Mayor Martin Walsh on Wednesday proposed a $3.14 billion city operating budget for Fiscal Year 2018, a 4.8 percent, or $143.7 million, jump over last year. Walsh says the budget would more fully support Boston’s neighborhoods and increase investments in areas like education, homelessness resources, and broader city services.

“I am proud to put forth a budget that makes strategic investments to support Boston’s neighborhoods, and builds on our strong record of fiscal management,” Walsh said in a statement. “This proposal represents a smart, responsible, and sustainable fiscal strategy that is forward-looking and will achieve maximum impact by investing in our people. Together, we will continue to put the City of Boston in the very best possible position to thrive this coming year, and in the years ahead.”

The mayor touted his $1.061 billion Boston Public Schools budget —approved by the Boston School Committee and to be considered by the City Council — and said it’s likely to increase by another $20 million after collective bargaining.

Up about $2 million in the proposed budget, the Boston Public Health Commission would receive $79.08 million in FY18. Some of that increase would “ensure that the city’s homeless shelters continue to operate 24/7,” according to the statement. Veterans assistance programs would also get a boost, including an increase of $150,000 in general funds to provide support services for veterans not eligible for veterans’ affairs programs, as well as $50,000 in federal funds to provide down payment assistance to veterans.

The Environment, Energy and Open Space Cabinet would see a 2.3 increase in FY18, including a 12.8 increase in the Environment Department’s budget, a decrease of 1.6 percent in the Inspectional Services Department portfolio, and a 4.7 percent increase for the Parks and Recreation Department.

The mayor’s budget invests in a rotation of small renovations to neighborhood ball fields to keep them safe and playable, according to the announcement.

Dave Sweeney, the city’s chief financial officer, said the budget “reflects reality” with local revenue sources are growing by 5.5 percent. That growth is offset, he notes, by state aid growth of 2.5 percent, which still leaves overall state aid below 2008 levels.

Boston’s revenue stream is already disproportionately dependent on property taxes, a trend that continues into FY18. Property tax accounts for 69.7 percent of the overall revenue — the net levy has risen by $110.7 million this year — a slight uptick from 69.6 percent in FY17.

Expenditures are increasing accordingly, with appropriations rising by $94.1 million (4 percent) and fixed costs by $49.6 million (8 percent).

“When you think about where we are as a city, for the last three years we’ve benefitted from a very strong economy,” Walsh said. This budget rides the line between allocating the resources that come along with a boom time and also readying for the future, he said.

 “We’re spending responsibly,” the mayor added, “but we’re also preparing for the inevitable, where there will be a downturn in the economy.”

City officials highlighted cost-saving measures, including overtime reform, eliminating long-term vacant positions, energy efficiency improvements, which will account for about $60 million in savings.
This proposal is a balanced budget, Sweeney said, though adjustments are likely to occur through the budgetary process.

“But, he added, “only because of the city’s diligence in finding ways to reduce its costs are we able to continue to make new investments across city departments, in particular in this budget at BPS, and the public safety departments,” he said.

The city’s operating budget and capital budget are being released separately this year, with detail on local investments expected with the upcomimg rollout of the capital budget.