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Bernalillo County presents a flat FY27 budget; staff aim to close an $8.5M shortfall without tax increases
Summary
County staff told the Board of County Commissioners on March 19 that FY27 general fund revenues are projected at $471 million while expenditures total about $480 million, leaving an estimated $8.5 million shortfall; the county manager said the administration is not proposing a tax increase and departments outlined cost‑control and service priorities.
Bernalillo County leaders presented a largely flat fiscal 2027 budget to the Board of County Commissioners on March 19, with staff and department heads outlining operations, staffing needs and priorities as the county works to close a projected $8.5 million general‑fund gap without raising taxes.
Deputy County Manager for Finance Shirley Reagan said the county projects about $471 million in general fund revenue for FY27, reflecting roughly 3.5% growth in gross receipts tax and 3% growth in property tax, while current proposed expenditures total roughly $480 million. Payroll accounts for the majority of the county’s spending: about 67% (roughly $319–$320 million) versus 33% for operating costs (about $160 million).
“We are coming into a flat budget,” the county manager told commissioners, urging departments and the commission to prioritize essential services and to avoid adding permanent recurring costs. Staff emphasized they are working to “clean out every cushion” and examine existing activities for potential reductions before pursuing new revenue.
Department presentations that followed underscored the pressure points driving costs. Countywide payroll and benefits represent the largest line-item pressure; departments reported recruitment and retention needs as well as rising inflationary costs for goods, services and equipment. Several offices flagged technology contracts, vehicle and apparatus prices, and election‑related costs as areas where expenses have grown faster than general inflation.
Julie Baka, the county’s chief operating officer, presented the commission office budget, noting a steady footprint of roughly $6.5 million and 10 positions. Other speakers highlighted similar themes: the assessor’s office said it is balancing mass appraisal work for approximately 285,000 properties while addressing expanded veterans’ exemptions; the sheriff said his department is near full sworn staffing after intensive recruiting but continues to face escalating fleet and technology costs.
Clerk Michelle Kavanaaugh warned that the state’s reduced election reimbursements could mean an estimated $2.1 million impact to county operations for upcoming primaries and elections, a point commissioners said they will carry to the county’s legislative priorities.
County staff said they will return with a balanced budget proposal for the commission’s April consideration and continue to explore internal savings, one‑time offsets and operational changes to limit impacts on core services. The county manager said she expects the FY27 proposal to require difficult choices but emphasized the administration will avoid recommending a tax increase for FY27.
What’s next: County staff plan to present a balanced FY27 proposal to the commission April 13 and submit required materials to the state by June 1. Commissioners said they expect detailed and transparent explanations of any one‑time offsets and proposed structural changes before any decision about additional revenue is considered.
