City Administrator Fidel Malte9s outlines $272 million FY2027 budget, warns of school funding gap after 350-student decline

City Administrator Fidel Malte9s laid out Chelsea's proposed fiscal year 2027 budget in a community address, saying the plan totals approximately $272,000,000 and that the city and schools face immediate funding pressures.

"El presupuesto total para el año fiscal 2027 es aproximadamente 272000000 de dólares," Malte9s said, framing the presentation around rising costs and their local impacts. He said roughly $116,000,000 of the proposal is for city operations and about $156,000,000 is for the Chelsea public schools.

Malte9s identified employee health insurance as a major cost driver, saying the city must pay more than $1,000,000 more this year than last to cover medical insurance for city and school employees and their families. To avoid immediate cuts to staff pay or benefits, he said the administration will use reserves to cover the increase but cautioned that reserves are not a sustainable long-term solution.

He also pointed to school-related obligations that have risen sharply: an additional $1.8 million this year for the new Northeast Regional Vocational High School in Wakefield and a roughly $2.5 million increase in charter school costs compared with two years ago. "Dar seguro me9dico a nuestros dedicados empleados nos sube el presupuesto me1s de $1 million en un solo af1o," he said.

Enrollment losses are central to the school funding problem. Malte9s said Chelsea public schools lost about 350 students in the last year. He attributed the decline to enforcement of federal immigration laws, which he said created fear in immigrant communities and prompted families to leave: "Las familias ... los padres de nif1os que asistedan a las salas de Chelsea han huido," he said. He added that some families left the city, others left the state and some left the country.

Massachusetts funds local schools based on enrollment under Chapter 70, Malte9s said, and with lower enrollment the city expects to receive only minimum state aid. He described a resulting shortfall in the school budget, but numeric phrasing in the address about the precise deficit was unclear (see clarifying details).

To limit the immediate damage, Malte9s said the city will contribute an additional $4,000,000 to the schools and draw roughly $4.0e280934.5 million from reserves to support the general fund. "Por ello, este af1o, la ciudad de Chelsea intervendre1, aportando una contribucif3n adicional de $4,000,000 de df3lares para nuestras escuelas pfablicas," he said.

Malte9s defended a planned increase in fire-department staffing that raises total city positions and enables a new unit called "engine four," saying the investment in public safety accounts for the majority of the city's staffing increase this year.

He also described a proposed revision to the city's zoning ordinance'the first substantive changes since 2019'as a strategy to spur development, grow the tax base and generate revenue to support schools and municipal services. The administration plans to publish an annual report to track progress and said it has held community sessions to solicit resident input.

The budget process will now move to the Chelsea City Council. Malte9s listed department presentation dates to the council on May 18, May 19 and May 20, saying those public hearings are opportunities for residents to comment before the council votes on a final budget.

Malte9s closed by acknowledging the year's challenges and urging community resilience: "Este es un af1o difedcil... Pero, bfsaben que9? En cada de estas ocasiones, Chelsea ha salido adelante."