ASHEVILLE — City leaders are confronting a projected budget shortfall of up to $30 million for the 2026-27 fiscal year, a gap that officials say will almost certainly require a combination of tax increases, higher fees, and cuts to city services.
The shortfall stems largely from one-time revenue fixes used to balance the current budget that cannot be repeated, compounded by rising costs in employee health care, public transit contracts, public safety staffing, and security at community centers.
City finance officials said the gap may be closer to $26 million once final revenue figures are tallied, but cautioned that the number remains fluid as departments complete their budget requests.
"This is not a small problem we can patch our way around," one city official said during a recent work session. "Structural changes to both revenue and expenditures are going to be necessary."
Among the areas drawing the most public concern is public transit. Asheville's bus system, which serves thousands of residents daily — many of whom rely on it as their sole means of transportation — could face service reductions if cuts are required.
Advocacy groups attended recent council work sessions urging members to protect transit funding, particularly as low-income and elderly riders continue recovering from the economic disruptions caused by Hurricane Helene.
The city is also grappling with elevated public safety staffing costs and increased security needs at municipal facilities, expenses that officials say cannot easily be deferred.
Budget work sessions are scheduled to continue through April, with department heads presenting detailed spending plans to the full City Council. A proposed budget is expected to be submitted on May 12, followed by a public comment period before final adoption.
Residents can participate in the process by attending public work sessions or submitting comments through the city's online budget portal. Council members have emphasized they want broad community input before making final decisions on cuts or revenue measures.