Albuquerque officials discuss budget projections amid federal job losses and consumer confidence decline

During the recent Albuquerque City Council meeting held on May 19, 2025, discussions centered around the city's financial outlook and the broader economic challenges facing New Mexico. The meeting highlighted concerns regarding the state’s reliance on federal funding and the implications of declining consumer confidence.

City officials addressed the fiscal year 2026 budget, noting that while projections remain stable, uncertainties persist. Councilor Lewis inquired whether recent reports on consumer confidence, which showed a fifth consecutive month of decline, would alter budget growth projections. The response indicated that while the situation is concerning, it does not significantly change the budgetary outlook. The pessimistic scenario for economic growth remains at 35%, with an optimistic scenario at 20%.

A significant point raised was New Mexico's vulnerability due to its high dependence on federal transfers, such as Medicaid and SNAP. This reliance places the state at risk, particularly in light of potential federal layoffs, which have already seen 400 federal jobs lost in Albuquerque. The full impact of these layoffs has yet to be felt in employment statistics, as many affected individuals continue to receive pay.

Councilor Baca expressed concern about the potential repercussions of federal job losses on the local economy, emphasizing the need for tracking these changes closely. The discussion also touched on the city’s efforts to boost consumer confidence amid fears of recession, with Councilor Sanchez suggesting that addressing crime and drug-related issues could help improve public sentiment and economic activity.

The meeting concluded with a call for further analysis of revenue projections, particularly in comparison to neighboring areas like Rio Rancho and Bernalillo County. Council members emphasized the importance of exploring potential revenue opportunities to support ongoing city projects and address community needs.

Overall, the meeting underscored the challenges Albuquerque faces as it navigates economic uncertainties while striving to maintain fiscal stability and enhance community well-being. As the council prepares for future discussions, the focus will remain on understanding the local economic landscape and identifying strategies to foster growth and resilience.