Mayor opened the final public budget hearings by outlining the city's overall budget frame and asking cabinet and department heads to plan for uncertainty.

"This budget process is nearing nearly $1,000,000,000," the Mayor said, and asked departments to prepare two versions of their requests: a level-service budget and a version with roughly a 3% reduction. He said the city aims to avoid using reserves and noted the administration's current reserve balance: "we have a ... reserve of $71,000,000." The Mayor also asked departments to note how proposed cuts would affect direct services to residents and businesses.

Why it matters: the Mayor said federal policy changes could reduce federal funding streams that flow to the state, the city and the schools, forcing difficult local choices. To inform decisions, the chief administrative and financial officers told departments to identify how any cuts would change on-the-ground services.

Key details from the hearing:
- The Mayor said uncontrollable federal changes could hit the state and local budgets; he gave an illustrative figure: "On the state side, if all federal funding was to be cut, would be $16,000,000,000 ... On the city side, it would be $55,000,000. And on the school side, it would be $75,000,000," and he mentioned targeted impacts to Title I and other education programs.
- The administration currently projects a remaining city-level shortfall; CFO Kathy Bunnell told the hearing the department-level level-service requests leave a budget gap of roughly "$24,000,000" before any additional assumed cuts.
- The Mayor said the city has balanced its budgets for 10 consecutive years without using reserves and emphasized the desire to continue that practice while being "prepared for the worst and hope for the best."

Departments were directed to return two spreadsheets: a level-service budget and a 3%-cut scenario. The Mayor and CFO said cuts should be evaluated first for their effect on customer-facing services.

Looking ahead: the administration expects to finalize an executive budget for delivery to city council after March 31 revenue close and to work with council on hearings and adjustments. The Mayor said the administration will attempt to be "surgical" with reductions and to preserve core services where possible.

Sources and attribution: Quotes and figures above are drawn from remarks by the Mayor and CFO Kathy Bunnell during the opening of the FY26 budget hearings.