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City of
Cambridge

What's Driving the FY27 Budget Growth

Thursday, September 3, 2026
" The operating budget reflects the City's commitment to providing high-quality services while planning responsibly for the future. "
A group of college students at graduation wearing black caps with red tassels.
Education
The FY27 Operating Budget is 4.1 percent larger than last year's budget. While that represents an increase of approximately $41 million, it is well below Cambridge's average budget growth over both the past five and ten years. 

Much of the increase reflects rising costs to maintain the high-quality services residents expect, while continuing to invest in the priorities that strengthen the community. 

Investing in Education 

Approximately $13.3 million supports Cambridge Public Schools, including staff salaries and benefits. This funding helps ensure schools continue providing high-quality education, student services, and learning opportunities for Cambridge children. 

Supporting the City's Workforce 

Like employers across the country, Cambridge continues to experience rising personnel costs. The FY27 Budget includes approximately $21 million in additional funding for salaries, employee benefits, and a 2.5 percent cost-of-living adjustment for City employees. These investments help the City recruit and retain the skilled workforce needed to deliver essential and impactful public services. 

Maintaining Critical Infrastructure 

The budget also reflects the increasing cost of maintaining the infrastructure that supports everyday life. 

Debt service associated with long-term capital investments is increasing by $4.7 million, while charges from the Massachusetts Water Resources Authority (MWRA) are increasing by approximately $1.2 million. These investments help maintain reliable water and sewer systems and support continued improvements to public facilities and infrastructure. 

Meeting Community Needs 

The FY27 Budget also includes targeted investments that respond to evolving community priorities, including: 

  • $1.3 million for water treatment materials  
  • $1 million to expand municipal housing vouchers  
  • $1 million for special event support  
  • $500,000 to support snow operations  
  • Additional funding for employee training and tuition reimbursement  
  • Support for crisis intervention and medical services  
  • Additional meal programs for older adults  
  • Routine contractual and operational cost increases across City departments  

Every budget reflects a balance between rising costs and community priorities. The FY27 Budget continues to invest in education, infrastructure, public services, and programs that support residents while maintaining the City's long-standing commitment to responsible financial management. 

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