The share of Boston’s revenue coming from the state remains well below historical levels. Twenty years ago, state aid comprised 20.5% of the City’s revenue; in FY27, it is budgeted to make up just 10.9%. While Boston receives a sizable state aid contribution, the second-highest level in the state, other cities benefit more from the state’s local aid formula according to need.

Education aid is budgeted to increase 5.4% in FY27, the highest increase since FY20. Despite this recent uptick, education aid growth has been modest over the longer term, growing just 33.2% between FY02 and FY26. Meanwhile, education assessments, driven primarily by rising tuition costs and an increasing number of students attending charter schools, have risen rapidly over the same period.

To learn more about the trends in state education aid to Boston, read our full Research Update here:

How much does the City of Boston appropriate for personnel, and how has personnel spending changed relative to staffing levels over time? What do Boston’s personnel costs look like across funding sources and departments? Collective bargaining agreements establish compensation, benefits, work rules, and other recurring obligations that affect both current budgets and long-term liabilities. What tools can the City use to understand how collective bargaining agreements will affect departmental costs and long-term fiscal obligations? How can Boston strengthen fiscal planning, cost transparency, and accountability for personnel spending in a constrained revenue environment?

Report Objectives

This report provides information and insights on:

• • The size, funding, and composition of Boston’s workforce and personnel budget
  • Trends in staffing and personnel spending across wages, benefits, overtime, pensions, and other major cost categories
  • Three collective bargaining agreements for the School, Fire and Police Departments
  • Opportunities to strengthen multi-year cost analysis, transparency, and oversight of personnel spending and proposed labor agreements

To learn more about Boston’s personnel spending and the effects of collective bargaining agreements, read the full report here: 

How much income-restricted housing has been created or preserved in Boston through Inclusionary Zoning, Linkage, and the Community Preservation Act? What do Boston’s affordable housing outcomes look like across these three programs by unit type, affordability level, and neighborhood? Two of the three of the City’s primary generators for affordable housing, Inclusionary Zoning and Linkage, directly depend on either residential or commercial construction to produce affordable units. How can Boston strengthen affordable housing production, funding stability, and transparency in a constrained development and revenue environment?

Report Objectives

This report provides information and insights on:

• • Boston’s three largest affordable housing programs relying on real estate development: Inclusionary Zoning, Linkage, and the Community Preservation Act
  • Differences in program requirements, unit production, and affordability levels
  • Revenue mechanisms for each program and how funds have been used for affordable housing
  • Impact of slowed real estate development on affordable housing production

To read more about Boston’s affordable housing programs, read the full report here: 

Within a constrained revenue environment and proposed federal cuts in FY26 and FY27, renewed attention has been given to funds that the City of Boston receives from the federal government. Federal funds are an important part of the City of Boston’s budget, supporting programs related to housing, education, economic development, and other areas. How much of the City’s federal expenditures are associated with COVID-19 programs? What do the City’s expenditures of federal funding look like without COVID-19 funds? How can the City manage the end of COVID-19 funds? How would cuts to non-COVID-19 federal funding impact the City’s budget?

Report Objectives

This report provides information and insights on:

• Relative importance of federal funds for city operations
• Changes to Boston’s expenditures of federal funds over time
• Differences in federal expenditures related to COVID-19 and non-COVID-19 programs
• Boston’s largest expenditures of federal funds from FY20 to FY25
• Methods of distribution of federal funds

To read more about Boston’s expenditure of federal funds, read the full report here: 

Budget season in the City of Boston began on April 8 with Mayor Michelle Wu’s release of her FY27 recommended budget. The $4.94B FY27 operating budget represents a 2.1% increase from FY26. The slowdown in revenue growth limited FY27 budget growth, with property taxes increasing at their slowest rate since FY98. Nevertheless, property taxes grew as a share of overall revenues from FY26, due in large part to steep declines in other revenues, particularly from interest on investments and building permits.

In addition to cuts across many departments, the City restructured pension and debt service payments, reducing spending in these categories by $24.7M and $13.1M, respectively. A reduction of 519.8 full-time equivalents (FTEs) does not translate into a proportionate decrease in the FY27 operating budget. Health insurance and salary increases negotiated in recent collective bargaining agreements were major drivers of growth in this budget. The increase of $92.0M in FY27 spending on health insurance represents a 23.9% increase from FY26 to FY27. Without health insurance costs, the BPS budget is still growing 2.7% ($40.1M), a notable trend in a year in which the total budget for all other departments is shrinking by 1.0% (-$16.4M). Alongside the operating budget, the Mayor also released a $4.44B 5-year capital plan, a decrease of 1.0% (-$43.2M) from the previous capital plan.

To learn more about key FY27 budget issues and Boston’s policy options, read the full report here:

To learn more about the state of Boston’s ARPA funds, read our full Research Update here:

To learn more about the context of Boston’s recent health care cost increases and Boston’s policy options, read our full Special Report here:

To learn more about some of the key considerations for policymakers in the FY27 school budget, read our full Research Update here:

On February 4, Boston Public Schools’ Superintendent, Mary Skipper, revealed a FY27 general fund budget of $1.71B, a 4.5% increase from the current FY26 budget. Of the $73.6M in additional spending in the FY27 budget, $34.1M will go towards health insurance costs.

The FY27 general budget includes a substantial decrease in full-time equivalents (FTEs) of 4.8% (531.2 FTE) from FY26, bringing personnel back to levels similar to FY25. Despite the decline in FTEs, FY27 personnel spending of $1.34B is a 4.2% ($54.4M) increase from FY26, reflecting, in part, pay increases agreed to as part of the Boston Teachers Union contract ratified in May 2025.

To learn more about the details of the FY27 school budget, read the full Research Update here: 

With tax bills issued earlier this month for the second half of fiscal year 2026, Boston property owners now have a clear picture of the taxes they owe, with tax rates rising for both residential and business properties. This report analyzes Boston’s tax rates, assessed values, and new growth and their implications for the City’s property tax levy, which accounted for 71.7% of operating revenue in FY26.

Boston’s assessed property value grew in FY26 for the fifteenth straight year, rising slightly due to increasing residential values. Notably, FY26 is the second consecutive year that business values fell, tempering the effect of some of the residential value growth. At the same time, residential and business new growth slowed from FY25. The declines in business values and new growth raise concerns for FY27 and beyond, given the significance of business property taxes in funding Boston’s budget.

To learn more about new growth, tax rates and assessed values in FY26, read the full report here: