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Portsmouth councilors begin FY27 budget discussion as health‑care and COLA push costs higher
Summary
Councilors signaled a difficult FY27 budget cycle, citing a projected 19% rise in the health‑care line and other fixed‑cost pressures. Councilor Taber recommended a process to identify efficiencies and use attrition where possible rather than immediate across‑the‑board layoffs.
Councilors opened discussion of the FY27 budget and the council’s retreat goals that will guide spending priorities. Councilor Taber framed the coming cycle as “very demanding,” warning that health‑care increases and cost‑of‑living adjustments are the primary drivers of pressure and urging the council to develop a process for identifying efficiencies.
Taber said the health‑care line could increase by about 19 percent, a spike that would alone push the budget beyond achievable levels without tough choices. He estimated the council will need to find a balance in the 3.5 percent to 5 percent tax‑burden range and urged an approach that first forecasts services with existing staffing, then asks the city manager and finance staff for an assessment of open positions and retirements to identify opportunities to reduce costs through attrition and consolidation.
Other councilors echoed the need to look for efficiencies, cautious cuts and creative staffing and technology solutions rather than immediate, across‑the‑board layoffs. Mayor McCacran said the retreat goals — including housing and infrastructure priorities — will be woven into the budget conversation.
Why it matters: Health‑care and fixed‑cost increases often drive municipal property tax and service decisions. Councilors set the tone and process for budget development; a structured approach now will shape hearings and any future proposed tax increases.
