In a Monday letter, Boston Mayor Michelle Wu sent her proposed $4.8 billion annual operating budget to the Boston City Council, saying her spending plan “prioritizes resources for the most fundamental services,” in a statement that included explicit nods to the economic and fiscal uncertainty triggered by President Trump’s policy moves.
“We are in a very unpredictable moment,” said Wu in a phone interview Monday afternoon. “What we are trying to do at this point in the budget process is to send over a solid, financially responsible plan that takes into account as much uncertainty as we possibly can while protecting city services as much as we possibly can.”
Alluding to stock market volatility and the economic uncertainty unleashed by Trump, Wu warned, “it may get even worse than anyone can imagine.” She did not discount that a worst-case fiscal scenario for the city could involve hiring freezes and service cuts.
“I am going to take every possible step to manage as hard as we can to avoid that,” she said. “I know how much our residents rely on city services.”
The city, she said, finds itself having to make “very hard decisions about how to protect our communities in the face of tremendous uncertainty and even outright attacks.”
Her plan, according to her letter to the council, includes “targeted reductions and reflects a judicious use of resources in order to meet our fixed and long-term obligations while preserving jobs and services.” The proposal represents a 4.4 percent increase over the current year’s fiscal budget.
The mayor’s budget plan, according to Wu’s letter, would reduce the number of long-term vacant positions and reduce discretionary non-personnel spending. Departments will convert other remaining long-term vacant positions into new roles, using existing resources to meet new needs without increasing spending.
“In the face of national economic uncertainty, the city of Boston maintains strong financial health from consistent and responsible budget management, reflected in our consistent AAA bond rating for more than a decade and annual balanced budgets,” read the letter.
Funding for some city departments, Wu said, will be reduced from the previous year’s spending level for various reasons. For instance, the mayor’s office of housing and property management featured a one-time investment this year that will not continue next year, according to the mayor’s letter. Elsewhere, the equity and inclusion cabinet will see a year-over-year funding reduction because of the centralization of cabinet functions.
“These departments are not losing resources, but rather coordinating access to cabinet-wide support,” Wu said in the letter.
The Planning Department and the Office of Workforce Development allocations, meanwhile, are shrinking “due to a more accurate assessment of their needs as new city departments.”
She also highlighted some areas of growth in her budget. The city’s streets cabinet, for instance, would see modest growth of $12.8 million or 6.6 percent connected to new collection contracts that provide more labor and require more reliable trucks.
Regarding public safety, Wu said Boston police next fiscal year will recruit two replacement classes for winter and spring 2026, while Boston fire will include the first cohort of fire cadets during this fall’s recruitment class.
Public education would see growth of $45 million in Wu’s budget proposal, but her plan does not yet include increased costs associated with a pending teachers’ contract agreement.
The city, she said, will continue to monitor the “rapidly evolving federal policy landscape and volatile global economic outlook as a consequence of federal actions,” since about $300 million in federal funding supports city services annually.
“We must exercise caution to ensure stability for our communities — preparing for worst case scenarios while refraining from pre-emptive disruption of city services,” read the letter.
Wu’s administration will offer a budget presentation to city councilors this Wednesday, which will include more details on her proposed spending plans. The council will then hold a host of budget meetings over the next few months. The council can reject, reduce, or amend the mayor’s proposed budget so long as the total value of their budget amendments do not exceed the total amount proposed by the mayor.
Danny McDonald can be reached at daniel.mcdonald@globe.com. Follow him @Danny__McDonald.