Mayor Bettencourt presents $208 million FY26 budget, warns of insurance, state-aid pressures

Mayor Bettencourt presented a proposed $208,036,797 operating budget for fiscal year 2026 at the finance committee meeting on June 17, saying the plan represents a $10,684,601, or about 10.7%, increase from FY2025 and would require a higher tax levy if revenues do not improve.

The mayor said the increase “reflects a perfect storm of circumstances that is simply beyond our control,” listing dwindling net state aid, the end of ARPA one‑time funds and a double‑digit jump in health insurance costs. “This year’s health insurance increase is 14.19%,” he said, calling that “unprecedented and unsustainable.”

Why it matters: the budget proposal directs most new spending to education and public safety and relies on a combination of higher local receipts, limited reserves and a roughly $10 million increase in the tax levy. If adopted, the administration projects a roughly $450–$500 average residential tax bill increase under the revenue and valuation assumptions used in the presentation.

Key figures and drivers - Total proposed FY26 operating budget: $208,036,797 (up $10,684,601 from FY25). - Education increase in the mayor’s proposal: about $5.4 million. - City‑side…