Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Lea County presents FY27 preliminary budget including 2.7% COLA, seven new positions and lower capital outlays
Summary
Lea County staff presented a preliminary FY27 budget that assumes continued dependence on oil-and-gas revenue, proposes a 2.7% cost‑of‑living increase for most employees, seven new positions (about $989,885), and a reduced capital program; commissioners reviewed the proposal and will consider final preliminary approval at the next meeting.
Lea County staff unveiled the county's preliminary FY27 budget on May 7, outlining revenue assumptions tied to oil and gas production, a proposed 2.7% cost‑of‑living adjustment for most employees effective July 1, 2026, and seven new positions that would cost an estimated $989,885.
The budget presenter, identified only by role as the county budget official, said the administration is planning conservatively because of uncertainty in oil prices and production. The staff memo sets a working oil price assumption of about $37.25 per barrel for planning purposes and noted that revenue modeling with the UNM Bureau of Business and Economic Research will be complete by the end of June.
The compensation changes include a 2.7% COLA for almost all non‑contracted employees and a set of step adjustments intended to correct pay compression. The presenter said the COLA alone for about 400 employees would cost roughly $785,778 and additional adjustments and compression corrections bring the personnel impact to an estimated $1.7 million in total adjustments across pay and benefits.
Staff also proposed a capital budget package in the vicinity of $244.8 million that includes road construction, event center renovation, detention center upgrades, airport projects and courthouse remodel design. The presenter said the county maintains a multi‑month reserve target and that projected general fund revenues for FY27 are roughly $194.8 million with planned operational spending intended to keep current‑year operations positive.
Commissioners pressed for detail on the seven new positions and where custodial staff would be assigned; facilities staff explained two custodial positions would be split between a new Hobbs facility and a roving floater role to cover leave and vacations. The presenter said the administration will return with final preliminary approval at the next commission meeting to submit the budget to the Department of Finance and Administration (DFA).
The commission took no final budget vote at the May 7 meeting; the presenter said the board will consider a final preliminary approval at the next meeting before submission to DFA.
