Coronavirus takes $65M bite out of Boston revenues

Coronavirus is taking a $65 million bite out of Boston’s revenue — more than double initial projections — prompting cost-cutting and hiring freezes across nearly every city department except schools and affordable housing, which will both see funding expansions next year.

Boston Mayor Martin Walsh’s administration on Monday is submitting a revised budget for the fiscal year starting in July with coronavirus-induced losses now in clearer view. The $3.61 billion budget anticipates a projected $65 million revenue loss prompted by the COVID-19 pandemic — more than twice the $30 million initially accounted for in the mayor’s April budget proposal.

Still, the budget allows for a 3.4% increase — $119 million — over last year’s spending, something Walsh said it possible due to “years of careful fiscal stewardship.”

“With this budget, we have an opportunity to seize the moment that is before us to make investments that are grounded in equity, inclusion and that are intentional about directing funding to places where we know it will have the greatest impact in benefiting our residents,” Walsh said.

Walsh at his State of the City address in January vowed more funding for schools and housing, a promise the mayor makes good on in his revised budget. The bulk of the new spending includes $80 million in additional money for schools, with a total proposed budget of $1.26 billion, only slightly under Walsh’s initial proposal.

The budget also includes an $18 million for affordable housing, fulfilling the city’s first-year commitment to a massive $500 million expansion in affordable housing funding across the city.

The health commission will also see a $13 million increase, for a total budget of $106 million that Walsh said is essential to “continue to fight the effects of coronavirus and address the public health needs of Boston.

“I believe that with responsible fiscal planning, with investments in the equity, health and well being of our residents, and with our spirit of courage and collaboration, we will emerge together from these crises stronger and more resilient than before,” Walsh said.

Walsh’s new budget cuts the Boston Police Department’s overtime budget by 20% — $12 million, reallocating that money to social services programs across the city.

Roughly $35 million in cost-savings comes from a six-month hiring freeze on non-essential vacant positions, and revisions to fixed costs like debt service.

from Boston Herald https://ift.tt/3e2at97