Council approves FY26 budget and a $2 million stabilization transfer for schools

The Lowell City Council adopted the fiscal year 2026 appropriation order Tuesday and approved a separate, one‑time $2 million transfer from the city’s stabilization fund to the Lowell Public Schools to prevent cuts to classroom positions.

Why it matters: Council members said they feared the school department could otherwise cut paraprofessionals and English‑learner tutors; supporters called the transfer an urgent step to protect classroom services while the administration seeks ways to replenish reserves.

After more than an hour of budget discussion, Councilor DeCoteau moved to transfer $2,000,000 from the stabilization fund to the schools; Councilor Gucci seconded. Chief Financial Officer Connor Baldwin explained the fiscal tradeoffs, saying the city has built large reserves and that “the answer…depends” on whether free cash certification and other one‑time revenues will allow the administration to replenish stabilization. Baldwin said a strategy used in prior years is to restore reserves with certified free cash; if free cash is insufficient, he warned, using reserves could affect the city’s credit rating when next selling debt.

Manager Golden asked the council to consider placing replenished funds into manager’s contingency if state revenues changed later in the year; he said the contingency requires council approval before use. A roll‑call vote on the $2 million transfer passed with an affirmative majority recorded by the clerk. Following that action, the council voted to adopt the FY26 appropriation order (total appropriation recorded at the meeting).

Councilors who supported the transfer described it as a short‑term measure to preserve classrooms and give the superintendent and manager time to negotiate longer‑term funding. Some members warned that the move is a one‑time fix: Councilor Jeunesse said, “This will help, but this is a one‑time thing for me,” and urged sustained collaboration between the superintendent and city manager ahead of next year’s budget process.

Formal actions: The council recorded a roll‑call vote adopting the FY26 appropriation order and separately approved the $2,000,000 stabilization transfer to the schools. The motion to transfer funds was seconded and passed; the appropriation order passed on roll call vote later in the meeting.

What’s next: CFO Baldwin said the administration will aim to replenish stabilization with certified free cash when it is available and will report back; he also noted the city will discuss any state budget developments, including charter‑school reimbursement variations, that could change the outlook.

Ending: Council members asked the manager and superintendent to continue monthly coordination and to return with any state or free‑cash developments that affect the plan to restore reserves.