Budget increasing or not doesn't change the fact that arbitration numbers are astronomically too high. Logan Gilbert is not coming remotely close to $31-33MM next year. He won't even touch $20M next year in his final arb year.
Budget increasing or not would just be bandaid, it's still an extremely poor arbitration process and that throws off extensions as well. Bryan Woo, who will be arb eligible for the first of three times entering next year, will likely make $6M in '27, $12M in '28 and $18-20M in '29 before being a free agent. (I used Gilbert and George Kirby's arb numbers for the range he'd get)
That is a total of $36-38MM in those three years but the game wants $27MM on average for those three years or just over $81MM.
Arb process is completely broken.