Lexington Boards Approve Balanced FY27 Budget With 3.9 Percent Increase

LEXINGTON -- January 28, 2026, Lexington's joint budget summit produced a balanced fiscal year 2027 plan with 3.9 percent increases for schools and municipal departments. Finance Director Carolyn Kosnoff told the combined Select Board, Appropriation Committee, and School Committee session that the general fund grows 2.6 percent overall and the total capital program is recommended at $33 million, with $20 million from the general fund. A Group Insurance Commission health insurance renewal dropping from a projected 15 percent to 9 percent freed roughly $1.5 million and allowed the operating budget to be balanced without any draw on free cash for recurring costs. Superintendent Dr. Julie Hackett pushed back, saying even the 3.9 percent allocation leaves the district 42 FTEs below the approved fiscal year 2026 budget, with another 20 to 30 reductions needed this spring, and would drain circuit breaker reserves from 87 percent to roughly 50 percent funded. Town Manager Steve Bartha cautioned that using one-time funds for operating costs "immediately starts next year in a hole of that exact size." The Select Board is scheduled to vote the budget at its February 9 meeting.