Las Cruces City Council approves $586.3 million budget with cuts

LAS CRUCES, New Mexico (KVIA) -- Las Cruces City Council unanimously approved a fiscal year 2026-2027 budget. The budget, totaling $586.3 million for fiscal year 2027, starts July 1, the city said.

The budget included cuts to the public works department and a reduction in city services. This will reduce library hours and delay projects.

According to City Manager Ikani Taumoepeau, efforts to reduce spending also included a temporary hiring freeze.

Now, the city said almost 75% of the general fund will pay city personnel costs, including a 2% general wage increase.

Since a public hearing in April, staff reduced general spending by nearly $16 million in personnel costs, operating and other expenses, the city said.

The budget includes $167.9 million from the general fund, which gets revenue from gross receipts tax, cannabis excise tax and property tax, according to the city.

According to City Financer Lesley Doyle, without making these cuts, the city would empty its financial reserves by fiscal year 2029.

The city said the budget had to be filed with the state department of finance and administration by Monday.

You can read more about the budget below.