City of Worcester, MA

WORCESTER, Mass. – City Manager Eric D. Batista announced Friday the proposed Fiscal Year 2027 operational and capital budget. 

Notably, this is the municipality’s first $1 billion operating budget, a milestone, driven largely by increased State Aid contributions through the Student Opportunity Act over the past several years as well as Worcester’s growing property values and new private investments. 

This year, the budget theme is Funding the Future: Smart Spending, Stronger Outcomes.

The theme reflects the culmination of years of smart spending that has allowed the municipality to weather current economic constraints while at the same time prioritizing near-term constituent needs. The city’s strong financial position, evidenced by a stable bond rating from three bond rating agencies and an excess tax levy increase to $25.8M, allows the municipality to continue to invest in both employees and infrastructure. 

Key highlights of the FY ’27 budget are detailed below.

Acknowledging that current employees’ hard work matters, unrepresented employees will receive a 2% Cost of Living Adjustment (COLA).

While the financial constraints of the day have resulted in no net new positions in the proposed budget, the municipality has been able to reallocate funding from previously unfilled positions to fund new positions to address priority needs. Just as it’s a tough time for municipalities, it is also a difficult time for businesses, and the Administration is striving to support business growth. This budget includes a new plumbing and gas fitting inspector and new wire and electrical inspector who will help businesses get through the permitting process more efficiently. It also adds position in the Business Development Division of the Executive Office of Economic Development to support small businesses. 

The administration is also proposing a $46 million or 41% increase over FY26 in the proposed FY27 Capital Budget, funding that will help address some of residents’ top areas of concern including our roads and infrastructure. 

This past winter, the eighth snowiest in Worcester history, tested the municipality, as well as municipalities across the state. While the Department of Public Works (DPW) delivered a strong and reliable performance, it showed a need to invest in equipment, facilities, and staff to help better prepare for future winters. The 2025-2026 winter season also exacerbated existing issues with roadways underlining the need to exceed the funding recommendations in our Pavement Management Plan. Accordingly, the Administration is proposing an increase of $11 million, or 66%, in DPW borrowing over Fiscal Year 2026 (FY26). That money will go toward streets and sidewalks; equipment purchases including snow equipment; and building improvements. Furthermore, DPW’s capacity will be expanded by restructuring schedules to allow for additional hours of operation at the Millbury Street Drop-Off Center.

The municipality is also investing in its Public Safety infrastructure, directing funds to the new South Division Fire Station ($25M) and upgrades to Worcester Police Headquarters ($5M). First responders provide critical life-saving services, and these infrastructure improvements aim to help them better serve the public. The municipality is also making sure that departments remain fully staffed and as such is increasing funding in the operating budget to the Worcester Fire Department to account for the end of the Staffing for Adequate Fire and Emergency Response (SAFER) grant that had supported expanded class sizes at the academy. 

The municipality remains committed to investing in schools with an increase in $10 million to Massachusetts School Building Association (MSBA) projects including the close out costs for the construction of Doherty Memorial High School, the start of the Burncoat Feasibility Study, and the accelerated repair projects at Belmont Street Community School and Rice Square School. 

“I know that these strategic budget and investment decisions will help Worcester continue on its growth trajectory while preparing it to weather any storms that may come,” said City Manager Eric D. Batista.  “This year’s budget is built on a simple but powerful principle: smart investments today create stronger outcomes for our community tomorrow. By focusing on thoughtful planning, responsible spending, and long‑term value, we are ensuring that every dollar contributes to a safer, more resilient, and more efficient city.”

The proposed operational and capital budgets can be found on Informing Worcester.

The budget will next go to City Council for hearings and final approval.

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