BOSTON — Boston is working to close a nearly $50 million budget shortfall, city officials confirmed.
The city’s chief financial officer said the deficit is driven by higher-than-expected spending on snow removal, police overtime, and employee health insurance.
Mayor Michelle Wu began taking steps to address the gap months ago. In December, she directed department heads to prepare 2% budget cuts and implemented a citywide hiring freeze.
City officials are now weighing several options to close the remaining shortfall, including drawing from Boston’s reserve funds, which currently total $1.2 billion.
Discussions around how to cover the deficit are ongoing.
Officials say they are focused on protecting essential city services while maintaining Boston’s long-term financial stability.
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