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 the fiscal year 2026-27, addressing a projected $66 million deficit without layoffs but with service cuts.

In a decisive move on June 10, 2026, the Sacramento City Council approved a $1.7 billion budget for the fiscal year 2026-27, aiming to close a projected $66 million deficit. The budget passed with a 7-2 vote, with Councilmembers Mai Vang and Lisa Kaplan dissenting. The approved budget prioritizes core municipal services, including public safety, parks, and youth programs, while implementing measures to address the financial shortfall. Notably, the plan avoids layoffs by eliminating 80 vacant positions, including nearly two dozen police roles. However, the budget also introduces fee increases, such as raising on-street parking meter rates to $3 per hour, with potential increases up to $6 per hour based on tier. The council's decision follows a series of budget work sessions initiated in March 2026, where city officials discussed various strategies to balance the budget. City Manager Maraskeshia Smith emphasized the importance of aligning spending with ongoing revenues, stating, "We must be transparent about the challenge and align our spending with ongoing revenues." Despite the budget's passage, some council members expressed concerns about the city's financial trajectory. Councilmember Lisa Kaplan voted against the budget, citing the need for deeper cuts to prevent future deficits. She remarked, "While I am glad we are 'balanced' this year, it really is, in my mind, when you look at budgets, it's fake." The budget also includes provisions for Measure L, the children's fund, allocating approximately $8.8 million for youth development and violence prevention programs. This initiative reflects the council's commitment to investing in the city's future despite current financial challenges. As the fiscal year progresses, residents can expect to see the impacts of these budgetary decisions, including potential service adjustments and fee changes. The council's approach aims to balance fiscal responsibility with the continued delivery of essential services to the community.

Why it matters

Residents may experience changes in city services and increased fees due to budget adjustments.
The elimination of vacant positions, including police roles, could affect public safety and city operations.
Investments in youth programs aim to address community concerns about safety and development.

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

Sources

Sacramento City Council approves $1.7 billion budget in 7-2 vote — kcra.com
Sacramento City Council passes budget without layoffs — capradio.org
City begins early budget council work sessions on $66.2 million deficit - Sacramento City Express — sacramentocityexpress.com
Sacramento City Council begins $1.5 billion budget hearings with financial challenges in forecast — capradio.org

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