New Canaan Board Of Finance Approves $185.2M Budget For FY 2026-2027

NEW CANAAN, CT — The Board of Finance has approved a total expenditure budget of $185.2 million for fiscal year 2027, representing an increase of 2.3 percent over fiscal year 2026's budget of $181.0 million, town officials announced Friday.

According to a news release provided by the town, the total increase amounts to $4.2 million, with 79.3 percent of this allocated for increases in Board of Education expenditures budget.

The Board of Finance's budget recommendation will now go to the Town Council, which may accept, reduce or reject the board's budget recommendation, according to the town.

The Town Council will hear from departments and, after an official notice, plans to hold a public hearing on the budget on April 2, town officials said.

The Town Council is scheduled to approve a final budget on April 14.

See also: New Canaan Selectmen Approve $186.9M Budget For FY 2026-2027: Town

According to the town, the total expenditure budget includes Board of Education operating expenses of $99.2 million (up 4.0 percent) and Board of Education transfers to the Health Internal Service Fund expenses of $18.0 million (down 2.5 percent) for a combined Board of Education expense budget of $117.2 (up 3.0 percent).

In addition to these Board of Education expenses, the budget also includes $5.9 million of other Board of Education expenses paid by the town, according to the town.

In total, the Board of Finance approved $123.1 million for the Board of Education for fiscal year 2027, town officials said.

According to town officials, town department operational expenses were $35.2 million (up 2.0 percent).

Other budget items include a combined town and Board of Education debt service of $18.5 million (up 0.8 percent) and tax-funded capital projects of $0.5 million (up 0.8 percent), town officials said.

To fund this budget, the amount to be raised from taxation is $169.7 million (up 3.4 percent), according to the town.

"Working collaboratively with each department, we again met our primary financial goals we established at the beginning of our budget review," Board of Finance Chairman Todd Lavieri said in a news release. "We reduced the amount raised by taxation by $3.0 million, we cut the capital expense by $4.0 million, and we reduced the taxpayer supported capital (not bonded), by $1.2 million. That helped us push the town-wide expense increase down to 2.3 percent. The amount raised by taxation is currently projected to increase 3.4 percent to cover increased expenses and a decrease in non-taxation revenues. The Board of Education expense increased 3 percent year over year. Town operating expenses excluding the Board of Education are up 1.2 percent. Non-property tax revenues are budgeted to decrease by 10 percent, or approximately $1M. Currently the mill rate is budgeted to increase 2.6 percent to 17.12. The final mill rate will be set in June once the Board of Finance receives the budget back from the Town Council."

Lavieri also noted the departments "did a very good job" overall, with many coming in with increases below the board's guidelines.

"As we have discussed over the past few years, our town financials remain in very good shape," Lavieri said. "Our top priority continues to be maintaining the top school district in the state of Connecticut that we have built. A high quality, high performing school district has been a focus for this town for many years. The entire school budget represents 67 percent of our total budget. Our pensions remain funded, reflecting the responsibility we have to ensure that our commitments are met, and that the 'can is not kicked' down the road penalizing current and future residents and taxpayers. We have a Aaa rating by Moody's. In summary we strive as a board and as a town to deliver value and results for every dollar we collect and manage."

The Board of Finance's budget takes into account the town assessor's reported 2025 Grand List, before the Board of Assessment appeals, increase of 0.8 percent to $10.02 billion from the 2024 net Grand List, after the Board of Assessment appeals, of $9.94 billion, according to the town.

Detailed information on the Board of Finance's recommended operating and capital budgets for FY 2026-27 can be found in the budget document section of the town website.