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Mayor transmits FY27 budget with $10M structural deficit; council refers appropriation to finance committee
Summary
The mayor transmitted a FY27 appropriation order citing a nearly $10 million structural deficit, about $4.5 million in proposed reductions and $5.2 million in reserve use; the council voted to refer the appropriation to the finance committee under the 45-day review process.
The Malden City Council received the mayor's FY27 annual appropriation order, and a transmittal memo read into the record warned of a nearly $10 million structural deficit and proposed roughly $4,500,000 in budget reductions coupled with $5,200,000 in reserves to soften impacts on core services.
"I submit for your consideration the proposed fiscal year 2027 budget," the transmittal read, noting that earlier voters rejected an operational override and the city faces a structural shortfall. The memo said reductions touch many departments, including city hall, public works, the library, police and fire, and several boards and commissions; it said positions vacated by retirements were eliminated where possible.
Councilor McDonald, finance committee chair, outlined the review process: state law gives the council 45 days to review and approve the appropriation; an overview meeting with the mayor's finance team is planned for next week, departmental reviews will follow, a public hearing is tentatively scheduled for June 2, and the committee aims for final votes around June 9. McDonald said the CFO/controller will provide account-level Excel detail (prior actuals and proposed amounts) to aid council analysis.
On a motion by Councilor McDonald, seconded by Councilor Cica, the council referred the appropriation to the finance committee. Councilors emphasized painful choices lie ahead and urged public engagement in upcoming finance meetings and hearings.
Key numerical items in the transmittal: a roughly $10,000,000 structural deficit, approximately $4,500,000 in cuts proposed in the initial plan, and $5,200,000 in reserves planned for use; the memo cautioned that drawing reserves beyond a prudent annual range would harm long-term fiscal stability.
