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Mayor outlines FY26 budget risks: school requests, federal funding uncertainty, free-cash limits and targeted hiring freezes
Summary
Mayor briefed the Finance Subcommittee on fiscal pressures for FY26: large school budget requests, uncertain state and federal aid, potential loss of federal education funds, rising health insurance costs, and options including careful use of free cash, targeted hiring freezes and limited levy increases.
Mayor and administration staff gave the Finance Subcommittee a high-level briefing on the FY26 budget outlook on March 25, flagging several revenue uncertainties and expense pressures that will shape budget choices.
Administration officials said the school department initially proposed an FY26 budget increase of about $18 million; that figure was reduced to roughly $14 million and later to a proposed $12 million increase after school leadership made additional reductions. The mayor told the subcommittee the governors proposed FY26 budget includes roughly $6.5 million more in Chapter 70 school aid for Framingham, but cautioned the House and Senate review could alter that number and timing.
The mayor and finance staff outlined four primary…
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