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Albuquerque Tracks Monthly Tax Revenue to Guide $1B+ Budget Adjustments
City staff track employment figures and tax collections to inform revenue forecasts and spending plans for the coming fiscal year.
How we reported this
Albuquerque city budget staff review monthly gross receipts tax distributions from the state to compare actual collections against the five-year revenue forecast used to build the annual budget.
The data helps the mayor and city council decide whether to adjust spending or revenue expectations when economic conditions shift, as occurred during the pandemic when conservative estimates proved lower than final results.
Employment and tax collections shape local revenue outlook
Officials in Albuquerque use seasonally adjusted unemployment rates for the metropolitan area that covers Bernalillo, Sandoval, Torrance and Valencia counties, along with sector-by-sector job counts from the U.S. Bureau of Labor Statistics, to update economic models. The Albuquerque rate fell from 6.9 percent in July to 5.9 percent in August while the national figure stood at 5.2 percent for July.
Gross receipts tax revenue, which made up 66.4 percent of the city’s General Fund and 35 percent of the entire operating budget in fiscal year 2022, arrives two months after the business activity month. July 2021 receipts, the first month of fiscal year 2022, rose 21.3 percent over the same month in 2020 and 4.6 percent over July 2019.
Key decisions ahead for revenue forecasting
City economists continue to compare actual gross receipts tax growth, measured by the state-shared 1.225 percent increment, against budgeted expectations each month. Fiscal year 2021 finished with 1.7 percent growth after an initial projection of negative 3.4 percent growth, prompting ongoing conservative assumptions as recovery continues.
Staff allocate portions of the tax to specific categories, including 0.25 percent for public safety and 0.375 percent for hold-harmless revenue within the General Fund, while 0.25 percent supports transportation infrastructure and 0.125 percent funds BioPark capital projects. Monthly tracking allows adjustments before the next budget cycle is finalized.
Residents can review the latest dashboard and linked growth charts at the city’s finance site to follow how these indicators influence upcoming spending choices.