Mayor Katjana Ballantyne has submitted a $380.1 million Fiscal Year 2026 (FY26) operating budget that delivers stability and progress, even as federal uncertainty, rising costs, and slowing development challenge local governments across the state. The proposal includes a $7.85 million increase to Somerville Public Schools spending, new goals for Climate action, emergency response, and supportive housing, and a continued focus on equity, collaboration, and core service delivery.

“This budget proves we can be fiscally disciplined and forward-looking at the same time,” said Mayor Ballantyne. “Even in an unpredictable economy, we are choosing progress. We are protecting vital services, growing school investments, and improving government efficiency through management best practices and collaboration.”

 

The budget was formally presented to the City Council at a public meeting on Thursday, May 29.

 

 

At the heart of the FY26 budget is a 7.4% increase in school funding, continuing a three-year pattern of growth that totals a 34% rise in school funding since Mayor Ballantyne took office. That includes a 5.2% increase in regular budget funds, as well as an additional $1.5 million in union contract contingency funds that the Ballantyne administration will add to the school budget after negotiations, and $750,000 to be added from various school reserves, for a combined total of 7.4%.

 

The $1.5 million in school salary contingency funding aims to help bring SPS compensation in line with the City’s wage equity goals. These investments allow Somerville to defy regional trends of school cuts and layoffs and build comprehensive supports for students from cradle to career or college.

 

Across all departments, core City services—like snow removal, trash pickup, youth programs, and infrastructure maintenance—remain funded although with smallreductions in some cases, despite sharp cost increases in areas such as healthcare, energy, and goods and services.

 

The FY26 budget continues to scale internal capacity by breaking down silos and connecting cross-departmental work. In addition to fulfilling all current union agreements, the City is reserving funds to address future collective bargaining and remains committed to continue closing long-standing wage gaps.

 

The City is also launching a Permanent Supportive Housing Task Force to improve housing outcomes for chronically unhoused residents, and advancing small business-friendly permitting.

 

While other municipalities turn to layoffs, major cuts, or overrides amid economic headwinds, Somerville’s strong fiscal foundation and some strategic measures avoided this for the Somerville community. Somerville’s projected new growth tax revenue for FY26 ($8 million) is slowing compared to recent years, but remains a vital source of additional City funding. Thanks to proactive planning, reserve funds, and three consecutive AAA bond ratings, debt service costs are kept lower. Careful use of reserves, a 6-month hiring freeze for unposted positions, and surgical reductions to nearly every city department  helped close a $4 million budget gap without layoffs or cuts to services. Reductions were designed to minimize impacts to services.

 

“Other cities are scaling back. In Somerville, we did have to take some extraordinary measures but we are staying the course,” said Mayor Ballantyne. “We are using creative work-arounds and efficiencies to maintain services. You will still find your librarian at the desk, your street plowed, and your recreation program on the calendar. And we will still be making progress toward out shared priorities like affordable housing, road improvements, fostering a thriving arts community, serving vulnerable residents, and more.”

 

Residents are encouraged to participate in the budget process:

Attend in person at Somerville City Hall (93 Highland Ave.) or visit somervillema.gov/budget to read the full FY26 budget, watch the presentation, or submit feedback.