By RANDALL RYTI
Chair
Los Alamos County Council 

The annual budget hearings are scheduled for April 27, 28, and 29. The proposed FY2027 budget for Los Alamos County reflects a necessary shift in fiscal strategy—one that acknowledges a new economic reality after several years of unusually strong revenue growth.

At its core, this budget is about stabilization. Gross Receipts Tax (GRT), which accounts for roughly three-quarters of the County’s General Fund revenue, has proven to be volatile. After peaking in the post-pandemic period, revenues declined sharply—down nearly 18% in FY2025, with further decreases projected. The Council’s and County’s response—a GRT rate increase paired with tighter spending—is not about expansion, but about aligning ongoing costs with reliable, recurring revenue.

Equally important is the decision to strengthen reserves. Increasing the target General Fund reserve from 20% to 25% is a move that will better position the County to weather future downturns without abrupt service cuts or emergency measures. In an environment defined by uncertainty, this kind of fiscal discipline matters.

The budget also reflects a notable shift in priorities. Total expenditures are decreasing, driven largely by reduced capital spending. Rather than pursuing new facilities, the County is focusing on maintaining and modernizing existing infrastructure. This is a reasonable response that prioritizes long-term sustainability over short-term expansion.

At the same time, the County continues to invest in key community priorities. Housing development, small business support, community health and social services, infrastructure improvements, and environmental initiatives—including major solar and energy projects—remain central to the County’s strategic direction.

Public safety investments and quality-of-life improvements, such as trails and recreation, also continue to be important. If revenues are greater than the projections, then the financial policy prioritizes one-time funding for infrastructure improvements and support for workforce housing and local businesses.

That said, challenges remain. Some funds, particularly those tied to economic development, lack stable, recurring revenue streams and rely heavily on transfers and one-time sources. Utility rate increases, especially the significant rise in gas rates, will also have real impacts on residents and businesses and deserve careful monitoring.

Overall, this budget represents a disciplined and forward-looking approach. It recognizes that the County can no longer rely on exceptional revenue growth and instead must build a more resilient financial foundation. While not without trade-offs, the FY2027 budget strikes a reasonable balance between maintaining essential services, investing in the community’s future, and preparing for economic uncertainty.

You can find the Citizen’s guide and the complete FY2027 budget book on the County’s web pages. You can see what capital projects are being considered in FY2027 and FY2028 and read the revised financial policy. If you have any comments or suggestions, you can email the County Council at CountyCouncil@losalamosnm.gov. You can also make public comment at the start of each budget hearing session later this month, either in person or online.

Some other upcoming engagement opportunities and meetings that might be of interest are:

• Phases 3 and 4 of the process for updating the comprehensive plan are coming soon;
• Later in the year look for proposed changes to the development code based on the updated comprehensive plan;
• Updates to the temporary sign code will be coming to the Planning and Zoning;
• Commission and then to Council for discussion and possible adoption in the next few months; and
• May 12 Council Work Session will include an update on road safety and any changes based on the Council actions taken last year.

I hope to see you at a future Council meeting and please let me or the entire Council know if you have any comments on this letter at randall.ryti@losalamosnm.gov or CountyCouncil@losalamosnm.gov.