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Augusta projects $21 million shortfall in proposed 2026 budget
Summary
At an October budget session, Augusta administrators warned of a projected $21 million general-fund deficit for fiscal 2026, driven by rising personnel and health-care costs and the end of one-time American Rescue Plan funding. Officials outlined revenue updates, potential millage options and cuts under consideration.
Augusta city officials told the Augusta City Commission at an October budget session that the proposed 2026 general fund budget faces a projected $21 million gap driven by rising employee costs and the loss of one-time federal funding.
Administrator Allen told commissioners the city revised revenue projections after receiving the 2025 insurance premium tax payment, which was 14% higher than 2024 and allowed staff to project conservatively a 7.9% increase for the Fire Protection Fund. "We have revised that budget ... to include no mill increase for the fire protection or urban services, conservatively projecting a 7.9% increase for 2026," Administrator Allen said.
The administrator presented multiple revenue and expense drivers that together produce the $21 million shortfall. Key items cited include the loss of roughly $7.4 million in American Rescue Plan Act (ARPA) funds that had been used in prior years to balance budgets; higher projected health insurance costs; full-year costs for recently filled sheriff's office positions; and increased prisoner medical and…
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