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AR 2026-275 2027-2032 six-year fiscal program

At a glance

  • Nov 4: second public hearing on AR 2026-275 was on the November 4 agenda; outcome not yet confirmed.
  • What: AR 2026-275 is the 2027-2032 six-year fiscal program, the budget book's projection of revenues, costs and deficits for the years after 2027. At the Oct 16 work session the budget office used it to explain the outlook behind the 2027 budget.
  • Where it stands: first public hearing held Oct 20 (see 2027 Capital Improvement Budget and 2027-2032 CIP); second hearing noticed for Nov 4. No Assembly action yet.
  • The outlook: a 2028 gap projected at 15 to 30 million dollars. The six-year table shows 14.4 million (2028), 19.1 million (2029) and 23.4 million (2030), but Browse stressed it leaves out pay step progressions (about 5 million dollars in the 2027 budget), so 2028 could reach 19 to 30 million.
  • Table assumptions: 3 percent inflation, population flat at 291,000, 500,000 dollars of state community assistance, a 300,000 dollar hydropower dividend, 2 percent growth in other revenue, no fund balance use, no new federal or state money, and about 200,000 dollars of headroom under the tax cap. School district taxes and program grants are excluded.
  • Scenario planning: departments were asked for flat budgets plus a 5 percent direct-cost cut scenario; the difference is about 30 million dollars, and the administration expects whole programs would end rather than many being trimmed.
  • Tools discussed: one-time funds (the ML&P sale fund is gone after 2027), new revenue through voter-approved levies or tax cap changes (any proposal would need to reach the ballot process before January), and service level budgeting. The administration and Assembly are planning an Oct 30 fiscal future event.

Main points raised

  • Perez-Verdia asked the administration to define core services versus programs and projects; Browse said legal requirements and public expectations differ and asked the Assembly and public to say what is core.
  • Baldwin Day warned that under the tax cap formula every cut is permanent and the budget ratchets down; Browse said gaps recur every 10 to 20 years (1993, 2007).
  • Park asked about a police levy and about state money (not budgeted; first quarter revisions will show what arrives). Handeland asked about the Assembly's freedom to change contracts: service contracts are subject to appropriation, while labor (about 60 percent of costs) must be renegotiated.
  • Baldwin Day asked about a 12.2 million dollar "fund balance applied" line in 2028; Browse said it reflects departments repaying the cost of the SAP system through internal charges. Brawley suggested a Budget and Finance Committee session on it in December.
  • The school district's budget and bonds are a separate process; Browse said the district's 2028 projection looks resolvable.

Sources

Discussion time

About 41 minutes across 1 meeting (from transcript timestamps; approximate).

Meeting Minutes
2026-10-16 - Assembly Worksession 41

Log

  • 2026-10-16 - 2026-10-16 - Assembly Worksession: budget office walked through the six-year table and its assumptions; 2028 gap put at 15 to 30 million dollars; discussion of core services, the tax cap ratchet, levies and contract obligations.
  • 2026-11-04 - 2026-11-04 - Assembly Regular Meeting: second public hearing on AR 2026-275; outcome and vote not yet confirmed.