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Springfield mayor unveils FY26 budget outlook, asks departments for 3% cuts amid $24M gap
Summary
Mayor Sarno and city finance leaders told department heads that the FY26 city budget faces a roughly $24 million gap and federal funding uncertainty, and asked departments to propose 3% cuts focused on OTPS and vacant positions while protecting direct resident services.
Mayor Sarno opened Springfield City’s FY26 budget hearings by telling department and cabinet heads the administration is preparing for federal funding uncertainty and a tighter fiscal year. He said the city receives about $55,000,000 in federal funding and the school system about $75,000,000—figures he said could be at risk as federal priorities change. "When you look upon that, that's a hundred and $30,000,000 that possibly could come off of a nearly $1,000,000,000 budget," the mayor said.
Chief Administrative and Financial Officer Kathy Bunnell told departments the FY26 requested budgets on the table are level-service requests that do not yet reflect the mayor's requested 3% reduction. "At this point based on their requests and our, and their conservative revenue numbers, we have a $24,000,000 gap that we're having to deal with," Bunnell said. She said the mayor asked that the 3% reductions be concentrated in OTPS (other than personal services) and in vacant or grant-funded positions where possible so that direct services are less affected.
Bunnell and Deputy CAFO Lindsay Hackett and Budget Director Chris Frazier framed planning for a leaner FY27 as well. The mayor emphasized maintaining strong credit: "We still continue to hold the highest bond ratings in the city's history," he said, and cited a $71,000,000 reserve on the city side. He asked departments to identify one ‘‘wish‑list’’ item they would restore if funding permits, and to show how each proposed 3% cut would affect street-level services.
Department heads and council members raised priorities and constraints. Councilor Zaida Govan urged sensitivity to property‑tax burdens on residents while supporting the 3% approach; Ward 6 Councilor Victor Davila said he would scrutinize plowing and DPW costs and look for ways to support improved winter service without shifting unsustainable costs to residents. Several department presenters said some line items—software contracts, utilities, and certain maintenance contracts—are effectively fixed or contractually required and not feasible targets for cuts without service impacts.
The administration said it plans to preserve bargaining‑unit contractual increases and to continue conservative revenue assumptions. Bunnell noted continued volatility in grant expectations and federal policy: "I never wanna say sure at this point now that we think we are getting for next year. And again, that I know everyone knows that's changing every day." The FY26 hearings will continue with department‑level detail and follow-up on how each 3% reduction would affect operations.
No formal votes were taken at the hearing; the mayor and finance team are asking for department responses to the requested 3% reductions before finalizing the proposed budget to send to the city council.
