New Haven, CT — Mayor Justin Elicker has released a $703.7 million proposed budget for Fiscal Year 2025-26, a 3.6 percent increase from the prior year. The plan preserves city services, sustains public safety investments, and responds to economic volatility, while accounting for potential federal funding freezes.
“At a time of tremendous uncertainty, confusion, and chaos coming from Washington, D.C. with threats of federal funding freezes in the current budget year and the potential for draconian cuts in the coming year, we’re committed to continuing to chart a different course in New Haven,” Elicker said.
The proposal includes a $60 million Capital Budget and a $62.6 million Special Revenue Funds budget, funding 1,427 full-time municipal positions and sustaining core city functions.
Elicker added, “We will have a local government that is professional, predictable, and reliable and a city budget that is responsible, provides uninterrupted services to residents, supports our most vulnerable residents, treats our city employees with dignity, respect, and gratitude for the work they do, and meets our financial obligations as a city.”
Property taxes and revenue strategy
According to the city government, the budget projects $347.3 million in property tax revenue, reflecting a 2.28 percent increase over last year. The proposed mill rate will rise by 0.9 mills, bringing it to 39.40 mills for real estate and personal property, while the motor vehicle rate remains at 32.46 mills.
Despite revenue growth, personal property tax collections have plummeted from $27 million to $16.1 million, while motor vehicle tax revenues are expected to increase by $12.8 million.
The administration cites state aid as a key funding source, estimating $273.7 million in contributions from Hartford.
The mayor’s office notes that “the administration will monitor state budget negotiations closely,” emphasizing that unforeseen revenue shortfalls could force mid-year adjustments.
Public safety investments
Public safety is still at the budget top priority, with $105.3 million allocated to police and fire services.
The spending plan funds the new police contract, intended to retain officers, recruit new personnel, and stabilize department ranks.
To support operations, the police department will receive $2 million for overtime, while the fire department is budgeted for $400,000 in overtime expenses.
The administration proposes 13 new full-time positions across seven city departments, including the Office of Building Inspection & Enforcement, Community Resilience Department, Engineering Department, Economic Development Administration, Finance Department, Parks Department, and Transportation, Traffic, & Parking Department. These new roles carry a combined cost of $1 million, offset in part by $402,000 in projected revenue.
Elicker stressed the importance of maintaining city operations.
“People want and deserve a government that provides peace of mind and that they know they can rely on to deliver the day-to-day services that they need to go about their lives,” the mayor said.
Education and capital Investments
The Board of Education remains the largest budget recipient, receiving $213.2 million in funding.
The plan directs $15 million in capital funds to school building and facility improvements and earmarks $1.5 million in American Rescue Plan funds to continue the New Haven Tutoring Initiative.
The program provides afterschool and summer tutoring in math and reading for struggling students.
The administration maintains that education remains a central city priority, even as economic uncertainties loom.
Debt service and fixed Costs
Debt obligations is a major budgetary factor, with $67.7 million allocated for debt service.
Employee benefits are projected at $107.7 million, and pension obligations total $93 million.
Elicker’s administration touts five consecutive years of balanced budgets, with a $50 million reserve fund and bond rating upgrades from independent financial agencies. The city remains committed to fiscal oversight while addressing unavoidable expenses.
Public review
The Board of Alders will review the budget, holding two public hearings before final adoption.
“The Board may increase or decrease individual appropriations and revenue estimates,” the proposal states. “But it cannot reduce any amount proposed by the mayor for debt payments.”
Under city charter guidelines, the Board of Alders must approve the final budget by Monday, June 2.
The mayor may veto specific line items, though the board can override vetoes with a two-thirds majority vote. If no action is taken, the proposed budget automatically takes effect.
To encourage public engagement, Elicker will host two budget town halls where residents can ask questions and provide feedback. The first will take place on Tuesday, March 18, at 6 p.m., followed by a second on Wednesday, March 26, at 6 p.m..
The full FY 2025-26 budget proposal is available online at newhavenct.gov/budget.
