Mayor Ruais Proposes FY2026 Budget Under Tax Cap, Prioritizes Core Services and Fiscal Restraint

MANCHESTER, NH – Mayor Jay Ruais presented his proposed city budget for Fiscal Year 2026 on Thursday evening, outlining a $200.6 million plan that comes in 2.33% below the city’s tax cap. Framed as a budget rooted in restraint and pragmatism, the proposal emphasizes essential services while avoiding major increases in spending or staffing.

“This budget meets the needs of our city while protecting taxpayers,” Ruais told the Board of Mayor and Aldermen during a special budget address. “Budgets are about making choices, reaching compromise and finding balance.”

The FY26 proposal includes nearly $1.5 million in savings and rejects more than $1 million in departmental spending requests. Most departments will be level-funded, with the exception of the Manchester Police Department, which is slated for a $1.175 million increase. No new city-funded positions are proposed.

Focus on Core Services and Financial Discipline

Public safety remains a central focus of the budget. Together, the police, fire, and public works departments make up approximately 80% of the city’s operational spending. The administration argues that targeted increases to these departments are necessary to maintain public safety and service expectations.

“We must continue to supply critical city services,” Ruais said. “We can accomplish that while living within our means.”

The fire department stands to benefit from a $3.7 million federal SAFER Grant, allowing the city to hire 12 firefighters. To prepare for the eventual expiration of the grant, the budget sets aside $200,000 this year to begin building a reserve. An additional $100,000 is allocated for lifesaving equipment.

The budget also includes $7 million for citywide road and infrastructure improvements—up from $5.3 million last year—as well as $750,000 for park maintenance and upgrades.

Holding the Line on New Spending

Ruais’s proposal reflects a cautious approach to new initiatives, with most increases stemming from contractual or legal obligations. These include $7 million to bring city employee wages up to market rate, $400,000 for healthcare cost increases, and $300,000 for welfare services mandated by state law.

City officials say the budget avoids long-term fiscal commitments that could strain future budgets, particularly by declining to add any new full-time positions outside of those covered by grants.

Education Funding Sees Record Support

The Manchester School District is set to receive a $2 million increase, bringing total city funding to $236.5 million—described by Ruais as the highest level ever. While the budget reduces the district’s initial funding request by $9.5 million, city leaders say the final amount reflects both financial realities and the need to invest in public education.

Ruais pointed out that since the current Board took office, total city funding for schools has increased by $9.5 million, even as budget requests were trimmed by $13.7 million.

Affordable Housing and Community Services

The budget sets aside $1.16 million in federal HOME funds to support construction of 125 affordable housing units on the Pearl Street lot. Additional investments through the Community Development Block Grant and other federal programs will support homelessness services, senior meals, addiction recovery, and child advocacy programs.

A separate $100,000 allocation is proposed for downtown lighting improvements, part of an effort to enhance safety and make the city’s entertainment and restaurant districts more welcoming.

Measured Optimism

Throughout the presentation, Ruais struck a tone of cautious optimism, highlighting recent improvements in areas like public safety and overdose reduction, while acknowledging ongoing challenges in housing and homelessness.

“Budgets are about what we can manage and control,” he said. “This is a balanced approach that puts Manchester in a stronger position moving forward.”

The proposed budget now moves to the Board of Mayor and Aldermen for review and potential amendments before final approval later this spring.