The City of Asheville is closing out a difficult budget year. What began as a projected $30 million gap for the 2026-27 fiscal year has narrowed through the budget process, but it still means a likely property-tax rise and cuts to some city programmes. Here is a plain-English look at what is known and what is still being decided.

The size of the gap

City staff first projected a roughly $30 million gap for 2026-27, driven by rising healthcare and personnel costs, slower sales-tax growth and the lingering financial effects of Helene. By the spring that figure had been narrowed to about $8.9 million, according to WLOS, as the city worked through options.

Why a shortfall happens after a disaster

Disasters squeeze municipal budgets from both sides: recovery and repair costs rise while revenue tied to tourism, sales and property can soften. Asheville's heavy reliance on tourism makes its revenue particularly sensitive to a slow visitor season, a link we explore in our tourism economy explainer.

What is on the table for residents

The current proposal would close the gap through a mix of a roughly 15% property-tax-rate increase and spending cuts. City staff have identified about $6.9 million in possible cuts, including eliminating vacant positions, trimming some staff benefits and pausing funding for arts grants, neighbourhood projects, holiday events and reduced community-centre hours, according to Blue Ridge Public Radio. These are proposals, not final decisions.

The vote, and what we are watching

Council is expected to vote on adopting the 2026-27 budget on 9 June 2026. We will report the final figures, the tax rate and the confirmed cuts against the city's own budget documents rather than the early projections. For who decides this and how, see our guide to who runs Asheville and Buncombe County.

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