After years of overspending the City of Las Cruces, like Albuquerque, faces a budget deficit. There is a lot to unpack with the situation in Las Cruces. For starters, unlike Albuquerque which has lost people, Las Cruces continues to grow and has seen a 7.08% increase since the 2020 census. That means that the City can and should be able to grow its budget albeit at a reasonable and steady pace. Unfortunately, it looks like the City has overshot the mark:
- FY24: The city approved a $519 million budget, which at the time was the largest in city history, with a 9.4% increase in the general fund.
- FY25: The city adopted a $596 million budget that added 21 new positions and increased personnel spending by $10.2 million.
- The FY 26 budget was $612.2 million.
In other words, in just the span of three years Las Cruces spending rose by 18%.
The good news is that tax hikes do not seem to be part of the conversation at this point…