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Council presses administration for clarity after mayor's budget claims; economist reports modest GRT growth, cannabis decline
Summary
Councilors pressed the administration for details after the mayor's budget was described in media as cutting $35 million; city economist Christine Borner said FY27 general fund revenues are projected to grow about 2.5% while cannabis receipts slipped, and flagged phasedown of medical/food hold‑harmless payments.
City Council members on April 6 pressed the administration to explain messaging around the mayor's proposed budget, saying press reports that it would cut $35 million did not match the revenue and spending figures the council is seeing.
Councilor (speaker labeled S3) said the materials the council received show a year‑over‑year general fund revenue increase and questioned how the administration could characterize the document as showing spending reductions. Administration representatives (Mr. Whelan, S4, and finance staff, S6) told the council they would provide the breakdown of the $35 million figure and the portion that represents true expenditure reductions versus inter‑fund reallocations.
The council also heard a presentation from city economist Christine Borner (S18), who said January state‑shared gross receipts tax (GRT) receipts grew 2.7% and that cumulative GRT growth for the year to date stood at about 4.6%. Borner said the total GRT is projected to grow about 1.9% in FY27, contributing roughly $11.5 million, while total general fund revenue growth for FY27 was projected at about 2.5% (approximately $21.7 million). She noted that cannabis receipts declined 7.3% for the month and have pulled cumulative cannabis growth to roughly -3% for the year.
Several councilors asked Borner and administration staff to explain "hold‑harmless" distributions for food and medical GRT reimbursement and how the phasedown affects the revenue baseline. Borner said the phasedown has reduced what the city would otherwise have received — estimating that, without the phaseout, those hold‑harmless payments would have totaled roughly $66.6 million in recent years but are now reduced to under $14 million for FY27 because of the phaseout schedule. She said the city is losing about $4 million per year from the phasedown and that the cumulative growth rate is sensitive to the distributions.
Councilors said they will follow up in budget hearings for line‑by‑line explanations and asked for written detail on which funds and line items account for the claimed $35 million in net savings. The administration agreed to provide the requested breakdowns and supporting schedules during subsequent budget briefings.
The council did not take a final vote on the budget at the April 6 meeting; members said the questions raised in the session will be followed up in committee and in scheduled budget hearings.
