Mayor Suzanne LaFrance commends the Anchorage Assembly's passage of the 2026 municipal budget package on Tuesday night.

The amended and approved 2026 Operating Budget is largely a continuation budget from 2025. It ensures essential municipal services are funded while making strategic investments in the community’s top priorities.

"This budget is a success forged through collaboration and fiscal discipline. Its approval is a powerful example of what the Administration and the Assembly can achieve when we work together," said Mayor LaFrance. "In the face of significant fiscal headwinds, we have a responsible plan for next year that maintains our core services like snowplowing, road maintenance, and public safety, while also investing in the future of our community."

The 2026 operating budget totals $656.8 million — approximately $198,000 below the tax cap. It focuses on addressing Anchorage's biggest challenges, including public safety and economic development, and builds on the positive momentum of the past year. Key investments include:

The Administration and many Assembly members have recognized the tight fiscal environment, noting the Municipality's heavy reliance on property taxes and the ongoing challenge posed by significantly reduced state funding and the existing property tax cap structure.

Reduced state support over the years has increased the Municipality’s reliance on property taxes to pay for operations and the upkeep of infrastructure, roads and facilities — all while the service and infrastructure needs of the community have grown. The Municipality is using one-time funding to fill the budget gap for 2026.

"We narrowly avoided most service reductions this year through diligent work and collaboration, but the reality remains: without new revenue, residents will face service cuts in future years,” said Mayor Lafrance. “The 2026 budget should serve as a call to action. If we want a safer, more affordable and thriving community, then it is up to all of us to figure out how to build a fiscally stable future for Anchorage, together.”

The 2026 Municipal Budget takes effect on January 1, 2026.