The city of Boston is facing a projected budget deficit of $48.4 million for the current fiscal year, according to Chief Financial Officer Ashley Groffenberger. The Wu administration is delaying hiring and reducing some spending in an effort to close the gap before the fiscal year ends on June 30. The deficit was detailed in a letter to the City Council, largely attributed to external cost pressures such as snow removal, police overtime, and employee health insurance costs. The city has about $1.2 billion in reserve funds it could use to close this gap, but plans to continue working towards the deficit. In December, Mayor Michelle Wu asked department leaders to propose budgets for fiscal year 2027 that are two percent below their current budgets. Additionally, Boston Public Schools is also facing a $53 million budget deficit.