The Boston City Council approved Mayor Michelle Wu’s $4.9 billion budget proposal for the fiscal year beginning July 1, incorporating amendments aimed at protecting key city services and programs. The budget, the smallest year-over-year increase since 2009 according to city officials, faced community opposition over cuts but was ultimately adopted following negotiations between the mayor and council.

Wu accepted nearly all of the City Council's proposed changes, totaling about $11.5 million, but reversed a $1.4 million cut targeting the personnel budget of the Department of Transportation. The mayor described the original reduction as a measure that would have led to layoffs, negatively impacting department operations and city services. To preserve jobs, Wu proposed offsetting the personnel reduction by instead cutting $1.4 million from contracted services within the same department. This adjustment allowed the council to maintain funding for various grant programs that the mayor had initially sought to reduce.

City Councilor John Fitzgerald, who championed the initial transportation personnel cut, expressed support for Wu’s revision but faulted the mayor’s office for providing conflicting information about the department’s budget capacity. He said he was initially informed the department could absorb the cut without layoffs but that the administration later retracted this assertion, attributing the change to a miscalculation. “Our intent was always in the way of keeping as many jobs as possible for our city workers,” Fitzgerald said.

Wu’s press secretary, Marcela Dwork, emphasized prior transparency, citing a letter from Chief Financial Officer Ashley Groffenberger sent weeks earlier detailing potential impacts of council amendments — including layoffs tied to personnel cuts. “We provided this information in writing several weeks ago to ensure full public transparency, including that cuts to personnel would result in layoffs,” Dwork said.

The council’s vote on Wednesday marked its final meeting before the new fiscal year, with members effectively accepting the revised budget as no motions were made to override the mayor’s amendment. Dwork expressed gratitude for the council’s review process, stressing the city’s commitment to fiscal responsibility amid economic challenges such as inflation, rising health insurance costs, and unexpectedly high snow removal expenses.

Despite agreement on the budget, some councilors voiced frustration at the inability to fully restore all cuts proposed in Wu’s original plan. Councilor Miniard Culpepper highlighted how reductions to grant programs — including those supporting immigrant residents and food access — threatened critical investments for vulnerable populations. “We made it clear that those cuts were unacceptable, and as a result, the budget is stronger today than the version that was first presented to us in April,” Culpepper said.

Earlier this year, Wu requested and received approval to tap into the city’s emergency reserve fund to cover deficits in both the city and Boston Public Schools budgets. The schools’ budget, part of the city’s overall spending framework, includes the elimination of hundreds of staff positions.

Since last year, Wu has cautioned that inflation and slower revenue growth would necessitate difficult fiscal decisions. Her initial budget proposal in April sought to balance these pressures through targeted reductions, including cuts to a school-year jobs program serving Boston’s youth — sparking protests from advocacy groups. These groups urged the City Council to increase funding, resulting in several amendments restoring some programs.

Additionally, the council voted to adopt a state law provision allowing Boston to adjust senior property tax exemption eligibility annually based on inflation, thereby expanding benefits to qualifying residents.