This story was updated with the correct title for Carolyn Coleman.
The Sacramento City Council adopted a $1.7 billion city budget for the upcoming fiscal year Tuesday evening, closing a $66.2 million deficit.
The budget calls for eliminating a little over 100 positions, most of which are empty. This included 62 from the police department and 20 from the fire department. While those positions are going away, the city said all affected staffers will be offered other roles.
Councilmembers also agreed to raise fees throughout the city on things like parking violations and reduce some services, but avoided cuts to some of the city’s lowest paid workers, such as parks maintenance employees.
Current and former Sacramento city leaders acknowledged the city will deal with more financial pain in upcoming budget years. But they also noted their spending plan puts them in a good position to attract more economic development in the next decade, which could pull Sacramento out of its structural deficit.
“As we work to increase our resources, we have to recognize that like anybody else, as is often said, we have to live within our means,” Councilmember Roger Dickinson said. “... we believe that it reflects the priorities we set as a council of public safety, of economic development, of addressing homelessness.”
The council voted 7 to 2 to approve the spending plan. Councilmembers Mai Vang and Lisa Kaplan dissented for different reasons.
Vang said the current budget is balanced on the backs of community members, and the council needs to take a serious look at eliminating more police vacancies.
“I really do believe that we need to have the courage to absorb PD vacancies within the police department,” Vang said. “If we’re not bold enough to do that, I cannot support this budget.”
Kaplan, in contrast, said cutting public safety positions would end up costing more money in overtime in the future.
“Why are we eliminating more of our officer positions knowing that through overtime, because our community demands public safety and demands these services, it’s actually going to cost the city of Sacramento more money?” Kaplan questioned.
The changes to staffing and city services go into effect at the start of the new fiscal year on July 1.
What’s being cut?
Cuts in this year’s budget include more than 80 public safety positions. Gabby Miller, a city spokesperson, said that no sworn police officers or firefighters were laid off and instead some will be moved to other city positions.
A snapshot of some cuts:
- 62 police positions, which include the eliminating Sacramento PD’s mounted police unit and 11 full-time positions in Sacramento PD records departments
- 20 full-time firefighter positions
- Ending the city’s use of gunshot detection technology ShotSpotter
- Removal of the Office of Accountability Police Accountability Assistant Director position
- Removal of an OPSA investigator position
City looks at generating more revenue
Outside of cuts, the city approved around 500 fee adjustments for next year to help offset costs. According to city staff, the changes will generate $7.4 million in general fund revenue annually.
Some increased fees include:
- Parking violations, with increases dependent on the infraction
- Quarter cent per hour increases to park at some city-owned garages
- Building permit fees
- Community center rental fees
- Sports field rental fees
The city chose not to increase parking meter rates or pursue a residential parking permit in Sacramento’s downtown this year after public outcry, but will expand all parking meter hours to 10 p.m. citywide.
In previous years, the city relied on charging higher parking meter rates to generate more revenue. Last summer, for example, the council raised on-street parking rates to between $3 to $6 an hour.
Some programs, jobs favored more than others
After Sacramento’s City Manager Maraskeisha Smith released her proposed budget at the end of April, the council debated which programs and cuts should stay and what should go during May budget deliberations.
The city manager’s office originally wanted to cut 26 park maintenance positions, which are currently filled by employees, but the council reversed that decision.
Local 39 Union Representative Payden Martin advocates for parks employees. He told CapRadio that the decision is a relief for park workers, but wants to ensure his union members feel security going forward.
“I’m grateful for the progress that’s been made,” Martin said. “ The budget is gonna continue to pose a problem, and the city has to do something to try and make sure that the parks funding is secure.”
After hearing from community members, elected officials also opted to keep the following:
- Community wading pools
- Regular swimming pool hours
- Funding for violence and gang prevention grants
- Summer at City Hall program for high school students
- Code enforcement and economic development projects in North Sacramento
- Funding to keep Midtown’s Hart Senior Center open
Those decisions cost around $4.1 million, which the council had to offset through other means, which include:
- Freezing funding for the community ambassador program, which often bridges language gaps for non-English speakers who wish to engage with city government
- Cutting seven vacant parking enforcement positions
- Reducing outside parks maintenance contracts
- Shifting state homelessness funding
City faces deficit concerns in future
Despite closing this year’s shortfall, Sacramento will have to contend with a projected $35.8 million deficit in the 2027-2028 fiscal year. The deficit is expected to ultimately inch back up to $67 million by 2030, according to city staff.
This is because the city is in what is called a structural deficit, meaning current costs are outpacing revenue because of a host of factors.
These estimates take into account the potential of a recession, the rising cost of energy prices due to the war in Iran, higher interest rates and its long-term obligations such as pension and deferred maintenance costs, according to the city.
Carolyn Coleman, executive director and CEO of the League of California Cities, said Sacramento’s deficit is not a problem unique to the Capital city.
“City officials are looking at their economic climate, their trends, and predicting what revenues will look like, planning for the delivery of services and cost of doing business in light of that,” added Coleman, whose organization advocates for cities at the Capitol.
She noted cities are required by law to pass a balanced budget, so essential services are often prioritized.
“If I call 911, I need somebody to answer that call and help,” she said. “It means having reliable infrastructure and not running the public safety risk.”
Darrell Steinberg served as mayor of Sacramento from 2016 to 2024. He told CapRadio that his administration did not face a deficit until the last year in office, in part due to an influx of COVID-19 one time funds and the renewing of Measure U funds, which he advocated for.
Even still, Steinberg said that city government finances are complex.
“ The way the whole system of California and local government finance is set up, cities have a very difficult time raising revenue,” he said. “Costs go up. Our city workforce, they rightfully ask their salaries to keep up with the cost of living.”
Steinberg said Sacramento’s best chance to get out of a deficit is to grow its way out.
“ In order to grow the economy, the city needs to have some resources to be able to partner with the private sector,” Steinberg said. “Whether it's the Railyards, the waterfront, the commercial corridors throughout the city, these are places that have great potential for economic growth.”
There’s promise for that. Sacramento is looking towards sports as an economic driver, throwing its hat in the ring to become an official professional baseball city, as well as developing a 22,000 seat soccer stadium to bring in tourism.
The former mayor added that Sacramento is poised for economic growth. But, he cautioned, the city will have to continue to watch its budget closely over the next few years to ensure core services are met and city employees can keep their jobs.
