Boston Mayor Michelle Wu proposed a $4.8 billion metropolis price range that she says might must be adjusted down the road relying on the end result of potential federal funding cuts, a few of which town is already difficult in court docket.
The mayor’s proposed fiscal yr 2026 price range, filed Monday with the Metropolis Council, represents a roughly 4.4% improve over the prior yr’s spending plan of about $4.6 billion.
Development for the present fiscal yr’s price range was roughly 8%, and the extra restrained spending is solely intentional, Wu mentioned in a letter to the Metropolis Council.
“With over $300 million of federal funding supporting critical city services each year, and with nationwide economic impacts from federal tariffs and other federal actions already taking a toll on consumer confidence, tourism from international visitors, higher education and healthcare, critical research and innovation, and the broader economy, we must exercise caution to ensure stability for our communities,” Wu wrote.
Such an strategy, the mayor’s letter states, is aimed toward “preparing for worst-case scenarios while refraining from preemptive disruption of city services.”
A part of town’s belt-tightening amid the federal “uncertainty” consists of eliminating a whole bunch of long-term vacant positions, thereby lowering total headcount within the FY26 price range, Wu wrote.
The Metropolis Council has put that quantity at 2,000, however the mayor, who mentioned she plans to remove all long-term vacancies, has not but confirmed the physique’s determine. The price range additionally will increase wage financial savings “where appropriate,” and reduces discretionary non-personnel spending, the mayor’s letter states.
Requested by the Herald whether or not town has acquired any indication of whether or not federal funds can be diminished this yr, Wu mentioned she hadn’t, however mentioned there have been some preliminary actions taken which might be being challenged by town in court docket.
Wu mentioned there was some unspent COVID emergency aid grant funding for the Boston Public Colleges that was canceled, together with a improvement pipeline grant, though the courts have paused the latter cancellation.
“Some of this is just working its way through the court system,” Wu instructed the Herald. “So we don’t have either the full picture of what may happen with these various federal funding streams, or whether attempts to rescind them will be legal and actually allowed to happen by the courts.
“Because of all that uncertainty, we have to plan for the worst-case scenario and preserve our ability to manage uncertainty, even as we continue to maintain the level of city services that we know our residents and businesses rely on,” she mentioned.
Wu mentioned federal funding uncertainty implies that the price range can be topic to vary after it’s permitted by the Metropolis Council, which by its personal authority, has the power to reject, amend or approve the mayor’s spending plan.
“It is looking to be a very chaotic next four years of this presidential administration, and so we will always act on the best information we have,” Wu mentioned. “The budget will be finalized and approved as a balanced budget as of June 30, but we will continue to manage that budget every single day for the next fiscal year.”
In her letter, she mentioned her administration would “adapt this budget proposal if needed as the scale of economic uncertainties and consequences of federal policies continue to emerge.”
Whereas the mayor, who has tangled with the Trump administration over immigration and different insurance policies, mentioned her focus was on assembling a “lean” price range, sure metropolis departments did see will increase of their total proposed spending.
The police and fireplace departments would see slight will increase of 0.5% and 1.3% to carry their respective budgets to $477.3 million and $310.6 million; the general public works division price range would improve by 9.2% to $131 million and the Boston Public Health Fee would develop by 3% to $144.3 million, in response to an evaluation by the Boston Municipal Analysis Bureau.
Wu, in her letter, cited further recruitment courses for the police and fireplace cadet applications for public security hikes, and a deal with work with homelessness, opioid dependancy and senior programming for the Health Fee.
Her price range message additionally highlights a 6.6% spending improve for the streets cupboard, which is essentially associated to new trash assortment contracts, and a 7.7% hike for the data and expertise cupboard, for 311 constituent name system upgrades.
The most important a part of town’s spending plan is the Boston Public Colleges price range, which was permitted by the Faculty Committee at $1.58 billion, which represented a 3.5% or $53 million improve.
The Council votes on the BPS price range, which doesn’t but embody the prices of the tentative new contract reached with the Boston Lecturers Union, individually.
The FY26 price range additionally consists of investments within the Elections Division “to help implement necessary operational reforms and improvements,” Wu’s letter states, as a part of state oversight that was initiated after a chaotic presidential election that led to widespread poll shortages in Boston.
Budgets have been diminished for the mayor’s workplace of housing and property administration because of a previous one-time funding, some departments within the fairness and inclusion cupboard because of centralizing cupboard capabilities, and town’s new planning division and workplace of workforce improvement due a extra correct evaluation of their wants as new metropolis departments, Wu’s letter states.
If the mayor’s tax shift invoice have been to cross the state Legislature, sure elements like tax rebates for owners and will increase within the senior house owner exemption and private property exemption for small companies, can be paid out of town price range, Wu mentioned.
“The way that it’s structured, it would come from reserves, but given economic volatility, of course we will have to assess the larger economic needs of the city in that moment,” Wu instructed the Herald.
The mayor additionally proposed a $4.5 billion five-year capital plan for FY26-30.
