Commission weighs hiring freeze, cuts and limited millage to close FY2026 gap

Augusta‑Richmond County officials moved deeper into FY2026 budget deliberations on Nov. 25, discussing a package of spending cuts and limited revenue options after administrators presented a balanced‑budget path that still leaves the law‑enforcement fund out of balance.

Administrator presentation and numbers: the administration reviewed FY2026 basics, citing a revenue base presented as about $205.9 million and a proposed total around $221.8 million after adjustments. The staff said net revenue differences and expenditure growth produced the current shortfall and walked commissioners through previously discussed cuts that reduced the top‑line gap to an estimated $19.9 million before additional options.

Options on the table: staff highlighted several measures to close the remaining gap for the general and law‑enforcement funds: eliminating the proposed 3% cost‑of‑living adjustment for employees; a 30% reduction in discretionary funding for nongovernmental organizations; a targeted 2% additional cut across departments (totaling a 5% package if applied); a hiring freeze (staff initially estimated three months would save about $1,000,000 and commissioners discussed extending it to six months to increase savings); and a limited millage increase for the law‑enforcement fund (staff cited 0.85 mills as the amount needed to address the public‑safety portion of the shortfall, roughly $29.75 a year for a $100,000 house).

Service and personnel impacts: commissioners pressed staff for details on where operating reductions would come from and whether additional cuts would affect positions. Interim Director Schraer said the $309,000 of additional recommended finance reductions were operating adjustments rather than position eliminations; separately, staff identified about 5 proposed position cuts in Housing & Community Development (two currently vacant, three filled field positions impacted). On benefits, staff said an HMO plan's per‑pay‑period employee cost would rise by roughly $6 for payees earning up to $50,000, $8 for those earning $50,000–$100,000 and $15 for those above $100,000.

Transit and other services: commissioners focused on transit implications of removing one bus from several routes—staff estimated some runs could see wait times extend from about 40 minutes to roughly 80 minutes. Commissioners also discussed existing hotel/motel tax changes and short‑term rental (Airbnb/VRBO) collection and whether those funds could offset general‑fund needs; staff noted a recently increased hotel/motel rate that directs portions to the Coliseum Authority and Destination Augusta and estimated roughly $2,000,000 would flow toward the general fund from short‑term rental taxes under current rules.

Next steps: commissioners asked staff to explore alternatives while the commission recessed to executive session; staff said they would return with side‑by‑side scenarios (for example, showing the difference between a 0.85 vs. 1.0 millage option) and analysis of the impacts of extending hiring‑freeze duration. The commission took a formal vote to recess to executive session to continue budget deliberations.

Quote: Administrator (unnamed) — "We have an updated proposal for balancing the general fund and law enforcement fund for 2026."