FY24 Operating Budget
The FY24 Recommended Operating Budget totals $4.28 billion and represents an increase of $274 million or 6.8% over FY23.
- The operating budget is an approved annual spending plan allotted to both City departments and central budgets. The budget supports the cost of the day-to-day operations of City government, such as public education and public safety.
- The budget also includes the yearly mandatory payments required to support long-term commitments for items like retirement pensions and debt service related to the Capital Plan.
- The operating budget is funded primarily based on an estimate of annual recurring revenues.
Operating Budget Overall Spending
- The FY24 budget reflects an increase of $274 million, or 6.8%, over the FY23 budget.
- Of this year's growth, 31% is dedicated to education, including Boston Public Schools (BPS) and Charter School Tuition Assessment. An additional 28% is targeted to maintain core City services and invest in a wide range of supports for community needs.
- The collective bargaining reserve will see 16% of the growth from FY23. The remaining 24% will be consumed by the fixed costs of pensions and debt service.
Operating Budget Total Spending
FY21-22 amounts are actual expenditures. The FY23 and FY24 amounts are budgeted.
Operating Budget spending can be broken down into six main categories:
- Personnel Service costs cover items such as employee salaries, overtime, and benefits.
- Contractual Services represents services procured to support departmental operations such as telecommunications, utilities, and other operational services.
- Supplies and Materials covers costs such as gasoline for vehicles, office supplies, and other general supplies to support departmental operations.
- Current Charges include required expenses for things like health insurance, bonds, and health liability expenses.
- Equipment costs include purchases like computers, financing costs for vehicles, and information technology and telecommunication equipment.
- Other costs include large items like employee pensions and capital bond debt service and charges assessed by the Commonwealth of Massachusetts.
The chart to the left shows expenditures by area over three years.
The FY22 amount is actual expenditures. The FY23 and FY24 amounts are budgeted.
Select a department to see how its budget has changed over time.
The FY21-22 amounts are actual expenditures. The FY23 and FY24 amounts are budgeted.
The property tax levy has always been the City’s largest and most dependable source of recurring revenue. In the last two decades, property taxes have become a significantly larger portion of the total revenue due to decreases in state aid.
The Non-Recurring category includes $40 million from city's available balance.