ABQ. City Council Passes Amended $1.47 Billion Budget After Skirmish With Mayor Keller Over $11.8 Million Discrepancy; Council Enacts One Year Objectives Resolution; Mayor Approves Budget Without Signing And No Line Item Vetos |

On May 18, 2026 the Albuquerque City Council voted to approve the City’s Fiscal Year 2027 budget with the passage of R-26-17, which appropriates $1.5 billion for operating the City Of Albuquerque for Fiscal Year 2027, and R-26-28, which set the One Year Objectives for the City of Albuquerque for Fiscal Year 2027.

https://www.cabq.gov/dfa/documents/fy27-proposed-budget-with-weblink-final-4-01-2026.pdf

(EDITOR’S NOTE: A slight delay occurred with the publication of this article because of reporting on the 2026 Primary election.)

The city council approved its amended version of the $1.47 billion budget on a 7-2 vote. Voting YES to approve the 2027 city budget were Democrat City Councilors Klarissa J. Peña, Joaquín Baca, Tammy Feibelkorn, Nichole Rogers, Stephanie Telles and Republicans Dan Champine and Renee Grout. Voting NO were Republican City Councilors Dan Lewis and Brook Bassan. The City Council worked through multiple amendments to the budget during a lengthy meeting before adopting it.

OVERVIEW OF ENACTED 2027 FISCAL YEAR BUDGET (R-26-17)

There are 27 City Departments and each budget is reviewed by the council by what is called the committee of the whole made up of all city councilors. The city budget is what is called a performance based budget. Through out the year, city departments are tasked with compiling statistics and information on the departments to justify budgets and increases or decreases in personnel levels.

The City Council signed off on $882 million in general fund appropriations for the fiscal year that begins on July 1 and ends June 31. The general fund is primarily funded by gross receipts tax dollars and it covers basic city services such as the police and fire departments and park maintenance.

The approved 2027 general fund budget is around $23 million, or 2.6%, more than fiscal year 2026 and it is about $7 million more than in Mayor Keller’s originally proposed 2027 budget. The approved total budget, which came in lower than the $1.5 billion 2026 budget, marked the first year the city’s budget has declined since 2024.

In Keller’s proposed budget, city operating funds decreased by $35 million because of inflation, higher healthcare costs and federal funding cuts. To make those cuts, Keller’s proposed budget eliminated or deactivated 247 positions, many of which were restored by councilors in their budget substitute. Councilors also restored some funding to several departments, like transit, animal welfare and parks and recreation, that saw decreases in Keller’s proposed budget.

The City Council left the largest department budgets untouched such as the Albuquerque Police Department (APD) and Fire and Rescue (AFRD). APD makes up 32% of the general fund appropriations and the city council approved a 2% increase in its budget. AFRD makes up 16% of the general fund appropriations and the council approved a 4% increase in its budget.

Mayor Tim Keller originally proposed cutting close to $35 million from the proposed new city budget, eliminating roughly 250 city worker positions and increasing some city fees. The spending plan sparked arguments, including over the budget for the Animal Welfare Department. Debate occurred over funding for the city’s “Vision Zero” to improve pedestrian and traffic safety.

The Committee Substitute Budget Resolution (R-26-17), sponsored by Budget Chair Councilor Renee Grout, passed by the council restores or increases funding in several operational areas. Those areas include Code Enforcement staffing, Animal Welfare field services, Open Space staffing, transit operators and mechanics, Senior Affairs staffing support at the Conway Wood Multigenerational Center, park maintenance funding, cybersecurity investments, and increased funding for the Office of Inspector General. The approved budget includes recurring funding for BioPark Zoo animal food, and long-needed Library IT operational support. It includes operational support for Transit Department services.

Councilors said the final budget prioritizes the city’s five year goals. The adopted budget outlines funding priorities across several areas, including public safety, infrastructure, transit services, community development, environmental protection, human and family services and city workforce support.

City leaders said the budget maintains investments in essential services while addressing workforce needs and operational demands in a difficult financial environment. Funding was also directed toward improving permitting and development processes and preserving long-term infrastructure priorities. City leaders say the plan is intended to maintain current services while supporting long-term goals for Albuquerque. City staff will monitor progress on those goals throughout the fiscal year and provide updates to the council.

During the budget review process, Councilors identified concerns regarding the presentation and treatment of projected available fund balance amounts within the General Fund. The Committee Substitute preserves fiscal flexibility through reserve mechanisms tied to year-end expenditure performance and audited financial results.

The adopted amended budget maintains the Council’s focus on improving permitting and development processes, supporting essential City services, and maintaining long-term infrastructure investment priorities.

PUBLIC SAFETY DEPARTMENTS AN THE UNHOUSED

Under the city council’s approved fiscal year ‘27 budget, public safety and increased services to the unhoused remain the City’s top priorities in the approved budget. The approved budget directs more resources to frontline response in the 3 public safety departments as follows:

ALBUQUERQUE POLICE DEPARTMENT (APD)

The proposed APD budget was increased by 2% in the 2027 fiscal year to about $278.2 million and comprise nearly 32% of the city’s general fund appropriations. The APD budget calls for $3.8 million to support staff raises, subject to police union negotiations. APD cut eight command staff and 52 civilian positions for a total savings of $5.9 million and doubled the number of funded positions for police service aides from 50 to 100. The budget calls for 1,100 sworn officer positions. In November, APD had 901 sworn officers.

APD resources are being shifted from administrative command structures into field operations. The department identified redundant or non-critical positions and reduced command staff by 8 positions generating savings that have been reinvested to fund 100 Police Service Aides, allowing sworn officers to focus on core law enforcement duties. APD also continues recruitment and retention efforts toward a goal of 1,100 sworn officer positions and is transitioning 43 existing sworn personnel into field operations.

ALBUQUERQUE FIRE RESCUE (AFR)

The Albuquerque Fire Rescue approved budget includes $4.4 million for a negotiated wage increase for firefighters. Overtime appropriations were increased by $409,000. AFR staffing is expected to remain essentially unchanged at 828 full-time positions. The AFR proposed FY27 budget will prioritize field response by realigning staffing and reducing reliance on overtime, including integrating support personnel into regular field operations to strengthen coverage city-wide while containing costs. AFR will also see its highest pay increases in city history.

ALBUQUERQUE COMMUNITY SAFETY (ACS)

Albuquerque Community Safety (ACS) was given a 10.5% budget increase to $19.8 million for the 2027 fiscal year, including $261,000 for raises. The budget increase is intended to increase field response and street outreach. ACS personnel have backgrounds as social workers, clinicians and counselors and respond to 911 calls reporting people suffering from addiction, homelessness and mental health emergencies. The approved budget would fund 156 full-time positions, up from 142 currently. The ACS department will have a $2 million investment to expand field response and double the size of its Street Outreach Team, freeing up APD officers and strengthening the City’s ability to respond to behavioral health calls and homelessness with specialized, civilian-led interventions. $500,000 would be reallocated for motel vouchers.

HOMELESSNESS, HOUSING, AND BEHAVIORAL HEALTH

The council approved FY27 budget continues to build a coordinated system of care designed to move individuals from crisis to stability through outreach, shelter, treatment, and housing. The coordinated system is know as the Gateway system.

The approved FY27 budget increases funding by 9.5% to $48.9 million for the city’s Health, Housing and Homelessness Department, and fully funds the Gateway System of Care for the unhouse. The council approved FY27 budget includes $8 million for affordable housing vouchers. The approved budget contains funding for 98 full-time positions, of which 78 are paid from the city’s general fund. Another 20 personnel are paid by grant funding.

The Gateway System is fully funded under the FY27 budget to ensure operational stability as services continue to come online, supporting shelter, treatment, and housing pathways for those most in need. Expanded outreach through ACS will strengthen connections into this system and improve coordination across services.

The Gateway System of support for people struggling with homelessness and drug and substance addiction consists of the following:

Gateway Center– (Located on Gibson.) Campus providing medical, behavioral, and social services including overnight beds, first responder intake, medical sobering and respite. Old Lovelace Hospital city purchased for $15 million costing $95 million to remodel into shelter and supposedly providing assistance to upwards of 1,000 unhoused per month.
Gateway West – Safe, supportive 660-bed facility for individuals experiencing homelessness, offering specialized resources and case management. (Annual Impact: 5,700 Individuals. Open 24/7 Since 2019)
Gateway Family – Supportive housing center for families with overnight beds, meals, and case management to help achieve stable housing. (Annual Impact: 987 Individuals Open Since 2020.
Gateway Recovery– 50-resident micro-community offering low-barrier beds, recovery services, and support for 18 – 24 months. Annual projected Impact: 50 – 100.
Gateway Young Adult – Housing and support for young adults ages 15-25 experiencing homelessness, tailored to their unique needs. Annual projected Impact: 120 Individuals. On March 25, the city opened the $17 million transitional housing facility for homeless youth

https://www.cabq.gov/health-housing-homelessness/gateway-system-of-care

The Health, Housing and Homelessness Department budget also includes targeted investments, like $500,000 in reallocated funding to support motel vouchers through expanded outreach efforts, providing immediate, flexible shelter options in partnership with Albuquerque Community Safety Department (ACS).

NEW DIVERSION INITIATIVE

The City Council cut Mayor Keller’s new diversion initiative for the unhoused in half from $400,000 to $200,000. The new program will be led by the City Attorney’s Office and designed to address the cycle of low-level, non-violent offenses that often result in brief and ineffective periods of detention without treatment or long-term resolution. Under this diversion program, eligible individuals will be assessed by a social worker or case manager at the point of prosecution and offered structured diversion options, including shelter intake, case management, substance use or mental health treatment, or other supportive services.

This approach shifts the City’s response from a system that cycles individuals through arrest and release to one that uses legal intervention as a pathway into services, while maintaining accountability for participation. By aligning enforcement with treatment and housing resources, the program is designed to reduce recidivism, decrease strain on the courts and detention system, and improve outcomes for individuals experiencing homelessness and behavioral health challenges.

COUNCIL’S INCREASED BUDGET AMENDMENTS

City Council discussions and debate focused on balancing proposed spending budget amendments and adjustments while keeping essential departments and programs fully funded. Throughout the May 18 City council meeting, city councilors tried to create balance between proposed budget cuts and ensuring departments and programs are funded properly.

The City Council passed more than a dozen amendments, including one clarifying voucher cuts and others funding priorities in their districts and addressing public concerns. The City Council’s substitute budget was passed with $1.5 million in funding cuts to housing vouchers, one of the larger changes to Keller’s proposed budget.

An amendment sponsored by Grout, Fiebelkorn and Joaquín Baca restored $200,000 of the requested $400,000 to a diversion program tailored to the unhoused who are facing criminal charges and to provide them alternative services to jailing.

An amendment addressed concerns over voucher cuts, clarifying that 2026 vouchers were not fully expended and if they run out mid-year “will be prioritized by the Council.”

Another amendment removed council funding cuts to “Vision Zero”, allowing for millions to be made available for a list of projects like pedestrian crossing signals and a road diet on Lomas Boulevard, among others.

CLASH OVER $11.8 MILLION DISCREPANCY

The approval of the operating budget occurred days after the City Council and the Keller administration clashed over an identified $11.8 million discrepancy in Mayor Tim Keller’s initial budget proposal. $11.8 million discrepancy was discovered by council in the city’s financial projections while reviewing the mayor’s proposed $1.4 billion fiscal year 2027 budget. The identified discrepancy changed the budget math and it allowed the council to restore 272 city positions that Mayor Keller’s propose budget had deactivated while increasing reserves. During a heated Committee of the Whole meeting, the executive and legislative branches clashed over whether this newfound cash actually exists.

The majority of the disputed $11.8 million, which makes up 1% of the general fund appropriations, was put toward city employee raises, with $4.5 million for a 1% cost-of-living increase and $3.7 million toward compensation adjustments. The leftover $3.6 million was used for other priorities, including traffic safety projects.

The clash occurred after the introduction of Councilor Renée Grout’s substitute budget resolution, which councilors unanimously approved with amendments. Council staff said they found an $11.8 million ending balance from FY2026 that was not carried into the proposed FY27 starting fund balance. Grout said her staff consulted the Local Government Division of the New Mexico Department of Finance and Administration (DFA), which advised that treating the projected savings as available revenue for the next fiscal year was a “reasonable” approach. Grout told the on line news agency City Desk that finding the funding helped the council preserve core services, remove proposed surcharges for stormwater, solid waste and the BioPark and fund compensation study recommendations aimed at raising full-time employee pay to the 25th percentile. She said councilors did not want to raise fees, as families continue to face higher costs, and argued that the mayor’s proposed fee increases were not backed by council legislation.

The administration pushed back against what it labeled “high-risk” amendments, warning of dire consequences. Chief Financial Officer Carla Martinez challenged the council’s claims of state support, noting a DFA deputy director was unaware of any such conversations. In a press release, the administration stated the council’s “outdated data” would endanger key city programs. Martinez warned the $11.8 million “unrealized amount” could trigger layoffs and bond rating damage. The meeting turned personal as Councilor Dan Lewis accused Martinez of calling budget staff liars; Martinez told Lewis, “Please don’t put words in my mouth,” and said she was simply asking who council staff had spoken with at DFA and for written proof of their claims.

ENACTMENT OF CITY’S ONE YEAR OBJECTIVES ( R-26-28)

In addition to passage of the City’s Fiscal Year 2027 budget through the passage of R-26-17, the City Council passed Resolution R-26-28, which establishes the City’s one-year objectives. The resolution R-26-28 sets the one-year objectives for the City of Albuquerque and is mandated by the City Charter and Budget Ordinance, requiring the Council to annually review and adopt the objectives, which are aligned with the City’s broader five-year goals.

Mandated by the City Charter, these objectives ensure that taxpayer dollars are tied to tangible outcomes across eight primary five-year goals:

Human and Family Development
Public Safety
Public Infrastructure
Sustainable Community Development
Environmental Protection
Economic Vitality
Community and Cultural Engagement
Governmental Excellence and Effectiveness

City Councilor Renee Grout explained the significance of the passage of both R-26-28 and R-26-17 this way:

“These objectives provide clear direction for the Administration and allow the City Council to effectively monitor progress throughout the fiscal year. … They ensure that our budgetary allocations are directly tied to achieving tangible outcomes for our City and our neighbors. … Councilors can now effectively monitor progress throughout the fiscal year. .., They ensure that our budgetary allocations are directly tied to achieving tangible outcomes for our City and our neighbors. …”

City Council staff will actively monitor and report on the progress of these objectives throughout F/Y27. Furthermore, the resolution requires the Administration to provide a report on the accomplishments and challenges related to the F/Y 2026 objectives within 90 days, reinforcing the City Council’s commitment to accountability and continuous improvement.

CITY COUNCILORS AND MAYOR REACT TO BUDGET PASSAGE

District 9 City Councilor Renée Grout, the Chair of the City Council’s Committee of the Whole (COW), emphasized the significance of the enactment of both City’s Fiscal Year 2027 budget through the passage of R-26-17 City Council passage of Resolution R-26-28 establishing the City’s one-year objectives. Grout said this:

“[This budget] was an historic ninth budget from this administration. I don’t know if there’s ever been a budget with this many discrepancies and outright omissions. … The most important thing is having a structural, accurate, and balanced budget that’s transparent and meets the needs of our citizens. The passage of the City’s largest-ever budget and the adoption of the City’s one-year objectives move our City forward.”

“We’ve Prioritized public safety, including increasing funds to Animal Welfare and Code Enforcement Departments, protected the City’s lowest paid employees by bringing their compensation up to the 25^th percentile based on the Evergreen study, and provides a 1% across the board increase for a total of 3% for our front-line workers. The allocation of funds to these key departments, alongside the adoption of our FY 2027 objectives, aligns our budgetary priorities and our strategic goals for the City.”

“The Council’s goal was to produce a more structurally sustainable budget that balances workforce needs, operational realities, and fiscal reserves in an increasingly constrained revenue environment “This is a working budget that reflects extensive review, significant discussion, and the Council’s responsibility to ensure long-term financial stability for the City.”

Democrat Councilor Tammy Fiebelkorn, who voted to approve the budget, said she saw the process as a “give and take” and she was happy the council could restore funding for transit, open space and animal welfare, the last of which saved six positions and covered the stray cat trap and neuter program. Feiblekorn said this:

“I didn’t get everything I wanted, but neither did anyone else, and I think that’s to be expected when there are nine councilors and a mayor vying for resources. This year, we had very limited resources, so I think the juggling of priorities was harder this year than in past years. … [I am] continually dismayed by the amount put into the larger departments while others faced cuts. … We are always willing to cut transit, we are always willing to cut parks and recreation and open space. … These are also really important departments in our city, but we continue to just put more and more and more money into APD, and I just wonder at what point we’re going to stop doing that.”

Mayor Tim Keller for his part said changes made during the council’s budget process helped preserve several critical programs and investments but added he remains “deeply concerned” that this budget may not be balanced. Keller said the council’s amendments fixed “some major issues” in its original plan, including restoring funding the council had initially removed from traffic safety projects and halfway funding a diversion program to address those unhoused who are facing criminal charges and jail for city code violations.

Keller said this in a statement following the City’s Council vote:

“The amendments tonight did a lot to save this budget and the critical investments it represents. In the short term, we saved the diversion program for the unhoused, protected investments in pedestrian safety, and took a real step toward frontline worker pay. But I remain deeply concerned that this budget may not be balanced. It’s built on shaky ground with uncertain forecasts and high-risk assumptions that may require major revisions, even cuts by early fall. We have to work together on long-term structural stability so we can protect core services, support our workers, and keep Albuquerque moving forward.”

Republican City Councilor Dan Lewis, who voted NO on the budget adoption, said in a statement after the vote that he supported the amendments that gave raises to city employees and eliminated proposed fee increases, like a fee Keller had proposed for providing stormwater services. However, Lewis said this:

“I could not support the final budget because it will only increase projected deficits in future years. This budget is filled with extravagant spending on the mayor’s pet projects and programs that have shown no measurable results in addressing the city’s crime, homelessness, and economic challenges.”

COMMENTARY AND ANALYSIS

The single most important function of the Albuquerque City Council is enactment each fiscal year of the annual city operating budget that commences July 1 and ends June 30 each year.

The City Council budget process is one of the very few times that city council can bore deep down into each of the city department budgets. All too often, Mayor’s and their political operatives view the City Council more of an annoyance as opposed to being a legitimate oversight function.

All to often, it becomes a process of members of the City Council asking the Mayor and his top executives the main question “What is it in this budget do you not want us to know about?” or to put it in a more crass way “What is it that you are hiding in this budget or lying about?”

For the previous 8 years, and throughout Mayor Tim Keller’s two terms, the city council has essentially acted as a rubber stamp giving Keller essentially all he wanted, even a tax increase the first year as he was Mayor in 2017. Keller’s concern that the enacted budget “may not be balanced” is laughable. By law the budget is required to be a balanced budget with no deficit spending based on projected revenues and the city council retains all control over city finances and can amend, adjust or reduce expenditures any time they want and as the need demands.

This year, the city council exercised sound financial judgment with their enactment of the 2027 budget. Simply put, the City Council did their job.

On June 9, it was reported that Mayor Tim Keller allowed the 10-day signing deadline for the enacted budget to pass without any line item vetoes. The budget become law without his signature and employee raises will move forward. Under city charter rules, the budget automatically took effect once that deadline expired. But Keller made sure to distance himself from the Council’s math, stating, “The budget will become law, though I remain concerned about the Council’s decision to build it around an overly-optimistic forecast that could put core services at risk.”