Anchorage Assembly to Vote on $692.5 Million Budget Despite $15 Million Gap

Anchorage City Assembly members will hold a second public hearing on Wednesday, November 4, to consider Mayor Suzanne LaFrance’s proposed fiscal year 2027 operating budget. The total amount stands at $692.5 million. The administration describes the plan as a continuation of current service levels, keeping spending roughly $34,000 below the property tax cap.

To close a gap of approximately $15 million, the city is drawing on one-time revenue sources. This includes about $8.4 million remaining from the sale of the Marine Logistics & Property (ML&P) facility. The plan also cuts funding for vacant positions. City officials warned that these one-time funds will be exhausted next year. They projected the shortfall could nearly double to around $30 million in 2028.

The proposed budget increases funding for the Equity & Inclusion department from $438,057 to $449,072. This represents a 2.5 percent increase. Nearly all of the added money covers salaries and benefits, which will rise to $388,066 for two full-time employees. Their duties include collecting equity benchmarks and tracking systemic disparities across municipal operations.

Public safety agencies receive modest budget increases. Police funding rises by about $2.4 million, while Fire receives an increase of nearly $4.9 million. The Maintenance and Operations division will shift toward more in-house snow removal. Homelessness programs continue with funding for crisis care, outreach, and shelter contracts.

The capital side of the proposal includes an $87.9 million bond package, excluding the school district. Funds would go to roads, drainage, parks, and fire equipment. Voters will decide on these bonds in April 2027. If approved, the city will repay the debt through property taxes.

Residents may speak to the Assembly in person during the November 4 meeting. They can also register for written or phone testimony at muni.org/testify. The Assembly expects to take final action on the budget on November 17.