hearings (Night 2 of 3)
Wednesday, June 18: Departmental Budget Hearings (Night 3 of 3)
Monday, June 23: Departmental Budget Hearings (Follow-ups by request)
Tuesday, June 24: Cut Night*
Thursday, June 26: City Council Regular Meeting (vote on amended FY 2026 budget)*

*in person meeting in City Council Chamber at City Hall (93 Highland Avenue)