Staff present 25‑year budget context: decline in state grants and bond history

OMB staff gave members a historical overview of municipal revenues and capital investment to provide context for FY26 budget choices.

The presentation highlighted two long‑term trends: a marked reduction in state legislative grant funding after 2012 and the pattern of voter‑approved bonds over the last 25 years. Staff noted the city once received large legislative grants—years with totals in the low hundreds of millions—but that “after 2012, all of that funding basically dried up,” leaving a sustained shortfall for infrastructure investment.

Staff showed a 25‑year bond history used for roads and transit ($900 million), public safety ($125 million), and other categories including parks, library and museum ($83 million). They also pointed to a spike in legislative grants in 2022 associated with the Port of Alaska project (about $201 million), and explained that the modern absence of regular large state grants has increased pressure on local budgets and bond packages.

The historical budget and tax data sheet included 25–30 years of approved and revised budgets, changes in fund balance use and debt service, and demonstrated how fund balance has been applied in many years to balance the budget. Staff said digesting the long‑term figures helps members understand the persistence of infrastructure and service funding challenges.

No action was taken; staff provided the materials as background for members to use when setting FY26 priorities.