Las Cruces Weighs Major Budget Cuts to Rein in Spending

City officials consider $15.8M in cuts, hiring freezes, and operations trims as general fund cash could run out by 2029.

Apr. 20, 2026 at 2:52am

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A serene, photorealistic painting of a municipal building in Las Cruces, New Mexico, with warm sunlight casting long shadows across the facade, conveying a sense of quiet contemplation about the city's budget challenges.Las Cruces officials must make tough choices to rein in spending and preserve the city's financial future.Las Cruces Today

Las Cruces city officials are contemplating a more austere budget for the next fiscal year after the finance director warned that current spending is on an unsustainable course. The proposed budget includes $180.7 million in general fund expenditures, a nearly 8% increase from last year, driven mainly by rising personnel costs. To address a projected $15.3 million gap between revenue and spending, the city is considering $7.8 million in savings from eliminating vacant positions and $8 million in operating cuts.

Why it matters

Las Cruces' general fund balances are projected to be depleted as soon as the 2029 fiscal year if the city does not make significant budget adjustments. This could put pressure on mandatory reserves and limit the city's ability to fund essential services in subsequent years.

The details

Finance Director Lesley Doyle outlined options for shaving $15.8 million in spending, including a combination of operating cuts and closing current job openings. The proposed budget includes $130.3 million in personnel costs and $50 million in operating costs. What began as a $6 million gap between revenue and spending in fiscal year 2024 has trended sharply upward, with the city proposing to spend $15.3 million more from the general fund than it would take in under the proposed budget.

  • The city tightened its belt in the middle of the current fiscal year after Doyle discovered an error that had caused the city to overstate its general fund balance.
  • The proposed budget for the next fiscal year will include 2% wage increases as planned.

The players

Lesley Doyle

Las Cruces' finance director who has been in the job just over a year and outlined options for budget cuts.

Eric Enriquez

The mayor of Las Cruces who recommended departments review solutions found during the COVID-19 pandemic of 2020-23 when he served as assistant city manager.

Michael Harris

A Las Cruces city councilor who suggested looking at budgeted vehicle purchases for less expensive options.

John Muñoz

A Las Cruces city councilor who recommended a review of costs for overtime.

Johana Bencomo

A Las Cruces city councilor who said she had no regrets about supporting wage increases and the city's decision to absorb part of increased insurance costs to protect employees' take-home pay.

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What they’re saying

“We would have nothing to budget in subsequent years because we would have completely utilized all of our fund balance.”

— Lesley Doyle, Las Cruces Finance Director

“We got here because we made a serious investment in our greatest asset, which is our people.”

— Johana Bencomo, Las Cruces City Councilor

“I think we need to go back and review some of those things as an organization.”

— Eric Enriquez, Mayor of Las Cruces

What’s next

The Las Cruces City Council will vote on the proposed budget in May.

The takeaway

Las Cruces' budget challenges highlight the difficult tradeoffs cities face in balancing employee compensation, essential services, and long-term fiscal sustainability. The city's decisions will impact the community's quality of life and economic resilience in the years ahead.