Anchorage Mayor Suzanne LaFrance unveiled a proposed $656.9 million operating budget for 2026 on October 2, emphasizing fiscal restraint while prioritizing public safety and addressing homelessness amid warnings of a looming “fiscal cliff.” The plan, largely flat compared to 2025, stays $175,000 under the property tax cap, avoiding a mill rate increase despite pressures from inflation, population stagnation, and declining state funding. Property taxes remain the dominant revenue source at over 62%, totaling about $391 million, with other key streams including room taxes ($44 million) and tobacco taxes ($21 million).
Public safety dominates expenditures, with the Anchorage Police Department allocated $151.3 million (22.7% of direct costs) and the Fire Department $132 million (19.8%). A significant focus is homelessness, with nearly $27 million embedded across departments—$10.4 million for Health Department shelters, outreach, and mental health contracts; $4.6 million for non-congregate winter shelters; and additional funds for police encampment response ($4 million), fire crisis teams ($4.4 million), and parks cleanup ($822,000). This equates to roughly 4.1% of the budget, aiming to provide year-round support and camp abatement.
Diversity, equity, and inclusion (DEI) initiatives receive $2.1 million municipality-wide, including $431,000 for the Equity & Inclusion Department to handle data, training, and community forums; $771,000 for the Equal Rights Commission; and embedded costs in human resources ($275,000) and police bias training ($300,000). Per household, this represents about $19 annually based on median property taxes of $3,555.
Residents may see no direct tax hike, but rising home values could drive up property tax to bills for average households. The budget projects a $61 million cumulative deficit by 2031 without new revenues, potentially leading to service cuts.
“We narrowly avoided cuts and service reductions in the 2026 budget proposal,” Mayor LaFrance said in a press briefing.
DEI? Did she miss the message. Racism fostered by the government is out.
lafarce just does not get it, but then again, she/it is a libratard, so no surprise!
Clown clown clown. That’s who voted in
Not Grown ups ,
Why was there no mention on how they spend on education? 27mil for homeless people is far cheaper than than Fairbanks proposed 33mil for homeless pets.
I love our police and fire but truly wonder
Why the amount We spend On police budget has Little Effect on crime. Seems maybe leadership should listen to cops on the streets not their leadership with bloated salaries!