Boston City Council Ways & Means Committee Hearing on FY26 Supplemental Budget (May 27, 2026)
Boston City Council Ways & Means Committee Hearing on FY26 Supplemental Budget (May 27, 2026)
On May 27, 2026, the Boston City Council Ways and Means Committee, chaired by Councillor Ben Weber (District 6), held a hearing to discuss two supplemental appropriations: Docket #030 (47.1 million dollars for snow and winter management) and Docket #0131 (22.8 million dollars for Boston Public Schools health insurance and utilities). The hearing featured a presentation from Budget Director Jim Williamson and Chief Financial Officer Ashley Graffenberger, followed by questions from councillors and public testimony. The administration requested council approval to draw these funds from the city's free cash balance to close projected deficits by June 30, 2026.
Discussion Items
- Snow and Winter Management Supplemental (47.1 million dollars): Williamson explained that the city experienced 61.6 inches of snow during the winter of 2025–2026, the coldest and snowiest in 11 years. Two major storms—January 25–26 (23.2 inches) and Winter Storm Hernando in early March (17.1 inches)—required extensive contractor services, staff overtime, equipment repair, snow melting (via rented melters), and other costs. The city responded to 20 distinct winter weather events. Unlike 2015 (110 inches, 20 million dollar deficit partially offset by 3 million in FEMA reimbursement), the city was not eligible for FEMA assistance this year because Suffolk County did not meet the threshold. The administration characterized the snow spending as an extraordinary, one-time event, noting that the last five of six years ended with a surplus of 1–2 million dollars in the snow budget.
- Free Cash Usage and Fiscal Policy: Williamson and Graffenberger detailed that the combined 70 million dollar supplemental, plus the annual 40 million dollar draw for OPEB (retiree health care) carried forward from FY26 into FY27, results in a total draw of 150 million dollars from the city's certified free cash balance of 601 million dollars (about 24%). They cited guidance from the state Division of Local Services that free cash should be used for one-time, non-recurring expenses. Councillor Culpepper questioned whether snow removal is truly non-recurring, arguing that it recurs every few years. Graffenberger acknowledged snow is a recurring expense but emphasized that the budget covers typical years (22 million dollars); the 47.1 million dollar overage is extraordinary and thus appropriate for free cash. The city's overall unassigned fund balance stands at 1.2 billion dollars (about 24% of expenses), exceeding both the city's own policy (15%) and Moody's recommended level (25%) for triple-A rated municipalities.
- Health Insurance Overspending and Forecasting: Gregory Maynard, co-founder of the Boston Policy Institute, testified that the root cause of the FY26 deficit is overspending on health insurance, not snow. He pointed to a letter from the mayor acknowledging a spike in health insurance costs. Maynard criticized the city's forecasting process and noted that BPS added 16 million dollars to its health insurance budget on March 25, 2026, just before adopting its FY27 budget. He also noted that the council did not hold a budget hearing on health insurance costs or the People Operations cabinet. Councillor Flynn pressed for month-to-month health insurance spending data to track cost increases in real time, stating that his request for such data had not been fulfilled. Graffenberger confirmed that the city is negotiating a successor contract with public employee unions for FY28 and that a utilization management agreement yielded savings in the current contract.
- Revolving Fund and Snow Reserve Exploration: Chair Weber asked whether a revolving fund or special stabilization fund could smooth out snow costs. Graffenberger confirmed the mayor has expressed interest in creating a snow reserve, and her team is exploring the legal and operational requirements. Councillor Fitzgerald asked about replenishing free cash reserves, with Graffenberger noting that replenishment depends on year-end surpluses (e.g., 192 million in FY23, driven by high interest income) and that a multi-year buildup is likely given declining interest rates and limited new growth.
- Comparison to FY2015 and Contractor Payments: Councillors Fitzgerald and Flynn compared the current snow costs to FY2015 when 110 inches of snow resulted in a 20 million dollar overage (17 million after FEMA). Williamson attributed the higher cost in FY2026 to a decade of cost growth in labor, equipment, and contractor rates, fewer snow storage locations (requiring rented melters), and a reduced internal workforce due to challenges hiring CDL-licensed drivers. Flynn asked about unpaid contractor bills; Williamson estimated that a small number of contractors (in the low millions) have not yet been paid pending contract amendments. He agreed to provide a list.
- BPS Supplemental and Coordination: The hearing acknowledged that a separate hearing on Docket #0131 (22.8 million dollars for BPS health insurance and utilities) would occur later that day. Councillor Flynn advocated for merging BPS health insurance with the city system to achieve economies of scale, but Graffenberger stated that both entities already use the same health plans; the budget is simply split, so merging would not yield savings.
- Retiree COLA Increase: Councillor Flynn raised the retirees' request for a COLA increase (3 percent) and an increase in the COLA base. Graffenberger noted that raising the COLA base by 3,000 dollars would increase the pension system's unfunded liability by 90 million dollars, requiring a 45 million dollar increase in the operating budget for FY27 and FY28 to stay on schedule for full funding by 2028. She confirmed the city supported 3% COLAs in recent years and a 5% voluntary increase in 2023, but expressed concern about the fiscal impact of a base increase.
Public Comments & Testimony
- Gregory Maynard (Boston Policy Institute): Stated that the real driver of the FY26 deficit is health insurance overspending, not snow. He criticized the accuracy of the city's health insurance forecasting, noting that the mayor's letter identified a spike in health insurance costs as a current-year issue. He urged the council to investigate why FY26 health insurance spending was underestimated and why the FY27 BPS budget required a last-minute 16 million dollar addition on March 25. He also noted the council did not hold a FY27 budget hearing on health insurance or the People Operations cabinet.
Key Outcomes
- No votes were taken during the hearing; it was a discussion session. The committee is expected to consider formal approval of the two supplemental appropriations before the end of the fiscal year (June 30, 2026).
- The administration committed to providing: (1) a breakdown of snow spending categories (contractors, overtime, equipment, snow melters) requested by Councillor Culpepper; (2) month-to-month health insurance spending data for FY26 requested by Councillor Flynn; (3) a list of unpaid contractor snow bills requested by Councillor Flynn; and (4) the FY26 year-to-date revenue numbers through March 31 requested by Councillor Flynn.
- The city will continue exploring the creation of a snow reserve (special purpose stabilization fund) to better manage variable snow costs in future years.
- The fiscal impact of the 150 million dollar draw on free cash (including the 40 million OPEB draw) will be monitored at year-end; replenishment is expected to occur over multiple years through budget surpluses and balance sheet management.
Meeting Transcript
Okay, good morning. For the record, my name is Ben Weber. I'm the District 6 City Counselor and the chair of the Ways and Means Committee. Today is May 27th, 2026, and the exact time is 1019 a.m. This hearing is being recorded. It's also being live streamed at Boston.gov slash city-council dash TV and broadcast on Xfinity Channel 8, RCN Channel 82, and FIOS Channel 964. Written testimony may be sent to the committee email at ccc.wm at Boston.gov and will be made part of the record and available to all counselors. Public testimony will be taken at the end of this hearing. Individuals will be called on the order in which they've signed up, and we'll have two minutes to testify.gov for the link, and your name will be added to the list. Today I'm joined by my colleagues in order of arrival, Councillor Culpepper, Counselor Fitzgerald. I have received a letter of absence from Councillor Louis Jen. We're joined by our uh today or this morning by our chief financial officer, Ashley Graffenberger, and our budget director, Jim Williamson. Um we're just gonna uh go past opening statements and wave those, and if you have a presentation, we'll hear from you and then we'll get to questions. Well, uh, thank you, uh Chair Weber and other members of the Boston City Council. Uh my name is uh Jim Williamson. I'm the budget director here at the city of Boston, and I'm joined by the Chief Financial Officer Ashley Garfenberger. Uh we appreciate this opportunity to uh discuss the FY supplemental budget and its impact on the city's finances. Uh we understand the administration values, the shared responsibility of the city council to safeguard uh Boston's limited public resources and uh serve here that serve our city's residents. The appropriation order before you explain the details of its financial transaction, and formally request uh your recommend recommendation for approval at the next city council meeting. So what we uh we put both dockets, we know there's a separate hearing uh this afternoon with uh BPS on Docket 0131, but just for uh completeness uh in terms of the overall change to the budget. Um, zero three zero is for 47.1 million dollars, and that's for snow and winter management. Um later today, uh BPS will come in to speak to Docket 1031, a 22.8 million dollars supplemental for the public schools for uh health insurance and uh utilities. Um just a little uh uh so the funding source that uh supports this appropriation, uh, these appropriations are free cash. Um, and just for for context, I think it's been uh communicated a few times about this the level of free cash that the city has on hand. Uh we started um FY26 by budgeting four million uh forty million dollars for OPEP, which has been uh our our standard practice for for several years now. Uh and with these two supplements, the total seventy million dollars, that'll be uh a hundred and ten million dollar draw on on the free cash balance. Uh, and we must remember that in addition to that, there's 40 million dollars carried forward into the FY27 budget. So there'll be a drawer of about 150 million dollars through the two fiscal years, which is about 24% of the free cash balance of 601. So we uh we understand that this is sort of reserved for extraordinary events, and I think uh the way uh we'll get into the snow and winter management and and speak to how it is sort of uh different from our recent year's experience with snow. Um so the snow budget supplemental covers uh the snow and ice contractors for public works, the Boston public schools, parks and recreation, and the mayor's office of housing. So uh the city provides snow and ice removal for all the roads open to public travel, municipal parking lots, public stairways, footbridge, bridges, paths, bridge pathways, and for uh MOH as a landlord uh of you know, sort of the owner of city-owned lots, they clear the sidewalks in front of those lots. Um expense items include things like contractors, uh both emergency response and uh this year, given the accumulation of snow, uh several post-storm removals. There's staff overtime, uh public work staff who are driving trucks, managing contractors, responding to inquiries, roadway treatment, which includes salt and other approaches to sort of treating the roadway to have a better response for snow removal and ice melting. Uh this year, given the accumulation of snow, uh we rented snow melters. Uh that was a sort of a uh an unusual sort of one-time expense. Uh uh, where we store our snow that we remove from sort of major thoroughfares, business districts, things what we call snow farms, uh, and it's often sort of city-owned assets, but others uh property the city has access to. Um, so for example, parking lots of golf, golf course, um, municipal and golf courses, things of that nature. Uh, and given that um over time, some of the more uh other property has no longer in the city's um control. Uh it's the number of snow farms has reduced, so snow melters became more important to make room in these storage areas to store it. Uh and there's also sort of all the periphery costs of um of providing a snow response. Um, so there's our central fleet is repairing equipment, you know, uh retrofitting it for snow response. Uh and also within uh the snow preparation, we charge the um the debt service for like replacement of snow equipment. So large, you know, um spread snow spreaders and plow blades and the like are in, and then even some of the more uh sort of lower level cost things like weather monitoring costs and things of that nature. So um I guess snow in uh winter management highlights, and I and I know uh uh Chief Gove came down here and did a presentation uh in early March uh right on the heels of those those snowstorms, but um it's we we are not alone in dealing with these sort of uh variable snow uh occurrences in the city. So uh and it's not uncommon for communities uh around the state to seek free cash supplementals to uh close uh a budgetary uh gap um for snow removal. So it's it's um while there's a reporting deadline for the current fiscal year isn't until September 15th. So communities around the state are going to their their select boards and town meetings to get these supplementals to close the books. They don't actually officially have to report their snow and ice removal costs until the state. But that's how um sensitive and how uh impactful it is to municipal budgets that the state separates that one cost item as a is something that they want to pay attention to would have all these state laws, you know, Mass General Law, Chapter 4431D sort of speaks to the emergency nature of snow removal and the fact that you can overspend your appropriation. Uh the this past uh winter uh saw 61.6 inches of snow, marking the coldest and snowest winter in 11 years.
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