Proposed Springfield budget tops $1 billion for first time

Mayor Domenic Sarno holds up a copy of the recommended budget for fiscal year 2027.
Reminder Publishing photo by Sarah Heinonen

SPRINGFIELD — For the first time, the Springfield city budget is expected to be more than $1 billion for fiscal year 2027.

Mayor Domenic Sarno, who presented his proposed budget at a press conference on May 1, said the major drivers are the schools and non-discretionary costs.

The city’s portion of the $1.04 billion budget is $330.1 million, 4.5% more than in FY26. The school budget is more than double the city’s side, at $708.8 million, 5.8% higher than last year. Chief Administrative Finance Officer Cathy Buomo described the budget as “fiscally responsible.” She said 83% of the city’s costs are non-discretionary, including contracts and the increase in retirement costs, which is 8% this year. The city uses the state’s Group Insurance Commission. Sarno said, “The GIC has been able to stabilize the costs.”

Sarno said this is the 12th year in which no reserve money has been used to balance the budget. The city has an AA- bond rating from Standard & Poor, and $75.1 million in its stabilization account, which is essentially a municipal saving account or rainy-day fund. The bond rating helps determine interest rates on the city’s debt.

The city has managed a balanced budget this year, in part, through department heads cutting costs where possible. Code Enforcement and Health and Human Services were fully funded. Sarno said Parks, Buildings and Recreation Management will have polls and splash pads open this year, and he announced, “The swan boats are back.”

The School Department budget faced a deficit of just over $3 million this year. Superintendent Sonia Dinnall said the department is still working to close that gap, with help from an unexpected decrease in transportation costs and “tightening our belts” through attrition. She said there would be no cuts to current positions, and the impact would not be felt in the classroom.

Next year, because the Student Opportunity Act is ending, the School Department is looking at a $20 million deficit. Dinnall said her team is working to find revenue streams and opportunities.

“We will continue to advocate for the maximum amount of funding that we can receive from the state, with the understanding that the state has been very supportive and the state is also facing pressures and cuts and things of that nature from the federal government,” Dinnall said.

Sarno praised the amount of economic development ongoing in the city, from the Springfield Crossing shopping plaza to the triple digit increase in housing stock. He also said Springfield has more school building projects than any other municipality. The Massachusetts School Building Authority, a semi-governmental entity, reimburses cities and towns for eligible school construction and repair costs. Springfield receives an 80% reimbursement rate.

Sarno said the loss of $6 billion in federal funds to the state means less money to be passed on to cities and towns. Looking at the impact of the budget of property tax rates, he said, “We have to be able to provide the services to the residents and businesses in this community. Every year, I put in money to create more tax relief. Here’s the thing: the real estate market is still strong. We try to be as fair as possible.”

He continued, “Some councilors say, ‘use the reserves.’” He explained that using one-time funding for tax relief will create a cliff as it becomes baked into the tax calculations for future years. Sarno said he put $1 million into targeted tax relief for property owners with income just above the eligibility for state tax exemptions. The age for tax abatement has been reduced from 70 years to 65, and the abatement amount has doubled to $1,000.

The City Council has received copies of the budget, and Buono said she has collaborated with Council President Tracye Whitfield to schedule reviews with department heads. The full FY27 budget proposal can be found at springfield-ma.gov/finance.