City presents FY26 budget pitch as health care, pay and jail costs drive debates

Columbus city officials opened the first of three budget review sessions on May 6 with a wide-ranging presentation of the mayor's proposed FY26 spending plan and a running list of new personnel requests and program changes.

The city's finance director, Angelica Alexander, told the Budget Review Committee the administration projects $373,067,602 in revenues for FY26 and identified $18,645,748 in planned use of fund balance to balance operating needs. Alexander said the administration included a proposed 3% cost-of-living adjustment for full-time employees, a 1% market adjustment, and changes to health-benefit contribution splits.

City Manager Isaiah Huegley said the mayor and staff reviewed departmental requests line by line to deliver a balanced proposal, but warned that the administration had to remove items before the budget was finalized because the initial requests were roughly $12 million out of balance. "We had to go back for another review and take some things out in order to deliver as required by law to you a balanced budget," Huegley said.

Why it matters: Departments from public safety to courts and recreation pressed the committee for additional staff and operating money. Many of those requests create recurring personnel costs that councilors said must be matched to projected revenue or explicitly funded from one-time reserves. Officials repeatedly flagged sustainability and that some one-time federal ARPA support is temporary and will end.

Health plan shortfall and rate changes The city's benefits consultant, Melody Lewis of NFP, told the committee the self-funded health plan requires a net City contribution increase from $17,230,364 (FY25) to $20,048,946 (FY26) — a 13.7% per-budgeted-head increase. Lewis said major drivers are higher utilization, several very high-cost claimants in recent years and a modest expected increase in the insurer's administration fees. To reduce the gap, the administration proposed shifting active employee premium…