The City of Sacramento has proposed a $1.65 billion budget for the upcoming fiscal year. The budget will support operations, capital improvement projects, and maintain approximately 5,000 full-time-equivalent jobs, according to the City of Sacramento.
Sacramento is working to address a $62.2 million budget shortfall, with operating expenses set to outpace revenues. The City of Sacramento plans to use $34.6 million in ongoing solutions and $35.2 million in one-time strategies to balance the budget without cutting essential services. Interim City Manager Leyne Milstein said, "The City continues to make important progress toward closing its structural deficit." Key priorities in the proposed budget include maintaining 1,350 shelter beds for the homeless, advancing the Streamline Sacramento initiative, and expanding library services in North and South Sacramento. Some positions will be cut, but efforts will be made to reassign affected employees to other city roles.
Sacramento is preparing for potential federal funding cuts and a possible recession by creating a reserve to address funding delays. The city also faces $3.3 billion in unfunded pension liabilities and deferred maintenance. A 1% salary increase would add $4.8 million to General Fund expenses. Budget hearings will be held in May, with the final budget expected to be approved in early June. Citizens can participate by attending meetings, submitting comments online, or contacting their Councilmember, as reported by the City of Sacramento.
