Framingham HR seeks modest FY27 increase as health-insurance costs loom
January 22, 2026 | Framingham City, Middlesex County, Massachusetts
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Human Resources Director Kathy O'Leary told the Framingham City Council Finance Subcommittee on Jan. 22 that the HR division's FY2027 operating budget request is roughly $604,000–$615,000, an increase of about 2.5% over FY2026 driven mainly by step increases and an anticipated 2% cost-of-living adjustment on July 1, 2026.
O'Leary said the HR request assumes modest merit and step increases. She told the committee that major expense drivers beyond salaries include substance testing and professional and technical services, and that some savings will come from filling recent retirees' positions at lower step levels.
On employee health coverage, O'Leary said the city’s total contribution to the Group Insurance Commission is "in the neighborhood" of $45,000,000 and that the GIC is projecting "double digits, 12 to 15%" increases for the coming plan year, though an exact figure had not been announced. "They're projecting, double digits, 12 to 15%," she said. Councilors asked the administration to return with concrete figures once the GIC issues its plan changes next month.
Councilors pressed O'Leary for the employee perspective. She said staff are "very concerned" that pay increases have not kept pace with rising health-care costs and cited utilization trends — more oncology and mental-health services and increased prescription costs — as factors driving premiums and out-of-pocket costs.
O'Leary also outlined plans to fill a vacant veteran services officer post. "We have received 18 applications for the position," she said, and described an interview team including Robert Downing and Don Della Santa. The schedule she provided sets hiring-team criteria next Tuesday, interviews the week of Feb. 9, and presentation of one or two finalists to the mayor the week of Feb. 16 for mayoral approval.
The director identified four outside vendors that support HR work for both city and school employees: Cook and Company (benefit plan support), Guardian Claim Services (workers' compensation third-party administrator), WorkCare Incorporated (occupational nursing), and Unemployment Services Corporation (claims support). O'Leary said Cook and Company's contract expires in June and that procurement will follow standard competitive processes.
Councilors asked HR to provide a standardized spreadsheet with two prior years, the current year, and the proposed FY2027 figures for positions, vacancies, administrative costs and revenues so the committee can compare trends across departments. O'Leary agreed to return with the requested material.
The committee did not take formal action on the HR budget at the meeting; the subcommittee moved on to scheduling and other items.
O'Leary said the HR request assumes modest merit and step increases. She told the committee that major expense drivers beyond salaries include substance testing and professional and technical services, and that some savings will come from filling recent retirees' positions at lower step levels.
On employee health coverage, O'Leary said the city’s total contribution to the Group Insurance Commission is "in the neighborhood" of $45,000,000 and that the GIC is projecting "double digits, 12 to 15%" increases for the coming plan year, though an exact figure had not been announced. "They're projecting, double digits, 12 to 15%," she said. Councilors asked the administration to return with concrete figures once the GIC issues its plan changes next month.
Councilors pressed O'Leary for the employee perspective. She said staff are "very concerned" that pay increases have not kept pace with rising health-care costs and cited utilization trends — more oncology and mental-health services and increased prescription costs — as factors driving premiums and out-of-pocket costs.
O'Leary also outlined plans to fill a vacant veteran services officer post. "We have received 18 applications for the position," she said, and described an interview team including Robert Downing and Don Della Santa. The schedule she provided sets hiring-team criteria next Tuesday, interviews the week of Feb. 9, and presentation of one or two finalists to the mayor the week of Feb. 16 for mayoral approval.
The director identified four outside vendors that support HR work for both city and school employees: Cook and Company (benefit plan support), Guardian Claim Services (workers' compensation third-party administrator), WorkCare Incorporated (occupational nursing), and Unemployment Services Corporation (claims support). O'Leary said Cook and Company's contract expires in June and that procurement will follow standard competitive processes.
Councilors asked HR to provide a standardized spreadsheet with two prior years, the current year, and the proposed FY2027 figures for positions, vacancies, administrative costs and revenues so the committee can compare trends across departments. O'Leary agreed to return with the requested material.
The committee did not take formal action on the HR budget at the meeting; the subcommittee moved on to scheduling and other items.
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