Worcester’s FY13 Budget: Post-Recession Observations

This report offers a number of observations on Worcester’s FY13 municipal budget of $542 million. We conclude that while Worcester’s finances are stable as a result of serious reforms in municipal employee health insurance plans negotiated by the City Manager and the unions and level-funding of local aid because of improved state revenues, the City’s future situation remains uncertain. The huge drop in the value of the housing market on which the City is dependent for property taxes and unsustainable municipal retiree pension and health insurance benefits leave Worcester in a precarious condition.