Worcester brought in nearly $3.5 million more in new property-tax growth than city officials expected for fiscal 2027, and now the City Council faces a choice over what to do with the extra money: let it sit as unused taxing capacity or steer it toward a fund meant to help pay for a new Burncoat Middle and High School. The decision will also determine whether Worcester adopts one of two very different tax-rate structures for the coming year.
A Bigger-Than-Expected Haul From New Growth
City Manager Eric D. Batista informed the City Council that Worcester had anticipated about $7 million in new property-tax growth for fiscal 2027 but ultimately certified approximately $10.5 million, according to The Worcester Guardian. New growth refers to tax revenue generated by new construction, renovations and property that has newly become taxable. The surplus amounts to exactly $3,502,413 in new property tax growth above the amount anticipated, per the same outlet's reporting.
As MassLive reports, the council will review and discuss two tax options Tuesday. One option would preserve the extra revenue as unused taxing capacity, while the other would place it in a fund intended to help finance the proposed replacement of Burncoat Middle and High School, the Guardian's reporting notes.
Two Tax Rates, Two Very Different Bottom Lines
The numbers diverge sharply depending on which path the council chooses. The first option would produce a property-tax levy of approximately $439.6 million, compared with roughly $443.1 million under the school-fund option, the same account indicates. Under a hypothetical single tax rate — one rate applied equally to residential, commercial, industrial and personal properties — the first option would set a rate of $16.09 per $1,000 of assessed value, versus $16.22 under the second, per the Guardian's figures.
Worcester typically splits its tax rates between residential and commercial, industrial and personal property rather than using a single rate. Under the first option, Chief Financial Officer Timothy McGourthy has outlined a lowest residential rate of $12.77 per $1,000 alongside a commercial, industrial and personal rate of $28.13 per $1,000, according to MassLive. The second option would set those rates at $12.87 and $28.35 per $1,000, respectively. For comparison, Worcester's residential tax rate stood at $13.28 per $1,000 in fiscal year 2026, while the commercial, industrial and personal rate was $29.06 per $1,000, MassLive reports.
That split reflects a decades-long trend in how Worcester distributes its tax burden. The residential share of the city's total levy has grown from roughly half in 1980 to 63% in 2026, while the commercial, industrial and personal property share has fallen to about 37%, the Guardian notes — a shift that has steadily moved more of the tax load onto homeowners even as business rates have dropped.
Burncoat's Price Tag Looms Large
Whichever option the council selects, the administration has proposed committing $7.5 million in previously certified free cash toward the school construction fund regardless of which option councilors pick, according to the Guardian's reporting. Burncoat Middle and High School, located at 179 Burncoat St., houses a high school serving grades 9 through 12 with programming focused on performing and visual arts, along with a middle school serving grades 7 and 8, per MassLive.
School rebuilding has been a stated priority for the city and Mayor Joseph Petty, who vowed during his 2025 re-election campaign to see both schools rebuilt. The Massachusetts School Building Authority approved a feasibility study for Burncoat High School on April 30, 2025, though Worcester Public Schools has cautioned that the feasibility study does not indicate project approval, but is an invitation to explore solutions. The city and the state authority still must determine whether a potential new school would serve grades 9 through 12 only or also add grades 7 and 8.
Cost estimates for the project have varied widely depending on scope. Preliminary figures ranged from $250 million to $270 million for basic repairs up to $685 million to $710 million for renovation and expansion, the Guardian previously reported. Separately, Yahoo News has cited estimates for a new combined Burncoat Middle and High School of $635 million to $640 million, a figure WCVB has also reported, noting the city assumes debt service of $30 million a year once fully borrowed. Under one reported project timeline, construction could begin in May 2029, with teachers and students moving into the completed school in August 2032, according to the Guardian.
What a Big Build Could Mean for City Debt
The administration has projected that a $710 million version of the project could require the city budget to absorb nearly $30 million in additional debt costs by the early 2030s, the Guardian reports. Assuming the Massachusetts School Building Authority ultimately covers roughly half the cost, the administration estimates that renovating or replacing both Burncoat schools would add upward of $25 million annually in debt service, per the same reporting.
That potential new borrowing would come as the city's overall debt has been trending down. Worcester's debt decreased from a reported high of $1 billion as of June 30, 2024, to $981.8 million as of June 30, 2026, an intentional but modest decrease according to the Worcester Statehouse Report. Meanwhile, Worcester's total taxable property valuation has climbed to approximately $27.33 billion, an increase of 7.8% over the previous fiscal year, the Guardian notes.
Under Massachusetts General Laws, Chapter 40, Section 56, a city or town may classify tax rates for the year of certification and the four years following it, with a city council acting together with the mayor's approval, according to the statute published by the Massachusetts Legislature. The council's vote Tuesday will determine not just this year's tax rates, but whether Worcester takes its first concrete step toward bankrolling one of the city's most expensive school projects in recent memory.
