Mayor Domenic J. Sarno and Chief Administrative and Financial Officer (CAFO) Cathy Buono announced today the Fiscal Year 2027 (FY27) budget recommendation that will be submitted to the City Council for approval. The recommended FY27 budget totals $1.04B, representing a 5.4% increase over the FY26 Adopted Budget, and reflects the City’s continued focus on strong financial management, long-term stability, and maintaining the core services our residents rely on every day.
The School Department, which accounts for more than two-thirds of the total operating budget, totals $708.8M, a 5.8% increase over FY26. The city-side budget is $330.1M, an increase of 4.5% over FY26. Of the total budget, over $862M, or 83%, is non-discretionary and we are unable to touch it.
For the twelfth consecutive year, the City has balanced its budget without the use of stabilization reserves. The City’s stabilization reserve balance now stands at $75.1M, with an additional $19.3M set aside in pension reserves, bringing total reserves to more than $94.4M. Mayor Sarno’s Administration remains committed to growing these reserves as part of a broader strategy to support long-term financial stability and prepare for economic uncertainty. Preserving these funds allows the City to respond to changing conditions and unexpected challenges on the Federal and State level, where steep cuts have been proposed. This ensures that we can maintain stability and sustainability, protecting the core services our residents and business community rely on.
In a testament to the city and Mayor Sarno and team’s strong financial management, Springfield continues to recognize the highest bond rating in the City’s history. In April 2026, Standard & Poor’s reaffirmed the city’s “AA-” rating with a “stable” outlook. S&P stated that, when compared to other municipalities, Springfield is considered an outlier for due to the Mayor’s strong fiscal oversight as he has been able to avoid making difficult decisions such as implementing layoffs, reducing or cutting core services, or asking our taxpayers to approve a Proposition 2 ½ override.
| FY26 Adopted Budget | FY27 Recommended Budget | % Variance |
City | $ 315.7 | $ 330.1 M | 4.5% |
Schools | $ 669.9 | $ 708.8 M | 5.8% |
Total | $ 985.6 | $ 1.04 B | 5.4% |
Stabilization ‘Rainy Day’ Reserve Funds |
$ 75.1M |
Mayor Sarno stated, “My administration remains committed to providing tax relief for our residents. To that end, in working with our award-winning finance team and State delegation, we have created a targeted tax relief program through a Home Rule petition, which was recently signed into law by Governor Healey. This program, which I have already committed $1M towards, will provide relief to those property owners who are just above the threshold of eligibility for existing State statutory exemptions. It is worth noting that Springfield is just the second municipality in the entire Commonwealth that has implemented this through home rule legislation, giving us the ability to commit City funds and help additional homeowners in need. This builds off my administration’s previous tax relief initiatives, including the innovative approach to tax relief through the strategic investment of US Treasury notes, which have yielded $2M per year for relief since FY24. Lastly, we have opened the door for additional residents to qualify by reducing the age requirements for tax abatements for our Seniors, from 70 years old down to 65. In addition to reducing the eligibility age, the abatement amount was doubled from $500 to $1,000.”
Mayor Sarno explained that for FY27, “Initial department budget requests resulted in a projected gap of approximately $23.7 million. Closing this gap required a balanced approach that focused on controlling spending, using available revenues wisely, and avoiding layoffs or cuts to core services. My administration worked closely with the Office of Administration and Finance and all City departments to review every part of the budget and make adjustments where needed, ensuring that decisions were made carefully and with a clear focus on maintaining services for our residents.”
He continued, “The FY27 budget was balanced through a combination of targeted spending reductions, vacancy management, strategic use of grant funding, and realistic revenue estimates. In FY27, departmental “other than personal services” (OTPS) budgets decreased 2% overall, reflecting a disciplined approach to managing controllable costs. This work would not have been possible without the cooperation, flexibility, and thoughtful planning of our Cabinet and Department Heads, who continue to find ways to operate more efficiently while keeping services strong. Their efforts have been critical in helping the City meet its needs today while remaining in a stable financial position moving forward.”
“For the second consecutive year, we have seen a decline in our full-time equivalent (FTE) employee count. With no layoffs, my administration, alongside Department Heads, has continued to carefully manage staffing levels in FY27, making adjustments where possible to eliminate or reduce vacancies and stagger hiring. This approach is especially important as personnel costs represent the largest share of the City’s operating budget. Rest assured, the overall decrease of approximately 5 FTEs will not affect services or programming for our residents, but instead reflects another way we are responsibly managing costs within our control.”
The FY27 Recommended Budget maintains all current programs and services across City departments, reflecting a continued focus on stability, cost control, and long-term sustainability.
Find the Fiscal Year 2027 Recommended Budget on the city’s website: https://www.springfield-ma.gov/finance/
Thank you to Focus Springfield for recording and streaming the announcement: Mayor Sarno and CAFO Buono Release FY27 Budget
