Boston Posts $88 Million FY24 Surplus as Council Begins FY26 Budget Review

BOSTON — February 27, 2025 — Boston City Council opens FY26 budget season with $88 million FY24 surplus on record. The Council Committee on Ways and Means held its first FY26 budget hearing Thursday, chaired by District 4 Councilor Brian Worrell and co-sponsored by Councilor Benjamin J. Weber. Chief Financial Officer Ashley Groffenberger and Budget Director Jim Williamson reported that the city ended fiscal year 2024 with an $88 million surplus — roughly 2 percent of expenditures — driven by $177 million in above-budget revenues, largely from interest on investments, offset by $89 million in required overspending in public safety and court judgments. For FY26, officials flagged declining interest income as rates fall, net state aid growth that is failing to keep pace with rising MBTA and charter school assessments, and mounting fixed costs in pensions, debt service, and health insurance. Councilor Liz Breadon raised the specter of federal policy disruption, warning of "irreparable damage" from Washington that could destabilize city finances.