City Council’s Committee of the Whole Uncovers $11.8M Discrepancy in Mayor’s Proposed FY27 Budget
An assessment by the NM Department of Finance and Administration confirms Council Staff findings.
ALBUQUERQUE, NM – Tonight, the Albuquerque City Council’s Committee of the Whole (COW) convened for its third meeting regarding the Fiscal Year 2027 (FY27) Operating Budget. Led by District 9 City Councilor Renée Grout, Chair of the COW, the Committee moved forward with a budget substitute that addresses the City’s significant needs and includes an $11.8 million carry over discrepancy uncovered by City Council budget staff during its review the Mayor’s original budget proposal.
During the review process, City Council budget analysts identified that an $11.8 million ending balance from FY26 was not carried forward into the beginning fund balance for the FY27 column. After multiple internal reviews confirmed the finding, COW Chair Grout sought an independent assessment from the New Mexico Department of Finance and Administration (DFA).
The DFA, which holds statutory authority over municipal budgets under NMSA 6-6-1 through 6-6-19, confirmed the City Council Staff’s assessment. In their response, the DFA stated that a genuine projected surplus resulting from expenditure compliance is "generally considered a resource available to the City at the start of the next fiscal year."
"I have full confidence in our staff’s findings and the DFA's assessments, which agree that we have a starting fund balance of $19 million," said City Councilor Renée Grout. "That said, we've taken a conservative approach to this budget that doesn't allocate that funding aggressively but instead preserves flexibility by placing several appropriations in reserve. Every City Councilor said their first priority was to raise the salaries of our hardest-working City employees. When the fiscal year closes, we are assured that the funding is waiting for them."
The Committee’s substitute budget focuses on four pillars: employee compensation, fiscal responsibility, operational sustainability, and long-term financial planning. By correcting the $11.8 million omission, the City Council ensures that the City’s financial roadmap is based on verified, transparent data rather than conservative underestimations.
"My deep thanks to my fellow City Councilors and City Council Services Department staff who remained committed to the principles of responsible governance and transparency throughout the budget process," continued City Councilor Grout. "The allocations funding these key departments, alongside the adoption of our FY 2027 objectives, aligns our budgetary priorities and our strategic goals for the City. The passage of the City’s budget and the adoption of the City’s one-year objectives will move our City forward."