Vieau releases $283.5 million FY27 budget proposal for the city

CHICOPEE — Mayor John Vieau has officially submitted a recommended fiscal year 2027 operating budget to the City Council for review.

The proposed budget is approximately $283.5 million, representing an increase of approximately 2.6% from FY26.

“This budget reflects our continued commitment to fiscal responsibility while maintaining essential services and supporting the operational needs of our community,” Vieau said.

The School Department budget reflects the required net school spending amount of about $130.9 million, an increase of $7.8 million that was driven primarily by the loss of approximately $5 million in Chapter 70 funding, increased transportation costs of $2 million, employment contractual obligations and educational programming needs.

For FY27, the number of low-income students decreased by 217 students. This caused the low-income percentage to drop to 69.34%, which is below the group 11 minimum threshold of 70%. This moved Chicopee into low-income group 10, and the difference is about $1,071 per student. Because of this, $5 million will not come to Chicopee because the city went under the 70% threshold when the low-income classification was reevaluated.

The School Committee approved an approximately $139.4 million FY27 budget during its June 1 meeting. Salaries take up around 75% of the budget, or $106 million, and another $35 million is allocated for expenses. The total budget is approximately $142.5 million due to other income sources.

To support educational operations, the Stabilization Fund for educational purposes will provide approximately $8.4 million in additional funding. School Committee member Deanna Rousseau said at the June 1 School Committee meeting that the allocation helps create a fully funded and balanced budget. However, referring to the Education Stabilization fund, she added, “that might not necessarily always be there, so I think a lot of hard work went into this, but there will have to be continued eyes on expenses as they continue to grow and also be adjusted to meet the needs of our school system.”

According to the press release, the school budget focused on creating a caring and respectful place to learn, empowering and valuing students, educators, and staff, having academics that inspire, focus on family and community connections. The budget also focused on providing effective operations and equitable resources.

Public safety remained a priority in the FY27. The Fire Department budget increase of $2.1 million is primarily attributable to settled union contracts. The Police Department budget includes $464,750 for the transfer of public safety technology accounts previously under the MIS Department, reflecting a reallocation of expenditures rather than new spending. The city also faces rising costs, including an estimated $1.4 million increase in medical insurance. However, reductions in contingent retirement expenditures and debt-related interest costs help offset financial pressures and support long-term fiscal stability.

Enterprise funds, including water and sewer operations, remain stable and continue supporting critical infrastructure and services while maintaining affordable rates, according to the mayor.

The press release states that federally directed spending from the federal delegation helped reduce the impact of mandated sewer treatment and nitrogen improvement projects.

This budget also reflects prioritization to protect core services, support Chicopee’s workforce, and position the city for continued financial affordability.

“I thank the City Council, department heads, School Department leadership, and city staff for their collaboration and dedication throughout this process,” Vieau stated. “We all understand the need of our residents and businesses for affordability, maintaining municipal services, advancing our community together, and our combined approach to the budget reflects these values.”

The FY27 Operating Budget has also been dedicated to the memory of Sharyn Riley, the past city auditor who guided the budget process in the city for over forty years. She recently retired in February and passed away in May.