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Lawrence airport projects a budget shortfall for 2026; city transfer covers operations now
Summary
City budget staff presented a preliminary 2026 forecast showing an operating deficit that will draw down airport fund balance. The presentation showed a large transfer from the general fund in the current year (nearly $500,000) and projected a year‑end negative position in 2026 unless revenues rise or costs are reduced.
A city budget presentation at the Aviation Advisory Board meeting on June 4 outlined a multisession concern: the Lawrence airport fund is drawing down reserves and may show a negative net position in 2026 without changes to revenue or expense allocations.
A city staff member, Kathleen, reviewed a preliminary 2026 fund forecast and explained that the current year includes a substantial transfer from the city’s general fund — nearly $500,000 — to cover airport operating needs. “The transfer in is coming from the general fund. It's pretty significant. In the current year, almost half a million dollars is coming as a transfer in,” Kathleen said.
Staff showed a projected increase in revenues of roughly 8 percent in 2026, but that improvement would not eliminate a projected year‑end deficit of about $200,000 under current assumptions. The presentation noted that continued capital spending, legal expenses and maintenance needs are contributing to the drawdown of fund balance and that best practice recommends maintaining a fund balance (reserve) target (for example, a percentage of annual expenses) to preserve fiscal stability.
Budget staff and airport management discussed possible next steps: identify opportunities to increase airport revenue (such as adjusted lease terms or rates), reassess operating allocations, and examine capital timing so projects align with available grants and local match capacity. The presentation also noted that capital projects often require local match and that tight operating reserves limit the city’s flexibility to match grants.
Board members and staff agreed to develop options for revenue increases and cost adjustments, and staff said it would bring proposals back to the board as budget discussions proceed through the city's capital improvement program and budget calendar.
