Berkeley voters will decide on November 3 whether to raise the city's sales tax by half a percentage point, a move officials say is needed to help close a $30 million budget deficit and keep Fire Station 4 from closing. Measure V would push Berkeley's aggregate sales tax rate to 10.75%, generating an estimated $9 million to $10 million a year for the city's general fund.
The measure was placed on the ballot earlier this year by the Berkeley City Council and requires only a simple majority to pass, according to SFGATE. Revenue raised by the tax would flow into the general fund, giving the City Council discretion over how to spend it, as reported by Mercury News. City leaders have projected a $30 million annual budget deficit for 2027 and 2028, and have already addressed $21 million of that structural gap through spending cuts, leaving roughly $9 million still unresolved, according to Berkeleyside.
What's at Stake if the Measure Fails
If Measure V doesn't pass, the city could close Fire Station 4 on Marin Avenue and lay off the nine Fire Department employees who staff it, Berkeleyside reports. Supporters of the measure argue its passage would prevent the closure of Fire Station 4 in the Berkeley hills and help maintain emergency response services, per SFGATE. Berkeley City Manager Paul Buddenhagen has reported that 33 city positions could be eliminated in fiscal year 2028 if the measure fails, a list that includes three firefighters, three fire captains and three fire apparatus operators.
The same accounting includes 15 police officers, six dispatchers, two assistant recreation coordinators and one sports official in the Parks, Recreation and Waterfront department, according to SFGATE. Separately, the city could lay off nine police officers while cutting six open officer positions and six vacant 911 dispatcher jobs, Berkeleyside's analysis found. Potential reductions also include trimmed hours at city pools and smaller enrollment in summer and after-school programs for children, the outlet reports.
A Budget Already Trimmed Once
Berkeley's broader budget plan calls for eliminating 138 positions — 38 filled roles and 100 vacant ones — among roughly 1,600 current city employees, according to the Berkeley Scanner. That plan delays further staffing cuts until voters weigh in on the sales tax, and the City Council directed staff back on March 17 to draft the ballot language that became Measure V, the Scanner notes. If the measure fails to win majority approval, deeper cuts would be required, the same outlet reports.
City officials have said the proposed tax revenue could keep Fire Station 4 open and avert other cuts to fire, police and parks staff, according to a separate Berkeleyside report on the budget process. The Berkeley City Council adopted its FY 2027 and FY 2028 budget in June, per city records.
The Case For and Against
Berkeley Mayor Adena Ishii and City Auditor Jenny Wong authored the argument in favor of Measure V, which attributes the city's structural deficit to state funding takeaways and recent federal cuts, and says a yes vote would prevent forced fire and police department cuts caused by the budget shortfall, SFGATE reports. On the other side, Isabelle Gaston, treasurer of the volunteer organization Affordable Berkeley, and others authored the opposition argument. Opponents argue the tax hike during an affordability crisis would target economically vulnerable Berkeley residents, and their written argument notes that placing the revenue in the general fund lets the city spend it however it sees fit. The opposition argument calls on the City Council to demonstrate disciplined budgeting, prudent spending and accountability before seeking what they describe as another regressive tax.
City-commissioned polling in April found 52% of respondents supported the sales tax proposal, according to SFGATE, and the outlet reported the vote could be close. Measure V's revenue would be subject to the same independent audit requirements that apply to other general tax revenues, and the city could spend it on any valid municipal purpose.
How Berkeley Compares to Its Neighbors
The proposed increase would align Berkeley's sales tax rate with most of Alameda County, including Oakland, according to Local News Matters. Alameda, Albany, Oakland, Hayward, Newark, San Leandro and Union City already charge 10.75%, while Emeryville sits at 10.5%, per the Berkeley Scanner's reporting. Statewide, sales tax rates range from 7.25% to as much as 11.25%, according to the California Department of Tax and Fee Administration. Should a separate regional 0.5% sales tax increase for public transit also pass this November, Berkeley's total rate would climb to 11.25%, Berkeleyside reports.
