Boston City Council Ways and Means Hearing on FY27 Operating Budget - April 14, 2026
Boston City Council Ways and Means Hearing on FY27 Operating Budget - April 14, 2026
The Boston City Council Committee on Ways and Means, chaired by Councillor Ben Weber, held a hearing on April 14, 2026, at 10:05 AM to review the FY27 operating budget (Docket #0733-0740). The hearing marked the start of the city’s budget review process, with presentations from Chief Financial Officer Ashley Graffenberger and Budget Director Jim Williamson. The $4.9 billion recommended budget shows 2.1% growth, the lowest in recent years, driven by rising health insurance and public education costs. Councilors raised concerns about cuts to discretionary grants, youth jobs, and community services, while the administration emphasized preserving core city services without layoffs.
Public Comments & Testimony
- Gregory Maynard, co-founder and executive director of the Boston Policy Institute, requested standalone public hearings on revenue forecasting and health care costs, citing a $100 million current-year deficit and a four-billion-dollar drop in commercial assessed values.
- Laurie Radwin, a resident of Rosendale, expressed concern about the displacement of small businesses due to zoning changes and called for accounting of lost business tax revenue in budget projections.
Discussion Items
- Budget Presentation: CFO Graffenberger and Director Williamson presented the FY27 operating budget of $4.9 billion, with revenues growing 2.1% ($99.4 million). Property tax accounts for 73.1% of revenue, while state aid is 10.9%. Expenditure growth is driven by a $97.3 million increase in health insurance costs and $50 million in public education costs (including BPS and charter schools). City department budgets decreased by 1.3% ($20.4 million) through vacancy reductions, salary savings, and cuts to discretionary grant programs ($12 million).
- Revenue Constraints: Property tax growth is limited by Proposition 2.5, with new growth assumed at $40 million. Interest income is projected at $40 million, a 50% drop from FY26 due to expected federal rate cuts. Permit and license revenues continue to decline.
- Expenditure Reductions: To balance the budget, the city reduced pension contributions by $25 million using a revised glide path (still fully funding by 2028) and saved $13 million from debt refunding. The budget eliminates 57 long-term vacant positions and assumes salary savings equivalent to 785 positions. No layoffs of filled city positions are planned, but BPS will see position eliminations.
- Discretionary Grants and Youth Jobs: The $12 million in grant cuts affect community-based organizations, including the Office of Black Male Advancement. Year-round youth jobs funding was reduced by $5 million; summer jobs remain uncapped for all BPS students. The administration noted efforts to supplement youth jobs with private philanthropy.
- Health Insurance and GLP-1 Costs: Health insurance costs rose sharply due to increased GLP-1 medication usage (almost $48 million in calendar 2025). A new utilization management agreement with unions aims to moderate growth. The deficit in FY26 was partly attributed to underestimated health insurance expenses.
- Debt Service Policy: The city updated its debt repayment policy to allow slightly slower principal retirement (no less than 30% retired in 5 years, 55% in 10 years), which does not produce immediate savings but offers future flexibility.
- Councilor Concerns: Multiple councilors questioned the process for determining cuts, requested lists of affected grant recipients and eliminated positions, and expressed worry about the impact on services for youth, seniors, and public safety. Councillor Murphy and others highlighted calls from constituents losing jobs and chess club funding. Councillor Flynn raised concerns about Proposition 2.5 reform, the Mass and Cass issue, and a request for an audit of BPS central office. Councillor Culpepper pressed for details on who makes budget cut decisions and asked about external financial advisors. Councillor Louie Jen advocated for more aggressive debt service flexibility to free up funds.
Key Outcomes
- No votes were taken; the hearing was informational.
- The administration committed to providing the following to the council: (1) a list of all grant programs and organizations whose funding was reduced or eliminated, (2) a breakdown of long-term vacant positions removed by department, (3) details on the percentage cuts by department, (4) information on the debt repayment policy change, (5) a list of external investment advisors used by the Treasury Department, and (6) a multi-year budget forecast.
- Further departmental hearings will be held throughout the spring, including a capital budget hearing later on April 14.
- The next public testimony hearings are scheduled for April 28 and May 26, 2026.
Meeting Transcript
Morning. Um for the record, my name is Ben Weber. I'm the District Six City Councilor and the chair of the Boston City Council on Ways and Means. Today is April 14th, two thousand twenty-six. The exact time is ten. Oh five. This hearing is being recorded. It is also being live streamed at Boston.gov slash city dash council dash TV and broadcast on Xfinity Channel Eight, RCN Channel Eighty Two, and Fios Channel Nine Sixty Four. The city's budget review process, uh, which uh officially starts now, although we've had several pre-budget hearings and a listening session, uh actually two uh here will encompass a series of public hearings uh beginning now and running through June. We strongly encourage residents to take a moment to engage with in this process by giving testimony on the record. Uh you can do so you can you can do this in several ways. Uh first you can attend one of our hearings and give public testimony. You will we will take public testimony at the end of each departmental hearing uh and also at two hearings dedicated to public testimony. The full hearing schedule can be found on our website at Boston.gov slash council-budget. Our scheduled hearings dedicated uh to public testimony are in person here in City Hall on Tuesday, April 28th at 6 p.m. And again here in City Hall in person on Thursday, May 26th at 6 p.m. You can give testimony in person here in the chamber or virtually via Zoom at all of our hearings for in-person testimony. Please come to the chamber and sign up uh on the sheet near the entrance for virtual testimony. You can sign up using our online form on our council budget review website, or by emailing the committee at ccc.wm at Boston.gov, or by emailing uh Kurishma Choan at uh Karishma, that's K-A-R-I-S-H-A.C-H-O-U-H-A-N at Boston.gov. Um when you are called to testify, please state your name and affiliation, residents, and uh limit your comments uh to a few minutes. We'll have two minutes uh for each uh person giving public testimony and just make sure you're prepared for that time limit so you can have all your concerns heard by us. Email your written testimony uh if you have it to the committee at ccc.wm at Boston.gov. Um you can also submit a two-minute video of your testimony through the form on our website. Uh for more information on the city council budget process and how to testify, please visit the city council's budget website at Boston.gov slash council-budget. In-person public testimony will be taken at the beginning of this hearing following the panelists' presentation. Individuals will be called in the order in which they were signed up, um, and we'll have two minutes to testify. If you wish to sign up for public testimony, you have not done so already, uh, please uh either sign in on the sheet that's uh over there now, or uh uh email uh our staff liaison at Kurish Machoan, it's K-R-I-S-H-M-A.CHO UHAN at Boston.gov for the zoom link, and your name will be added to the list. Today's hearing is on docket numbers 0733 to 0740, an overview of the FY27 operating budget. This is one in a series of hearings we'll be conducting on the FY fiscal year 27 budget. These matters were sponsored by uh Mayor Michelle Wu and were referred to the committee on April 8th, 2026. Uh today I'm joined by my colleagues in order of arrival, Councillor Murphy, Council President Braden, and Councilor Flynn. We've received a uh letter of absence from Councillor Coletta Zapada. Uh I you know, I so we're we're because we have a lot of work ahead of us and a lot of hearings, we're not going to be doing opening statements at these hearings, but because today is the first, and because there's only three of you, if anyone you know wants uh one minute each to say anything, uh Councilor Murphy. Thank you, Chair. Could could you explain? Are you going to me already? Uh well, yeah, I so but my my microphone. Yeah, well, oh uh sorry. Yeah. Um thank you. Could you just clarify before we start? See although this is the beginning of many, what you meant by there will not be opening statements. Yeah, so uh sometimes in some hearings, every counselor gets an opening statement before we before we go to qu go to the panel and go to questions. Uh, because we're gonna be spending a lot of time. Uh I I you you can give an opening statement as part of your questions, but we're not gonna have that part. I think uh councilor Orrell did that last year, and I think it was effective in making the hearings more efficient. But because today is the first one. If you want to say something. I always want to say something. Thank you again for being here.
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