The Abridged version:
- The city of Sacramento’s proposed budget addresses a $66.2 million deficit in its general fund, which supports most city services.
- The proposal calls for the elimination of 46 positions, but some employees may be moved to new roles.
- Parking meter rate increases had been considered, but are not part of the proposed spending plan.
The city of Sacramento is proposing cutting 46 filled positions as it attempts to close a $66.2 million deficit, according to its proposed budget for the upcoming fiscal year released Wednesday.
The city, like many others in the region, faces a structural deficit, meaning ongoing expenses such as employee services and employee compensation are growing faster than revenue. City officials stressed the budget shortfall is “not the result of an economic downturn but reflects increased service demands, inflation and reduced state funding for homelessness programs.”
“This proposed budget reflects months of work to address a structural deficit that cannot be solved with one-time fixes,” City Manager Maraskeshia Smith said in a city news release. “It makes difficult but necessary decisions to align our ongoing costs with available revenues, while continuing to deliver core services and strengthen the City’s long-term financial stability.”
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In a bit of positive news for residents, city officials said they are not moving forward with proposed increases to parking meter rates or residential parking fees. Those ideas had been floated earlier this year.
Other potential reductions that had been discussed this spring that were removed from the proposed budget include cuts to the Police Department’s Magnet Academy, park maintenance and youth programs.
Sacramento faces long-term challenges beyond this year. The proposed budget projects a $32.8 million deficit next year, with the shortfall growing to $70.6 million in the 2030/31 fiscal year.
The budget proposal identified several challenges facing the city, including $2 billion in unfunded capital projects and deferred maintenance, an unfunded pension liability of $1.5 billion, “increased economic uncertainty” caused by the war in the Middle East that is affecting oil prices and unresolved labor agreements with some city unions.
The city said that while 46 positions are being eliminated, not all 46 employees will lose their jobs; some will be moved into different available roles. No police officers or firefighters would be laid off due to the cutbacks.
The City Council is scheduled to debate the budget at its Tuesday meeting, followed by another hearing the following week. The budget is scheduled to be adopted on June 9.
Ryan Lillis is the Associate General Manager of News at PBS KVIE.