Skagway assembly hears draft FY26 budget showing about $3.4 million gap as departments press for staff and equipment

Manager Deach presented a draft FY26 municipal budget to the Skagway Municipality Assembly of the Whole on Oct. 14, saying the document is intentionally a working draft that lays out department requests and service levels before cuts are made. "I really wanted to go over what we've been putting together over the past few weeks, with department heads," Deach said, adding that the draft currently shows a deficit that "is going to need to change, and it will."

The manager framed the draft as more transparent than past budgets, with capital outlay for some larger equipment shown inside operating budgets so the assembly can see the full staffing and equipment picture. Deach highlighted building‑condition assessments for municipal facilities, a push for clearer staffing lines, and an emphasis on preventative maintenance to avoid larger replacement costs later.

Why it matters: the draft includes multiple new staff and equipment requests across departments while the municipality confronts a preliminary shortfall the manager estimated at about $3.4 million. Assembly members repeatedly asked for clarifications and suggested the draft will be pared back as port and capital project revenues and allocations are finalized.

Major departmental requests and details

Administration: Deach proposed reallocating some legal costs to the departments where they originate, adding an…