Newton Mayor Presents First Edition Of FY27 Budget

NEWTON, MA — Mayor Marc Laredo presented his first operating budget to the City Council for Fiscal Year 2027 Monday night.

The $578 million budget features a substantial increase for the public school district compared to the previous year as well as reinforced funding of the pension system for city employees.

“Our budget is more than a series of numbers. It is a statement of values coupled with sound fiscal practices to ensure that we are spending the taxpayers’ money carefully and wisely,” Laredo said. “We focused on the basics in this budget: excellent schools, outstanding public safety, and dependable city services coupled with strategic improvements in technology, older adult services, economic development, and arts and culture.”

$314.5 million is allocated for Newton Public Schools, which is approximately 55 percent of the entire budget amount. The 7 percent increase from FY26 will primarily fund a new mathematics curriculum for middle school students.

The pension payout plan includes delaying the city’s payoff due date from the year 2032 to 2035, which was approved by the Retirement Board. In exchange, each retiree’s pension that is eligible for a yearly cost-of-living increase go from $15,000 to $18,000. Massachusetts State Law mandates that all pension obligations be fully funded by 2040.

“We quickly convened a team of City Councilors, School Committee members, members of the public with significant finance experience, and members of my Administration to review potential opportunities,” Laredo said. “They arrived at the unanimous recommendation that the city should issue a pension obligation bond to pay off all or most of our pension obligation now and allow us to smooth out payments over a longer period, which thereby frees up funds.”

The City Council voted unanimously Monday night to issue the bond. According to CFO Maureen Lemieux, delaying the pension deadline adds an additional $5 million in available funds to the budget this year.

Part of the municipal portion of the budget includes three feasibility studies for potential construction projects of a new police station, renovation of Newton South High School, and a combination of the Ward and Underwood elementary schools. Laredo said work on all the spaces is long overdue.

“Police Headquarters is close to 100 years old and does not meet the needs of modern day policing, Newton South needs a new science area and has long-standing problems, such as a roof that needs replacement, and Ward and Underwood Schools are the two oldest school buildings in the city,” Laredo said.

He added that if Ward and Underwood are not ultimately combined, then both buildings will receive their own renovations.

The City Council is now expected to vote on the budget at a later date.

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