The gap, driven in part by snow removal, overtime and soaring health care costs, represents about 1% of the city's annual budget, according to the city's chief financial officer.
Boston has a $48.4 million budget deficit that must be addressed this fiscal year which ends in June, city officials said Monday. The gap, driven in part by snow removal, overtime and soaring health care costs, represents about 1% of the city's annual budget, according to Boston Chief Financial Officer Ashley Groffenberger.
For the first time since 2003, city officials may need to dip into reserves to cover the shortfall. Groffenberger did not immediately answer specific questions about layoffs or whether the city plans to cut services to balance the budget. But the city has decided to tighten spending across departments to preserve core services like trash pickup and library hours, Groffenberger wrote in a letter to the city council. “The City has strengthened expenditure controls for the remainder of the Fiscal Year to further offset this projected deficit and is actively implementing additional measures, such as tightly managing all discretionary expenditures and hiring through the final quarter, which begins on April 1,” she wrote in the letter. The city overshot its snow removal budget by $47 million during the snowy, frigid winter. Public safety overtime exceeded the budget by $48 million And fixed costs were $28 million over budget. The city recently moved to limit coverage of GLP-1 weight loss drugs which have driven up healthcare costs, saving the city nearly $11 million, but insurance costs remain a major challenge.Officials said they won't ask voters to override Proposition 2 ½, which limits how much a city or town can increase total property taxes. But they said they are evaluating the potential need for a supplemental budget appropriation. While the city brought in stronger than expected revenue overall, particularly from excise taxes, new money from building permits has fallen short of expectations by a projected $7 million. In terms of new growth, the city banked $78 million, more than the $60 million projected in the budget. That’s down from the 2024 historic high of— a concerning marker given the city's past reliance on growth to cover deficits and expand the budget. The $48.4 million deficit does not include figures from Boston Public Schools, which has its own $53 million budget deficit. The financial trouble isn't limited to the current fiscal year, which ends June 30, Groffenberger said. Revenue growth is expected to remain blunted for fiscal 2027, as health insurance costs continue to rise. And another winter of heavy snow and ice could further stretch the budget. “With fewer resources available to absorb rising costs, targeted reductions and careful prioritization will be necessary as we work to deliver a balanced budget,” Groffenberger said. “It is critical that we budget responsibly in order to mitigate future risks and ensure the long-term fiscal stability of the City.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Boston joins third national 'No Kings' protestThousands of people are expected to crowd downtown Boston for the third 'No Kings' rally, according to organizers, joining what they expect will be millions of demonstrators fanning out across the country.
Read more »
No. 9 Virginia Cavaliers vs Boston College Baseball, Game Two ScorePregame LHP Max Stammel (2-1, 4.97 ERA, 25.1 IP, 12 BB, 22 SO) is on the mound this afternoon and here is how UVA is lining up today: 1. SS Eric Becker 2. CF A
Read more »
Boston College Football Spring Practice Notebook: Day 9The Eagles held their ninth spring practice inside Fish Field House on Saturday morning.
Read more »
Utah Royals cap 'exhausting' 3-match week with 1st win, 2-1 over Boston LegacyKSL BYU and college sports reporter
Read more »
Boston College Baseball Run Rules No. 9 Virginia 17-0, Captures Third ACC Series WinThe win marked the Eagles' ninth in a row.
Read more »
Jayson Tatum, Jaylen Brown, Among Five Boston Celtics on Injury Report vs. CharlotteThere is a lengthy list for the Celtics, who are in a three-game in four-night stretch, and who might feel comfortable resting some guys with a little pad in the standings.
Read more »