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Date: 5/24/2022
HOLYOKE – Following Holyoke Mayor Joshua Garcia’s state of the city address, his fiscal year 2023 (FY23) proposed budget was released to the City Council and the public marking the start of this year’s budgeting process.
Garcia proposed a $153.85 million budget for FY23 and for the first time in nearly a decade according to the mayor, leaves a surplus for the city of $779,876. Around $70 million of the proposal represents the city side of the budget with the remainder allocated for the schools. The mayor anticipates a net gain in school aid from the state’s Student Opportunity Act but noted that these estimates were conservative to mitigate any potential coronavirus pandemic impacts and other potential uncertainties.
During their May 16 meeting, the City Council began the first of what will be a series of budget hearings with department heads in the goal of working towards the approval of the budget. The City Council has 45 days from receiving the proposal to approve it.
“Our city’s economy is roaring back in a way we haven’t seen in some time,” Garcia said during his state of the city address. “The budget I’m presenting tonight reflects that reality, avoiding short-sighted decisions and laying the foundation for our long-term fiscal health.”
Within the proposed budget, it is illustrated that the property tax levy has climbed by over $1.4 million, as did state aid, local receipts and other funding sources, representing a 5.9 percent total increase. Proposition 2 ½ caps the amount municipalities may collect in taxes and fees.
Major operating budgets look to receive gains in money as the public schools notably are set for an additional $7.055 million. Employee benefits also rose from just under $25 million to $26.2 million. The most significant increases from the proposed budget come from “uncontrollable” or required expenditures, including insurance, retirement and the school budget.
“It is a moving target, every day that passes we learn more about our revenue potential. We have peace of mind moving forward on estimates on receipts and putting forward a conservative budget,” Garcia said during the May 16 hearing on the proposed budget. “I know it’s our first go around and there will be supplemental versions but nevertheless I’m happy to share with you as you go forward in this process, in this budget there’s no service reductions and we are looking to restore jobs cut in the past.”
Garcia stressed “plugging the gap” in departing department heads and supervisors in order to maximize the city’s revenue collection and fixing quality of life issues for workers in Holyoke. He added that he wants to see competitive salaries to preserve the city’s professional ranks.
The mayor also is looking for support from the City Council to use Free Cash for one-time investments. With the city posting a positive free cash balance for the first time in years, there is a balance of $2.4 million available from the Massachusetts Department of Revenue. Proposed investments of this money will include the Marijuana Impact Fee Stabilization, capital stabilization, special projects and more.
“During FY23, I will be working with the MA Division of Local Services in collaboration with department heads and the City Council to establish a Municipal Finance Management Handbook that establishes clear policies and guidelines for how we manage and invest local resources including how we invest in free cash, stabilization and capital projects,” Garcia wrote in his description of the proposed budget.
You can find more of the mayors writing on the budget, as well as the FY23 proposed budget on the city’s website.