Mayor Mitchell proposes $561 million FY26 budget, cites state aid shortfall and rising pension and health costs

Mayor John Burnett Mitchell submitted the City of New Bedford's proposed fiscal year 2026 spending plan to the City Council and residents, outlining a $561,000,000 total budget and a $500,400,000 general fund while warning that state aid shortfalls, pension payments and rising employee health costs limit local options.

"I am pleased to submit tonight for your consideration the fiscal year 20 26 proposed budget for the city of New Bedford," Mitchell said, emphasizing the plan sustains services without “unduly burdening taxpayers.”

The mayor told the council that New Bedford's current local economy shows strength — the unemployment rate is roughly 5%, manufacturers and maritime businesses are expanding, the Zeiterion Performing Arts Center and the New Bedford Whaling Museum are undergoing expansions, and Vineyard Wind is supporting local hospitality — but those positives are offset by long-term fiscal constraints.

Mitchell said the city faces a persistent shortfall in unrestricted state local aid. He described the gap this year as about $14,000,000 compared with where state aid…