Wu floats $4.9 billion budget amid 'challenging' times, soaring health costs and less federal funding

Key Points:

• Boston Mayor Michelle Wu proposed a $4.9 billion budget for fiscal year 2027, reflecting a modest 2% increase amid rising health care costs and decreased federal funding, marking the lowest budget growth since 2010.
• A major budget pressure is a 20% health insurance rate hike, driven in part by costly GLP-1 weight loss drugs, leading the city to impose limits on such medications to control expenses.
• The budget includes targeted reductions across departments, except for Boston Public Schools, which will receive a 5.4% increase despite planned staff cuts and a continued 10-to-1 student-teacher ratio.
• No layoffs are planned citywide, but a hiring freeze is in effect, and discretionary program funding, including support for re-entry, block parties, food access, and senior services, will face cuts to manage the shortfall.
• Critics cite Wu’s policies on affordable housing and developer relations as factors contributing to fiscal challenges, while city councilors express concerns about transparency and call for audits amid a growing budget deficit exceeding $100 million.