Worcester City Manager Proposes First $1 Billion Budget

WORCESTER, MA — City Manager Eric D. Batista on Friday announced the City of Worcester’s proposed Fiscal Year 2027 operating and capital budgets.

The proposed plan marks a significant milestone for the municipality, representing Worcester’s first $1 billion operating budget. The increase is driven largely by sustained growth in state aid through the Student Opportunity Act, rising property values, and continued private investment across the city.

This year’s budget is centered on the theme “Funding the Future: Smart Spending, Stronger Outcomes," the city said.

The theme reflects years of fiscally responsible decision-making that have positioned Worcester to navigate current economic challenges while continuing to meet residents’ immediate needs. The city’s strong financial standing, supported by stable bond ratings from three agencies and an excess tax levy increase to $25.8 million, allows for continued investment in both the workforce and critical infrastructure.

Key Highlights of the FY27 Budget

Support for Employees: Recognizing the contributions of municipal employees, unrepresented staff will receive a 2% cost-of-living adjustment (COLA).

Strategic Workforce Investments: While no net new positions are proposed due to ongoing financial constraints, the administration has reallocated funding from vacant roles to address priority needs. To support local economic growth and streamline permitting, the budget includes:

• A new plumbing and gas fitting inspector
• A new wiring and electrical inspector
• An additional position in the Business Development Division within the Executive Office of Economic Development to support small businesses

Major Capital Investment: The proposed FY27 Capital Budget totals a $46 million increase — a 41% rise over FY26 — aimed at addressing top resident concerns, particularly roads and infrastructure.

Public Works and Infrastructure Improvements: Following one of the snowiest winters in Worcester’s history, the city is prioritizing investments in equipment, facilities, and operations. The proposal includes:

• An $11 million (66%) increase in Department of Public Works (DPW) borrowing
• Funding for road and sidewalk repairs
• Investment in snow and maintenance equipment
• Facility upgrades
• Expanded hours at the Millbury Street Drop-Off Center through operational restructuring

Public Safety Enhancements: The budget invests in critical public safety infrastructure, including:

• $25 million for the new South Division Fire Station
• $5 million in upgrades to Worcester Police Headquarters

Additionally, funding for the Worcester Fire Department is increased to offset the expiration of the federal SAFER grant, ensuring staffing levels remain strong.

Continued Investment in Schools: The city remains committed to education, proposing a $10 million increase for Massachusetts School Building Authority (MSBA) projects. This includes:

• Closeout costs for Doherty Memorial High School
• The start of the Burncoat feasibility study
• Accelerated repairs 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 operating and capital budgets are available on Informing Worcester. The budget will now move to the City Council for review, hearings, and final approval.

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