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From Staff Reports
ASHEVILLE, N.C. — Asheville faces a “significant” $30 million budget shortfall for fiscal year 2027 “due to higher expenses — health care, debt, post-hurricane recovery — and slower revenue growth, especially from sales tax,” triggering city officials to begin budget talks early to address the gap, “exacerbated by using one-time funds in FY26 and a looming property value revaluation,” AI Overview noted on Jan. 17.
To that end, Asheville City Council “received a sobering update on the city’s financial outlook during its Jan. 13, work session, revealing a projected $30 million gap between revenue and expenses for the 2027 budget,” Asheville television station WLOS (News 13) reported on Jan. 14.
“Director of Finance Tony McDowell attributed the shortfall to factors like rising health care costs, slower sales tax growth, and the lingering financial impacts of Helene,” News 13 stated.
“Other factors like the results of the county’s re-evaluation of property values will be part of our ongoing assessment,” News 13 quoted McDowell as saying.
The TV station added, “The city’s presentation also noted other expenses, including the need to execute a new transit contract, provide security at community centers, and budget for filled positions at the Asheville Police Department.
“McDowell said starting the budget process six weeks in advance with city council allows for more transparency and collaboration as they work toward solutions ahead of the June budget deadline,” News 13 stated.
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