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By Jesse Jones — City Desk in The Paper. — Division has split Albuquerque City Hall as a clash is erupting between the City Council and Mayor Tim Keller’s administration over an $11.8 million discrepancy council staff uncovered in the city’s financial projections while reviewing the mayor’s proposed $1.4 billion fiscal year 2027 budget. It changed the budget math, allowing the council to restore 272 city positions that the mayor’s proposal had deactivated while increasing reserves. During a heated Committee of the Whole meeting Thursday night, the executive and legislative branches clashed over whether this newfound cash actually exists.
The clash comes from Chairperson Renée Grout’s substitute budget, which councilors unanimously approved with amendments. Council staff said they found an $11.8 million ending balance from FY2026 that was not carried into the proposed FY27 starting fund balance. She said her staff consulted the Local Government Division of the New Mexico Department of Finance and Administration (DFA), which advised that treating the projected savings as available revenue for the next fiscal year was a “reasonable” approach. In an interview with City Desk, Grout said the found money helped the council preserve core services, remove proposed surcharges for stormwater, solid waste and the BioPark and fund compensation study recommendations aimed at raising full-time employee pay to the 25th percentile. She said councilors did not want to raise fees, as families continue to face higher costs, and argued that the mayor’s proposed fee increases were not backed by council legislation.
The administration pushed back against what it labeled “high-risk” amendments, warning of dire consequences. Chief Financial Officer Carla Martinez challenged the council’s claims of state support, noting a DFA deputy director was unaware of any such conversations. In a press release, the administration stated the council’s “outdated data” would endanger key city programs. Martinez warned the $11.8 million “unrealized amount” could trigger layoffs and bond rating damage. The meeting turned personal as Councilor Dan Lewis accused Martinez of calling budget staff liars; Martinez told Lewis, “Please don’t put words in my mouth,” and said she was simply asking who council staff had spoken with at DFA and for written proof of their claims.
The FY27 substitute budget now moves to the full City Council after approval by the Committee of the Whole. Councilors can still offer amendments before final passage. They are set to debate and vote on the amended substitute at the May 18 meeting, which now includes the disputed funds, along with other newly adopted changes. The council is expected to take final action Monday.
If the council passes its substitute budget, Keller could veto it. If he does strike it down, the budget would go back to the council, which would need a supermajority of six of the nine members to override the veto and adopt its version. If the council does not pass a budget at the May 18 meeting, members are expected to try again at a tentatively scheduled May 27 meeting. If they still cannot agree, Keller’s proposed budget would become final and go to the state for approval by June 1.
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