Newton City Council Passes $388 Million Budget, Raises School Fees

NEWTON, MA —The City Council approved Mayor Setti Warren’s proposed $388 million spending plan last night, despite the fact that two councilors voted against it. Approximately $219 million of the 2018 spending plan will go to The Newton Public Schools.

"The FY18 budget reflects the work that has been done over the last seven years, which has led to a continued investment in Newton's schools, infrastructure, and public safety," said Warren.

This victory comes ahead of an expected announcement by Warren that he will run for governor this weekend. Warren often cites his budget work in Newton as a major accomplishment.

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When Warren took office in 2010 the city was faced with a structural deficit of more than $40 million by 2013, according to the budget report. There was no emergency fund and the pension trust had lost a significant amount of funds from the 2008 recession when he took office. Now the city has $19 million in “rainy day” funds, which accounts for some 5 percent of the budget.

"The FY18 budget sets aside additional funding for the city's "rainy day" reserve fund, which did not exist in 2009 and now has close to $20 million, further ensuring a strong financial foundation for the future, and outlines plans to address the city's long-term liabilities," Setti said in an emailed statement.

Earlier this year the city received a Triple A bond rating from both Moody’s Investors Services and Standard and Poor’s, giving the city better interest rates in bonds sold and refinanced. Newton is expected to save $16 million as a result over the life of the remaining refinanced bonds.

The majority of the 2018 budget which begins on July 1 will be allotted to the schools to work on renovating five elementary schools throughout the next six years. Earlier this year the TAB noted the schools faced a $2.75 million gap and could face layoffs. The budget also includes the first year of a 10-year, $100 million road paving program with the goal of improving an estimated 40 miles of city roadway each year.

The City Council voted for the budget by a 21-2 vote. Ward 2 Councilor Emily Norton and Ward 3 Councilor at-large James Cote voted against the plan. Ward 2 Councilor at-large Jake Auchincloss was not present at the vote.

Norton said she voted against the budget because the increasing school fees didn't sit well with her.

"In current school budget fee increases in the area of high school athletics, middle school athletics, and bus transportation for grades 6-12 are relied upon to generate an additional $150,327," she wrote to her fellow councilors requesting that the fees not be raised, including 10 bullets on why not to raise the fees.

Her rationale included income inequality as a main reason.

"These activity fees on everything from athletics to music to drama act as a barrier to participation in these activities, particularly for lower income families," she wrote.

Previous budgets:

FY17 Budget projected expenditures was $379 million - of that 55 percent went to education

FY 16 Budget projected expenditures was $362 million - of that 56 percent went to education

FY 15 Budget projected expenditures was $345 million - of that 57 percent went to education

FY 14 Budget projected expenditures was $331 million - of that 57 percent went to education

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Photo City Hall By Jenna Fisher/ Patch Staff

Previous photo attached to this story was by Ashia Ray.