MAYOR ELICKER PRESENTS PROPOSED CITY BUDGET FOR FISCAL YEAR 2026-2027

$733 million budget maintains essential city services and programs, with limited new strategic investments in education, parks, climate, seniors and supporting vulnerable residents.

[NEW HAVEN, CT] - Today at City Hall, Mayor Justin Elicker presented his proposed budget for the City of New Haven for Fiscal Year 2026-27. The $733.3 million budget represents an increase of 4.4 percent, or $31 million, from the previous year's budget. Complementing the General Fund budget, Mayor Elicker also submitted a Special Revenue Funds budget of $48.5 million, which includes local, state and federal grants.

"Our city is growing, but we also face financial realities of a federal government that is less supportive of and cutting funds to local governments and a state education funding formula that has not kept up with local educational needs and inflation. As a result, we must step up as a city to fill some of these financial gaps and be measured and strategic when it comes to new investments," said Mayor Elicker. "This is a budget that will continue to provide our residents with the critical city services and programs they need and deserve. It's a budget that covers our rising fixed costs and avoids budget gimmicks that pass hidden financial burdens onto the next generation. It's a budget that protects the city's long-term financial health and continues to chip away at paying down past I.O.U.'s when our city lived beyond its means. Finally, it's a budget that's anchored in our values and seeks to promote a high quality of life for our residents."

The city's continued growth - including new housing and development that grew the taxable Grand List by 2.5 percent - has helped add new vitality to our city and generated new revenue to maintain a lower tax burden than would otherwise be the case. However, as the mayor noted, the city faces several financial pressures, including the winding down of federal grant funds and other federal cuts that require us to transition several previously federally funded initiatives to the city's budget. In addition, the state's education formula still has not increased the per student foundation level contribution since 2013, as educational needs and associated costs continue to rise.

Given these realities, similar to the city's current budget, the mayor's is proposing a FY26-27 budget that largely maintains the current level of city services across departments and covers rising fixed costs, while making a select number of strategic investments towards important city priorities. These new investments include the following:

• Education: Investing an additional $5 million for New Haven Public Schools to help fund essential educational services for students and a new teachers' contract that provides more competitive salaries, improved healthcare benefits, and other workplace improvements to help attract, retain and support city educators. The budget also includes additional $1 million for the continuation of the New Haven Tutoring Initiative to support struggling students who need a helping hand in reading and math by providing free afterschool and summer tutoring.

• Parks and Climate: Supporting the hiring of three new parks positions, including two to staff the new Long Wharf Park and Waterfront (similar to how the city staffs Lighthouse Point Park) and one field technician to help us better care for and maintain our athletic facilities for our youth. In addition, we are prioritizing work on climate change by transitioning our Office of Climate and Sustainability from federal funds to city funds.

• Seniors: Supporting the hiring of a new Elderly Services program manager for the Hill neighborhood, where we will be opening the new Trowbridge Youth and Community Center this year that will also house a senior center.

• Vulnerable residents: Supporting the continuation of Elm City C.O.M.P.A.S.S. program and the Foxon Boulevard Emergency Shelter that care for individuals experiencing homelessness, substance use disorders and chronic mental health challenges.

The mayor is also proposing two new positions within the city's Department of Finance, including a deputy controller and an additional internal auditor to help ensure and improve proper oversight of the city's budget, revenue, expenditures and internal controls.

In total, the mayor is proposing thirteen new positions. There are 1,450 full-time municipal employee positions in the city's current budget.

To meet the city's existing financial obligations and these priorities, the proposed budget includes a proposed 1.58 mill rate (4.01 percent) increase, which would bring the city's mill rate from 39.4 to 40.98.

"We work hard to balance the services residents demand with our ability to pay for them - and aim to keep any tax increase at the rate of inflation. To this end, our tax rate remains lower than many other Connecticut cities, including those in our area and of similar size such as Hamden, Hartford and Waterbury," added Mayor Elicker. "In addition, the city is also in ongoing negotiations with Yale University regarding their voluntary contribution and I hope to have more to report soon on an increased commitment that allows us to reduce the proposed mill rate and tax burden on residents and help pay for essential city services."

The proposed FY 2026-27 budget builds on six consecutive years of balanced budgets by the Elicker Administration, which has resulted in a $55.2 million in budget reserve funds and bond rating upgrades by independent financial rating agencies.

The Mayor's FY 2026-2027 proposed budget is being submitted today to the New Haven Board of Alders for review and consideration, and the Finance Committee will be holding a series of budget workshops, public hearings, and deliberations in March, April, and May, which will be posted on the Board of Alders webpage at newhavenct.gov/alders. These meetings can be attended in-person and will also be streamed on the Board of Alders YouTube page at youtube.com/@boardofalders8363.

In the coming weeks, Mayor Elicker will also be holding budget town halls for residents to learn more about the budget, ask questions, and provide input and feedback on the proposals with the times, dates and locations to be announced soon.

Per the City Charter, a final budget must be approved by the Board of Alders by the first Monday in June, which is June 1st

Mayor Elicker concluded, "I look forward to engaging with residents and the Board of Alders as we work together to finalize our city's budget and chart a path forward of that supports our continued growth, funds our priorities, reflects our values and helps uplift more of our residents and communities to create a city where all New Haveners can thrive."

Mayor Elicker's entire FY 2026-2027 proposed budget will be posted on the city's website at newhavenct.gov/budget.

Press Contact:

Lenny Speiller | 203-725-4249 ; [email protected]