Chelsea Budget 2027: $272.4M Proposal Strains Resources

City Manager Fidel Maltez proposed a $272.4 million budget for fiscal year 2027, with $116.1 million for city operations and $156.2 million for Chelsea Public Schools. The budget runs July 1, 2026 through June 30, 2027.

Fixed costs are climbing faster than revenue growth allowed under Proposition 2½, the state tax cap. Health insurance expenses jumped $1.05 million this year. Regional school costs rose from $1.4 million in fiscal 2024 to $3.2 million as Chelsea covers its share of the new Northeast Metro Regional Vocational High School. Charter school costs increased $2.6 million.

The school budget increases 3.55% despite enrollment dropping nearly 350 students over the past year. The city will provide $4 million above the state-mandated minimum and draw an additional $4.5 million from reserves.

City expenditures rise 4.80%, with 3.88% driven by non-negotiable costs. Maltez renegotiated the health insurance contract to reduce costs while preserving employee benefits, left some positions unfilled, and approved three new firefighter hires.

The City Council will hold public budget hearings May 18, 19, and 20. The council has 45 days to finalize the budget and can reduce spending but cannot increase it without Maltez's approval.

The full budget is available at www.chelseama.gov/financedocs and in Room 302 of City Hall, 500 Broadway. Contact the City Manager's office at [email protected] or 617-466-4100.