Holyoke mayor gives State of City address

Mayor Joshua Garica gives his annual State of the City address during the May 19 City Council meeting.
Photo credit: Holyoke Media

HOLYOKE – Mayor Joshua Garcia officially unveiled his proposed $213 million budget, an increase of $8.97 million, or 4.4%, over FY26.

According to the mayor, the proposed budget “reflects a balanced and fiscally responsible financial plan designed to maintain core municipal services, protect long-term financial stability and continue strategic investments throughout the city of Holyoke.”

His proposal, which went in front of the City Council on May 19, accompanied his annual State of the City address, which reflects on Holyoke’s past, present and future standing.

Garcia said the 4.4% increase in the budget is primarily driven by rising education costs, health insurance, retirement contributions, transportation and other operational expenditures.

Education remains one of the city’s largest financial commitments. The FY27 budget includes approximately $104.3 million in total funding for Holyoke Public Schools, supported through a combination of local contributions and state education aid.

The FY27 Net School Spending appropriation is projected at approximately $125.4 million, a $4.66 million increase from FY26. The increase is primarily driven by continued implementation of the Student Opportunity Act, including an increase of approximately $3.83 million in Chapter 70 aid and an increase of approximately $820,709 in the city’s required local contribution.

FY27 school transportation costs are projected at approximately $12.5 million, about a $590,688 increase from FY26. FY27 health insurance costs are projected at approximately $14.9 million, a $1.1 million increase from FY26.

Meanwhile, the Retirement Board’s accelerated funding schedule, targeting full funding by 2033, requires an approximate 4.14% increase between FY26 and FY27.

Garcia’s proposed budget includes just over $1 million in surplus. The mayor stated that this sounds familiar because he already told the council and the public the same thing last year, but that surplus had to go toward subsidizing the sewer fund.

The City Council’s agenda featured a proposed sewer rate of $9.11 for FY27, which the council decided to send to the Ordinance Committee for further discussion.

Garcia stated, “If we can pass this rate before the budget is set, we can make sure that the taxpayers will continue to benefit from the one million in savings.”

He also spent the council meeting talking about the positive fiscal state of Holyoke while acknowledging the struggles facing neighboring communities.

“All around us, neighboring communities have had to put override votes before their communities just to keep their governments funded. Programs are getting slashed, taxpayers are paying more and getting less,” Garcia said. “In Holyoke, we’ve worked hard to prevent this, but the fact remains that in the coming years, we can expect less support, even as costs rise. That’s why we need to keep being innovative, support initiatives that help expand our tax base, finding ways to keep costs low and live within our means.”

Garcia acknowledged that Holyoke has continued to deliver services residents rely on without disruption and without dipping into their reserves.

During his State of the City address, he also highlighted positive developments in the city, including the passing of the Municipal Finance Modernization Act and Holyoke Public Schools regaining local control. He also mentioned the Holyoke Teachers Association ratifying their first contract since the end of receivership, and DPW having one of the best contracts in the region — allowing for better management for the city’s infrastructure — as other major milestones the city reached.

He did, however, state that the city still has work to do when it comes to its zoning and special permit laws.

“We all know that the city’s zoning needs to be changed to reflect our needs as a community as part of a comprehensive plan,” Garcia stated. “That’s why, from the beginning of my administration, I prioritized creating an updated roadmap for Holyoke’s future. A roadmap grounded in data, public engagement and long-term sustainability.”

Over the past two years, the Holyoke Planning Board, in partnership with the Department of Planning and Economic Development, community stakeholders, and outside consultants, developed a plan for future growth and climate resiliency.

The first package includes 47 proposed zone changes, consistent with recommendations from the Planning Board. Garcia said the changes would modernize and simplify outdated rules and support Holyoke’s long-term growth.

Garcia admitted that the way these proposals were rolled out created unnecessary confusion, and the tension that ensued “was as predictable as it was preventable.” He said he will travel around each neighborhood in Holyoke this summer to hear directly from the people about these proposed zone changes.

Garcia concluded, “None of this will be easy. We’ll keep messing up. But if we keep going, if we keep summoning what’s best in us, then I have no doubt that we will be able to weather whatever storms may come. With confidence. With hope. With trust.”

Now that the proposed budget is out, the City Council will host hearings on June 1 and June 10 with city departments to address the budget ahead of their review and vote. The budget and Garcia’s narrative can be found on the city’s website at holyoke.org.