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Council trims some nonprofit funding after debate; Custom House cut reduced, HRC reduced
Summary
During budget amendments the council debated and then adopted reductions in funding for several city‑funded nonprofits; a large initial proposed cut to the Custom House Museum was reduced after members sought a compromise and a reporting requirement was added for funded agencies.
Council considered multiple amendments affecting city funding to nonprofit and quasi‑public agencies during the fiscal 2025‑26 budget debate and adopted an amended package that reduced some grants while preserving others.
Councilman McLaughlin proposed reducing general wage and benefits funding to nonprofit partners to match city employee levels; that motion initially proposed reductions totaling roughly $128,128 but was amended in committee and by later votes. After debate and follow‑up amendments, the council adopted an amendment that left the Custom House Museum’s city funding at a lower reduction than originally proposed and reduced Human Relations Commission (HRC) funding by $28,400; an earlier proposed $44,000 reduction to the senior center failed.
Council members who opposed deep cuts said organizations such as the Custom House Museum and senior center provide important community services and that funding changes should be paced and tied to measurable fundraising or performance targets. Councilman Zacharias said he would review goals and fundraising activity in future budget cycles; the council asked funded agencies to provide regular reports to the finance committee going forward.
Outcome and next steps: the council adopted the package of amendments as amended (votes on specific amendments varied; the final Lovato amendment as amended passed 10‑1‑1). Council asked that city‑funded agencies report regularly to the finance committee; any future changes to funding will be considered in subsequent budget cycles.
Discussion vs decision: council exercised its budget authority to reduce some grant amounts for FY25‑26; reductions were targeted and in some cases pulled back after amendments and debate. No legally binding new grant contracts were executed at the meeting; contract terms will be handled by the finance office and in future approvals.
