Boston Posts $88 Million Surplus in FY2024, Fueled by Investment Windfall

BOSTON — March 20, 2025 — Boston's City Council finance oversight committee reviewed an $88 million fiscal year 2024 surplus built largely on a $163 million investment income windfall against a $29 million budget projection. Councilor Julia M. Mejia chaired the virtual hearing Thursday, joined by Council President Liz Breadon and Councilor Edward M. Flynn, with Chief Financial Officer Ashley Grafenberger, City Auditor Scott Finn, and Budget Director James Williamson presenting highlights from the city's Annual Comprehensive Financial Report. The FY2024 budget stood at $4.292 billion; actual expenditures reached $4.381 billion, with the $89 million overage driven entirely by public safety overtime and court-ordered judgments and settlements. The city's unassigned general fund balance was $1.4 billion — 30.5 percent of general fund expenditures — while its OPEB liability climbed $250 million to $2.6 billion and its net pension liability held at $1.5 billion, down from the prior year on strong investment returns. Grafenberger cautioned that the interest income surplus cannot be assumed to continue as the Federal Reserve moves to reduce rates, and officials confirmed a public safety overtime deficit is again expected in FY2025, though they expect it to be smaller than last year's.