Boston Mayor Wu Proposes $4.9B Budget with 2% Increase

City faces financial crunch as spending growth hits 17-year low

Apr. 7, 2026 at 2:21am

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A cinematic painting of Boston City Hall, the city's government headquarters, rendered in warm tones and deep shadows, conceptually representing the financial constraints facing the city.Boston City Hall stands as a symbol of the city's financial challenges, as Mayor Wu proposes a budget with the lowest spending growth in 17 years.Boston Today

Boston Mayor Michelle Wu has proposed a $4.9 billion budget for fiscal year 2027, representing a 2% increase over last year's spending. The mayor says this is the lowest growth in 17 years as the city continues to tighten its belt amid ongoing financial challenges.

Why it matters

Boston, like many cities, is grappling with a financial crunch exacerbated by the pandemic. The mayor's budget proposal reflects the difficult decisions city leaders must make to balance priorities and rein in costs during this period of economic uncertainty.

The details

The $4.9 billion budget proposal marks a 2% increase over the previous year's spending, the smallest growth in 17 years. Mayor Wu cited the need to cut back amid the city's ongoing financial challenges, which have been compounded by the economic impacts of the COVID-19 pandemic.

  • The proposed budget is for fiscal year 2027, which begins on July 1, 2026.

The players

Michelle Wu

The current mayor of Boston, Massachusetts.

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What they’re saying

“This 2% increase represents the lowest growth in 17 years as we continue to make difficult decisions to balance priorities and rein in costs during this period of economic uncertainty.”

— Michelle Wu, Mayor of Boston

What’s next

The proposed budget will now go through the city council approval process before being finalized.

The takeaway

Boston's budget constraints reflect the broader financial challenges facing cities across the country as they navigate the economic impacts of the pandemic. Mayor Wu's budget proposal underscores the need for careful prioritization and cost-cutting measures to maintain essential services while addressing the city's fiscal realities.