Mayor LaFrance proposes 2026 municipal budget

Mayor Suzanne LaFrance and her team on Thursday brought forward the 2026 Municipality of Anchorage budget proposal.

The proposed 2026 operating budget funds core municipal services and continues targeted investments to help address our community's big challenges. It reflects tangible progress made by the LaFrance administration over the last year, from establishing a stable year-round shelter system to staffing up the Municipal Prosecutor's Office to strengthening our public safety and crisis response teams.

The budget proposal builds on this positive momentum with key investments in several priority areas.

"A budget is a blueprint for turning our values and priorities into action, and it guides how we move forward together as a community," said Mayor LaFrance. "This budget proposal represents my team's commitment to providing quality municipal services and building a safer, more affordable and thriving Anchorage for all."

Highlights from the 2026 Proposed Operating Budget:

• Continued investment in public safety to increase the number of sworn police officers, expand the use of technology, and support the Anchorage Fire Department.
• Continued investment in crisis response, including funding 24/7 operations of AFD's Mobile Crisis Team.
• Investing in housing solutions, neighborhood improvements, and removing or improving blighted or dilapidated properties.
• Resources for camp abatement and cleanup of our parks, trails and public spaces.
• Continued Anchorage Child Care and Early Education Fund investments to improve childcare access, stabilize the sector, and support the community workforce.

The mayor's $656.9 million operating proposal is a continuation from 2025 operations. It remains largely flat over last year, with minimal changes aside from required increases for labor and adjustments for inflation to maintain current services.

The Municipality has limited resources and is experiencing very tight funding. It is heavily dependent on property taxes, while the tax cap limits the amount of property taxes the Municipality can collect annually. State capital funding and revenue sharing dramatically decreased in the last decade, and federal funding is decreasing. Without a new source of revenue, residents will see reductions in services in future years.

"We narrowly avoided cuts and service reductions in the 2026 budget proposal. It's just not possible to meet the community's needs under the Municipality's current revenue structure," Mayor LaFrance said. "As it stands, residents will see cuts in future years. It's time for a serious conversation about what we can and can't afford if we continue on this path. This is our community. It's up to us to figure this out, together."

The capital budget supports the maintenance, improvement and development of key public infrastructure, from parks, trails and roads to public facilities, buildings, fleet vehicles and equipment. Each year, the Municipality issues bonds to pay for projects and upgrades. In some cases, proposed bond funds leverage matching state, federal and private dollars for projects. Bonds are paid back over time through property taxes.

Reduced state support has increased the Municipality's reliance on property taxes to pay for critical road and drainage maintenance and upkeep of the public facilities. This proposal is smaller than recent years and represents baseline critical investments in the infrastructure that supports our community.

Highlights from the 2026 Proposed Capital Budget:

• Critical road maintenance and drainage work and life/safety access roads.
• Traffic calming and pedestrian safety improvements.
• Critical safety upgrades at several Municipal buildings, including Loussac Library and the Chugiak-Eagle River Senior Center.
• Repairs and updates to neighborhood parks and trails.
• Replacement of fire equipment and repairs to police facilities.

The mayor's proposed budget will be submitted to the Anchorage Assembly on Thursday and will later be available to the public online at muni.org/​departments/budget​. Over the next several weeks, the Assembly will hold public work sessions on the budget and take public testimony during upcoming regular meetings. The Assembly is expected to amend and approve the budget at its November 18 meeting.

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​Contact: Emily Goodykoontz [email protected] 1 (907) 205-6683

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