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Mayor warns structural deficit persists after override defeat; council demands answers on $1.6M school reporting error
Summary
Mayor Gary Christenson briefed the council after voters narrowly defeated a property-tax override and outlined continuing fiscal pressures. Councilors pressed for details about a $1.6 million net-school-spending reporting error, requested audits and committee reviews, and called for transparent follow-up from the administration.
Mayor Gary Christenson appeared before the Malden City Council to update members after voters narrowly rejected a proposed property-tax override intended to stabilize city finances. "The community has spoken and I respect the outcome," Christenson said, while emphasizing that the city's underlying structural deficit remains and that several budget variables remain "moving targets."
The mayor told the council the city had not anticipated a reduction of "more than $5 million in state education aid" for 2027 and that increased Northeast Voke enrollment would require a larger contribution. He also said the city discovered a reporting error in the fiscal year 2025 year-end report that understated school healthcare costs and that staff are reviewing internal controls. "The overall structural deficit remains the same," Christenson said.
Councilors immediately pressed for specifics. Councilor O'Malley asked when the miscalculation was first identified; Councilor Winslow and others sought details about which staff and controls were involved and how the mistake passed prior reviews. Councilor McDonald characterized the issue as a reporting error, not an accounting error, but said it still affects public trust and must be addressed through committee oversight.
Public commenters amplified the demand for transparency. Muhammad Abuataha urged the council to provide a clear plan and answers for residents who opposed the override because of current cost burdens. The clerk read a written submission from Brian DeLacey (Malden News Network) containing 16 questions about when the $1.6 million figure was verified, who saw it before it went on the ballot, and whether corrected journal entries and auditor notifications have been made.
Councilors agreed to pursue several follow-ups: the finance committee will scope a detailed review of the error and the budget timeline; the council noted it has requested a DLS financial review that includes Malden Public Schools; and members said they will ask for documentation showing when the error was discovered and who verified the numbers. Several councilors warned that even with the error corrected the city will likely face multi-million-dollar shortfalls and difficult personnel and program decisions.
Next steps: councilors said the finance committee will convene next week to begin detailed questioning of staff and receipt of documentation. The mayor's office and school officials were asked to provide written and on-the-record answers where possible. The council did not take a policy vote on the budget at this meeting.
