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Comptroller presents FY27 budget, flags $261,000 spending-cap exposure; board weighs SAFER hires and leasing fleet
Summary
The comptroller outlined a proposed $253.9 million FY27 budget with recommended city reductions, CIP plans and reserve uses, noting the proposal is roughly $261,000 over the statutory spending cap. Board members discussed using contingency for firefighter hires contingent on a SAFER grant and favored leasing to replace public works fleet without a large up-front cost.
Comptroller Diane presented the Board of Finance with a citywide FY27 budget proposal on April 1 and warned the recommended package is approximately $261,000 over Connecticut's inflation-adjusted statutory spending cap for next year.
Diane said total proposed general fund expenditures would be $253,910,500 and that staff had recommended $1,457,000 in reductions on the city side and a $10,575,000 reduction to the Board of Education's original request. "This year the statutory spending cap is 2.64% for FY27," Diane said during the presentation. "We are right now $261,000 over the cap with this proposed budget." (Diane)
She explained the cap's penalty mechanism: any amount above the cap can reduce certain state grants roughly 50¢ on the dollar, and the cap calculation adjusts for changes in debt service and special-education excess costs. The comptroller outlined reserve uses to smooth the year: $500,000 from the mill-rate stabilization fund, $500,000 from the health-insurance reserve (split $275,000 to the Board of Education and $225,000 to the city), and $484,000 from the debt-service reserve.
Board members then debated public-safety staffing and contingency planning. One member urged hiring 16 firefighters to meet safety standards; others suggested a phased approach tied to a federal SAFER grant. As a compromise, the board discussed setting aside $500,000 of contingency toward firefighters contingent on SAFER grant approval, which would cover a majority of early-year costs should the grant materialize.
The comptroller also proposed leasing as a way to accelerate replacement of public-works fleet (dump trucks, snowplows) without a large one-time budget hit. "Leasing would get us the opportunity to get 3 to 5 vehicles up and running over the next year... and it definitely looks feasible for the city to do that without increasing this budget," Diane said.
Why it matters: The spending-cap exposure could reduce state grant revenues and complicate funding decisions for schools, public safety and capital projects. Decisions about using reserves or contingency directly affect the city's fiscal cushion and borrowing plans.
Next steps: Board members agreed to schedule at least one additional workshop to drill down on reductions, contingency uses and procurement efficiencies (including a review of P-card spending). The comptroller reiterated tentative adoption dates for April 28 (Board of Finance) and May 18 (joint meeting).
Ending: The meeting concluded without formal votes on the FY27 budget; board members left open options including additional cuts, contingency allocations and lease financing for fleet replacement.
