The Finance Committee voted to approve the following (see report and watch the meeting video):
- Appropriation of $2,000,000 from Certified Free Cash to cover FY2026 health insurance costs (7–0). The supplemental funding addresses an 11.2% health insurance rate increase recommended by the City’s consultant, based on rising claims data in December through February.
- The City and School budgets were originally based on a 7.8% increase, and the late revision prompted the need for a Free Cash transfer.
- Councilors discussed the use of Free Cash for ongoing expenses. CFO Lemieux explained this situation is an exception, as the City is aware of the new baseline a year in advance.
- Councilors questioned future planning, with CFO Lemieux recommending a permanent increase of $1.3 million for the School budget and $700,000 for the City in FY2027.
- The City is in its second year with BlueCross and remains self-insured. Lemieux noted savings of over $100 million in OPEB liabilities since the switch.
- Additional strategies for controlling costs include education around preventive care and incentivizing lower-cost service providers through co-pay structures.
Chair’s Note: A detailed budget report for this meeting will be posted at a later date at this link: https://www.newtonma.gov/government/city-clerk/city-council/council-standing-committees/finance-committee
Present: Councilors Gentile (Chair), Malakie, Greenberg, Micley, Bixby, Humphrey, and Grossman
Also present: Councilors Oliver, Wright, Block, and Farrell
Absent: Councilor Lipof
