Boston faces budget deficit of nearly $50 million

"Chief Financial Officer Ashley Groffenberger stated that 'external cost pressures' are largely to blame for the $48.4 million budget deficit, citing snow removal, police overtime, and employee health insurance as major factors."

"The $48.4 million deficit is approximately one percent of Boston's $4.8 billion operating budget, with officials considering tapping into $1.2 billion in reserve funds to address the shortfall."

"Mayor Michelle Wu has requested department leaders to propose budgets for fiscal year 2027 that are two percent below their current budgets, as part of efforts to manage the city's financial challenges."

"Boston Public Schools are also facing a projected $53 million budget deficit, leading to a partial hiring freeze and a recently approved $1.7 billion budget for the next school year."

Boston is confronting a $48.4 million budget deficit for the current fiscal year, attributed to external cost pressures such as snow removal, police overtime, and health insurance. The Wu administration is implementing hiring delays and spending freezes to address the deficit. Chief Financial Officer Ashley Groffenberger detailed the situation to the City Council, indicating that the deficit represents about one percent of the city's $4.8 billion budget. The city has $1.2 billion in reserves but aims to close the gap through existing measures.

Read at Boston.com