Tucson adopts FY27 balanced budget with $18M in employee pay raises, council urges long-term transit funding plan

The Tucson City Council adopted the city’s fiscal year 2027 budget on June 9, approving a balanced plan the manager described as preserving core services while advancing personnel pay equity and key capital needs.

City officials said the plan includes a market-pay and pay-equity package totaling roughly $18 million across funds, continued support for public safety and parks, and funding to sustain special revenue operations such as Tucson Water and the region’s transportation commitments. Assistant City Manager and CFO Anna Rosenberry described the budget as the result of numerous study sessions and staff work over months.

Council debate focused on funding trade-offs and longer-term structural questions. Several members and staff praised the work that produced a balanced plan after the city earlier faced large projected deficits. At the same time, some members urged a public conversation about long-term transit funding after the city again subsidized Sun Tran operations with a six‑figure general fund transfer. Council Member Lee voted against the budget, saying the city still needs a durable plan to reduce general‑fund dependence on transit support.

The council adopted the budget in a special meeting held to meet state requirements for budget adoption. The motion passed 6–1. Staff will proceed with the budget as adopted and return to the council with implementation details and routine reporting on key metrics.

What’s next: The city manager will publish the final budget documents and begin carrying out planned hires and capital projects included in FY27. Council members asked for regular updates on transit subsidies and on measures to reduce long‑term pressure on the general fund.