GREENFIELD — As city departments begin to submit their fiscal year 2027 budgets to Mayor Ginny Desorgher, an expected 19% jump in health insurance costs prompted her to implement a discretionary spending freeze.
The discretionary spending notice that was sent to department heads was first announced at City Council’s February meeting. Discussing the reasons behind her decision to slice overages in the upcoming budget, Desorgher said the city will also refrain from hiring any new employees in the immediate future. She noted that, given the city’s extensive debt, not borrowing any more funds will be a priority this budget season.
“This year, we are seeing a slowdown in state and federal funding, along with projected general economic cooldown. When you combine that with a third consecutive year of double-digit health insurance hikes and a sharp across-the-board increase in the cost of goods and services, this freeze became necessary,” Desorgher told city councilors. “My primary goal is to stay within our operating budget and to minimize borrowing. Greenfield’s outstanding debt is significant and is higher than many of our neighbors and peer communities. Due to these factors, our bond rating is expected to go down this year. Ultimately, this spending freeze ensures you can maintain all critical government functions without overextending ourselves.”
Desorgher added that as federal and state funds shrink, and signs show the “broader economy is slowing down,” Greenfield’s financial road ahead will be challenging to navigate and the city will need to “tighten its belt.”
The spending freeze, Finance Director Stephen Nembirkow wrote in his email to department heads on Feb. 9, was not to “hinder [departments’] core and essential operations,” but to strengthen the city financially amid uncertain economics in the months and years ahead. The Greenfield Recorder obtained the notice to department heads through a public records request.
Nembirkow also clarified in his email that the discretionary spending freeze does not apply to essential expenses such as utilities, insurance, salaries or debt service.
“Discretionary spending includes expenses that can be reduced, delayed or eliminated this fiscal year. For example, discretionary spending includes but is not limited to general office supplies, training, travel, etc.,” Nembirkow wrote. “The goal of this spending freeze is not to hinder your core and essential operations, but to limit non-essential spending, slow cash outflow and strengthen our financial position in anticipation of reductions in local, state and federal funding.”
Guidance from Desorgher’s Communications Director Jonathon Weber, also obtained through a public records request, discusses how to respond to media or constituents’ questions about the spending freeze. In the statement, the Mayor’s Office notes that all requests to fill open positions must be approved by the mayor.
“It is highly likely that staffing reductions will be necessary, and this approval process will help ensure the highest level of prioritized savings,” Weber wrote. “Staff have no comment on whether specific positions will be filled.”