Holyoke City Council approves FY27 budget with minor cuts

The Holyoke City Council approves the city’s FY27 operating budget during its June 23 meeting.
Photo credit: Holyoke Media

HOLYOKE — The City Council passed a budget of approximately $213 million for fiscal year 2027, an increase of $8.97 million, or 4.4%, over FY26.

Mayor Joshua Garcia unveiled the proposed budget during his annual State of the City address during the May 19 City Council meeting, and after hosting multiple budget hearings with each department, the City Council met on June 23 to make amendments to the budget before its final approval.

In total, the City Council cut unfilled positions across three different departments that totaled $45,000, while additional proposed cuts did not pass.
City Councilor Israel Rivera explained that the cuts are an attempt to save taxpayer’s money.

“There’s a difference between not wanting to cut anything or being good stewards of the city’s money,” Rivera stated. “If we’re not going to have someone until like November, Octoberish, that’s a good chunk of money that the taxpayers could have kept in their pockets.”

Before the City Council went through each department’s budget, City Councilor Howard Greaney proposed cutting the budget by 2% “across the board,” but that did not pass.

“I think this is an inflated budget, and I think with the economic conditions in this city and cities across the country, I think it would be wise of us to bite the bullet and cut this budget,” Greaney stated.

City Councilor Patty Devine argued that every municipal budget could not be cut by 2%.

“So that would be Police, that would be Fire, that would be DPW, that would be collective bargaining agreements, which would probably be illegal,” Devine explained.

After going through each department’s budget and line items, the FY27 operating budget was approved by a vote of 10-2 during the June 23 meeting.

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.”

The city’s largest local revenue source continues to be the property tax levy. The FY27 budget anticipates growth in the tax levy supported by allowable Proposition 2 1⁄2 increases, ongoing new growth and continued investment within the city’s tax base.

Estimated tax levy revenues are projected at approximately $73 million in FY27, which the mayor said reflects continued stability in the city’s property tax base while remaining mindful of affordability concerns for residents and businesses.

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.

The Holyoke School Committee approved an approximately $128.7 million operating budget for fiscal year 2027, which “puts students first” and invests in strategies that support all children, according to interim Superintendent Anothony Soto.

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.

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

“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.”