An additional $22M in state revenue from the 2026 state legislative session enables city to close the New Haven Public Schools’ projected budget gap, provide a more moderate property tax increase, and further support youth and vulnerable residents: Mayor. (Ellyn Santiago/Patch)
NEW HAVEN, CT — In response to additional funds allocated by the state and Yale University to the city, Mayor Justin Elicker submitted a proposed amendment to his proposed Fiscal Year 2026-27 budget.
The technical amendment to the mayor’s proposed $733 million General Fund budget was presented to the Board of Alders Finance Committee Monday.
New Haven is projected to receive an additional $22 million in revenue from the state's FY 2027 budget adjustment bill. This includes $12.4 million from the Mashantucket Pequot Mohegan Fund, $2 million in municipal grants-in-aid funding, and $7.6 million in supplemental education funding, according to a statement released by Elicker.
Elicker noted his gratitude to the city's state delegation and, in particular, Senator Martin Looney for "advocating to secure this funding."
Elicker said investing an additional $13.9 million into the city's schools will "build on the significant local investment we have made in recent years and to completely close the projected New Haven Public Schools budget deficit for next fiscal year."
"The additional funds will also allow us to provide more support for vulnerable residents and our youth," he said. "Finally, it will allow us to put forward a budget with a more moderate 1.95 percent tax increase that is lower than inflation."
Elicker's distribution of funds proposals:
Education Funding for New Haven Public Schools | $13,900,000 | Mayor Elicker is proposing to close NHPS’ projected budget deficit for next school year with an additional $13.9million. This $13.9 million allocation is drawn from the $7.6 million in new state education funding and an additional $6.3 million in new state funding for the city. These new dollars are on top of Mayor Elicker’s previously proposed $5 million increase for NHPS in the city budget. Mayor Elicker is also proposing that an additional $2 million be put into the fund balance to address the New Haven Public Schools’ anticipated budget deficit for the Fiscal Year 2025-2026 budget.
Lowering the Property Tax Increase to 1.95% | $1.9 million | Mayor Elicker is proposing to lower the proposed property tax increase for New Haven residents to 0.77 mills or 1.95% percent, which would bring the city’s mill rate from 39.4 to 40.17. This is achieved by allocating $1.9 million in new state funding and $5 million in new funding from Yale University, as part of its new commitment and increased voluntary payment to the city. Prior to this additional revenue, a 1.58 mill rate (4.01%) increase was originally proposed.
Emergency Food Aid | $350,000 | Mayor Elicker is proposing to allocate $350,000 in new funds for the Coordinated Food Access Network (CFAN) to support emergency food aid and food pantries.
Youth@Work| $350,000| Mayor Elicker is proposing to allocate $350,000 in new funds for the city’s Youth@Work program to provide more summer jobs for Elm City youth and young adults.
Strong School Redevelopment Project | $250,000 | Mayor Elicker is proposing to allocate $250,000 to help close the funding gap for the multi-use redevelopment of the former Horace H. Strong School, which is slated to bring 58 new affordable housing units and new arts and culture community space to the Fair Haven neighborhood.
Facilities and Vehicle Fleet Needs and Maintenance | $900,000 | Mayor Elicker is proposing to allocate an additional $500,000 for municipal facilities’ needs, maintenance, and repairs; $250,000 for municipal vehicle and apparatus needs, maintenance, and repairs; and $150,000 for fire hydrant repairs and replacements.
FY27 Health Insurance & Self-Insurance | $2,000,000 | Given increasing costs related to health care and liability, Mayor Elicker is proposing to allocate an additional $2 million toward health care and self-insurance.
Digitization Initiatives| $400,000 | Mayor Elicker is proposing to allocate $400,000 to support ongoing digitization initiatives to convert additional municipal processes from paper to digital forms and record keeping.
Elicker’s proposed FY 2026-2027 budget and subsequent budget amendment is subject to review and consideration by the Board of Alders.
The BOA Finance Committee has been holding a series of budget workshops, public hearings, and deliberations in March, April, and May.
Per the City Charter, a final budget must be approved by the Board of Alders and signed into law by Mayor Elicker by the first Monday in June, which is June 1st.