Budget
FY27 Proposed Budget: Prioritizing Essential Services and Efficiency
The City of Albuquerque’s FY27 operating budget reflects a disciplined, responsible approach to managing taxpayer resources during a time of economic uncertainty and rising costs. Local governments across the nation are facing similar challenges, including tightening revenues, inflationary pressures, rising service and healthcare costs, and uncertainty in federal funding.
The proposed $1.47 billion budget is $35 million less than last year. This was achieved through a proactive effort to eliminate inefficiencies, reduce overhead, and prioritize mission-critical services. Importantly, these reductions do not represent layoffs. They are largely achieved by deactivating vacant, redundant, or non-essential positions. This allowed the City to streamline operations without reducing its current workforce or service capacity.
This budget reflects a clear commitment to fiscal responsibility: making tough, but necessary decisions, prioritizing essential services, and restructuring government operations to deliver better results at lower cost.
Ask questions and get answers about the 2027 Proposed Budget
Learn more about the City's budget process
Questions and Answers
- The City and County of Denver faced a $200 million shortfall which led to 169 layoffs and 667 position eliminations. The city placed all agencies on a hiring freeze and froze all merit increases for the 2026 year. This will likely continue into 2027.
- The City of Phoenix faced a $39 million budget shortfall in 2026. To meet the shortfall, the city cut $24 million to the General Fund which impacted several departments. Additionally, public safety felt a big hit with $11 million in cuts to the fire department.
- In 2026, the City of Dallas is navigating a 36.5 million budget shortfall. It’s driven by rising pension obligations, property tax revenue declining and a decrease in tax revenue. To meet the deficits, the city is cutting departments like libraries and parks.
- Rising costs (including healthcare and operations)
- Inflationary pressures
- Uncertainty in federal funding
- Public safety
- Homelessness and behavioral health services
- Affordable housing
- Core quality-of-life services, like parks, the arts, and family services
- Resources are shifted from administration to frontline response and APD is funding 100 Police Service Aides that will allow sworn officers to focus on core law enforcement duties
- Albuquerque Fire Rescue is also investing in field response, and will see its highest pay increases in city history
- The third branch of public safety, Albuquerque Community Safety (ACS), is receiving a $2 million investment to expand field response and double the size of its impactful Street Outreach Team
- Fully funding the Gateway System
- Expanding outreach through ACS
- $500,000 in reallocated funding for providing motel vouchers (a flexible shelter option for those in need) and $400,000 for a new diversion program targeted to address low-level, non-violent offenders to help reduce the burden on the court system
- Recruit and retain employees
- Stay competitive in a tight labor market
- Implement the class and comp study
- Consolidating administrative functions
- Reducing reliance on outside contracts
- Expanding in-house capabilities
- Local business development
- Redevelopment efforts
- Key infrastructure like Double Eagle II and the rail spur
Fiscal 2027 Proposed Budget
Download the 2027 Proposed Budget
Budget Process
The purposes, processes, and structure of the City of Albuquerque budget are defined in the City Budget Ordinance. Each year, the Mayor proposes a Financial Budget to the City Council by April 1. The Council then approves or makes changes to (amends) the budget. The City Council conducts public hearings to allow public input in the budget process. Citizens are encouraged to participate in the Council budget meetings. Please see the City Council schedule for the time and location of a budget meeting.
The City's fiscal year runs July 1 to June 30.
The City’s annual budget process begins with the publication of the Five-Year Forecast annually in December. The Five-Year Forecast estimates future revenues and expenditures for the General Fund and the subsidized funds for the current fiscal year as well as future years. The purpose of this forecast is to identify key trends in revenues and expenditures and to provide information about the financial challenges anticipated over the next few years.
Financial & Performance Plan
The City's budget is formulated in two parts – a financial plan and a performance plan. The financial plan is organized by fund, department, and program strategy. Funds are groupings of related accounts that are used to maintain control over resources that have been segregated for specific activities. The performance plan is organized by Goal, desired community condition, and program strategy. These goals are adopted by the Mayor and City Council every 5 years, after significant community input. A goal is a long term result that is further defined by desired community conditions that would exist if the goal were achieved. Desired Conditions are the focus of indicators of progress, formulated and published every two years by a citizen commission, the Indicators Progress Commission. View the latest Albuquerque Progress Report.
Annual Objectives
Annual objectives are also adopted by resolution by the Mayor and City Council. Objectives are specific steps taken by the City for achieving goals. For the most part, objectives should be tangible products or achievements rather than the activities that produce the products. Each objective should be attainable within a specified period of time, preferably within a fiscal year or two consecutive fiscal years.