Councilors backed nearly $16 million in cuts while preserving employee raises and restoring full funding for LCPS community schools

Damien Willis, Organ Mountain News

LAS CRUCES - The Las Cruces City Council unanimously approved a $586.3 million municipal budget Monday for fiscal year 2027, while city leaders warned that rising personnel and insurance costs are forcing difficult long-term financial decisions.

The budget, which takes effect July 1, includes nearly $167.9 million for the city’s general fund, which supports core services such as public safety, public works and parks and recreation. Personnel costs account for nearly 75% of the general fund and include a 2% general wage increase for employees alongside an 18% increase in insurance premiums.

City staff said they reduced general fund expenditures by nearly $16 million in personnel, operating and other costs since April budget discussions in an effort to maintain a stable fund balance entering the new fiscal year.

Much of Monday’s discussion centered not on the size of the budget itself, but on whether the city’s current spending trajectory is sustainable in future years.

Councilor Michael Harris warned against relying solely on operational cuts or vacancy savings to balance future budgets.

“It does seem like positions are vacant, things are still getting done with those vacant positions obviously it is not ideal,” Harris said during a budget work session included in the council packet. “It seems like we probably need to do both things from just a financial sustainability perspective.”

Councilor Becky Corran described rising insurance costs as a major pressure point in the city’s finances while defending continued investments in city employees.

“I have no regrets about increasing our staff salaries or our contributions to insurance,” Corran said.

Councilor William Mattiace raised concerns about the city’s long-term financial outlook, particularly regarding the Telshor Fund and future obligations.

“What will the city do with a zero Telshor Fund?” Mattiace asked during the work session.

Mayor Eric Enriquez said the city may need to rethink vacancies and operational spending moving forward while allowing exceptions for critical positions and services.

“We have to make some adjustments,” Enriquez said. “That is the starting point.”

The council ultimately supported a plan that combined vacancy savings with operational reductions rather than relying exclusively on one approach.

Before approving the final budget, councilors also unanimously amended the proposal to restore annual funding for Las Cruces Public Schools’ community schools program to $150,000 instead of reducing it to $90,000.

In addition to the general fund, the adopted municipal budget includes:

• nearly $199 million for enterprise funds supporting utilities, transit and the airport
• $96 million for capital projects
• $55.1 million in special revenue funds
• $36.8 million in trust and custodial funds
• and nearly $21 million for debt service.

The budget must be submitted to the New Mexico Department of Finance and Administration by June 1.

The May 18 meeting and all City Council meetings can be viewed on the City's YouTube channel.

Damien Willis is founder and editor of Organ Mountain News. If you have a personal story to share or a lead we should follow up on, reach out at OrganMountainNews@gmail.com or connect with him on X at @damienwillis.