A sharp spike in health insurance costs and lagging revenues have blown a hole in Auburn’s budget, according to The Citizen.
City officials now project a $1.2 million revenue shortfall and about $800,000 in unplanned expenses for 2025–26. Health insurance drives much of the problem after premiums jumped 14% this year, following a massive 42% increase last year. The city may need to pull $3 million from its fund balance instead of the $1 million originally planned.
Several revenue sources are also underperforming, including the hotel tax and parking fees. One bright spot: Auburn City Ambulance is on track for a surplus. Budget talks for 2026–27 resume in March.

