New Bedford Mayor Jon Mitchell delivers 2026 budget address

NEW BEDFORD, Mass. (WLNE) — Mayor Jon Mitchell delivered the 2026 budget address to the New Bedford City Council Wednesday night.

The proposed budget amounts to $561.1 million, with the General Fund taking up the majority of the budget at $500.4 million.

Mitchell labeled the budget a “conservative spending plan,” in which he said he created the budget against a “backdrop of inflation-driven increases, rising fixed costs, increases in mandatory assessments, and low growth in revenue and state non-school aid.”

He said that departmental budgets are not driving the 2026 budget, and that a solution to New Bedford’s budgetary pressures “require a focus on tax base growth, healthcare reform, and securing more meaningful non-school state assistance.” In the General Fund Budget, 11.6% covers public safety services, 12.1% covers government, 11.3% is non-discretionary, and 65% covers education.

He highlighted the local economy; thanking public and private investments, small businesses, large manufacturers, and maritime industries. However, he also mentioned issues such as “growing state aid challenges, inflationary and interest rate pressures, and global and national uncertainty due to geopolitical tensions and international trade disputes.”

Mitchell brought attention to the “deficiencies in the state’s non-school local aid,” which he said impacts the City’s finances and puts the burden on taxpayers. Mitchell said that Unclassified General Government Aid has not kept up with inflation, and that “the City’s cumulative shortfall due to inflation is $187 million.”

Despite the deficiency, he said the New Bedford Police Department is projected to receive an additional $1.4 million in spending. Additionally, funding for the school department is expected to see a $20.5 million increase.

Mitchell also discussed the City’s pension system, which he said is only 54% funded and also places a burden on taxpayers. He added that out of 105 government retirement systems in Massachusetts, “only three are less funded than New Bedford’s.” Although, he said the City of New Bedford is projected to achieve 100% funding by 2035.

He also highlighted health insurance costs, which Mitchell said are projected to rise to 50.4 million, and take up 10.1% of the General Fund.

Mitchell summarized the budget with the following statement:

“The preparation of any budget proposal is always a complex undertaking, and the current proposal has presented its fair share of challenges. Mandated expenses, cost pressures from inflation, an uncertain economic environment – and importantly, insufficient non-school state aid – are all significant considerations this year. But we will meet these challenges by relying on the same cautious approach and the effective partnership between the Administration and the City Council that has served us well in the past.”