The Brief

Sacramento City Council Approves $1.7 Billion Budget Amid $66 Million Deficit

The Sacramento City Council has approved a $1.7 billion budget for Fiscal Year 2026–27, addressing a $66 million deficit without layoffs but implementing service cuts and fee increases.

In a decisive move to address a projected $66.2 million budget deficit, the Sacramento City Council approved a $1.7 billion budget for Fiscal Year 2026–27 on June 9, 2026. This budget aims to balance the city's finances while maintaining essential services for its residents. The approved budget includes a combination of expenditure reductions, revenue adjustments, and funding shifts to close the deficit. Notably, the plan eliminates 46.1 filled full-time equivalent positions and nearly 95 vacant positions. City officials emphasized that not all filled position eliminations would result in employee separations, as some impacted employees may transition into other available roles. Importantly, no sworn police or fire personnel are slated for separation due to budget balancing efforts. To further address the deficit, the budget introduces fee increases, including a rise in on-street parking meter rates, which will start at $3 per hour and can go up to $6 per hour based on tier. Parking garage fees are also set to increase. Despite these measures, the budget restores funding for several key programs. This includes the Police Department Magnet Academy, partial restoration of Fire suppression vacancies, park maintenance services, and programs in Youth, Parks & Community Enrichment. The budget also reflects changes to previously considered revenue options. The city is not moving forward with parking meter rate increases and residential parking permit charges. These items appear in the proposed budget document but are not included in the final proposal, as the changes were made after it was sent to print. Councilmembers Lisa Kaplan and Mai Vang voted against the budget, expressing concerns about the city's long-term financial stability. Kaplan stated, "I don't think we are doing what we need to do to be readily transparent, implement our values, and show a two-year budget when we know the minute this passes, which I know this will, that we are already $60 million in the hole." The budget's passage marks a significant step in Sacramento's efforts to stabilize its finances while striving to minimize the impact on essential services and programs that residents rely on.

Why it matters

Residents will experience fee increases and potential service reductions as the city addresses its budget deficit.
The budget's approval without layoffs aims to maintain public safety and essential services.
The council's decision reflects ongoing challenges in balancing fiscal responsibility with community needs.

ℹ️ Researched and summarized from public reporting. Check the sources below.

Sources

City Releases Proposed Budget for Fiscal Year 2026-27 | East Sacramento News — eastsacramentonews.com
Sacramento City Council passes budget without layoffs — capradio.org
Sacramento City Council approves revised $1.6 billion city budget - CBS Sacramento — cbsnews.com
City Opens Budget Work Sessions on $66.2M Deficit — East Sacramento News

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