5 things to know as Sacramento City Council starts budget cutting debate
The Sacramento City Council is scheduled Tuesday to begin its monthlong discussions to plug its $66.2 million budget deficit. The plan could include layoffs, closing wading pools and cutting public safety programs.
City Manager Maraskeshia Smith released a 569-page proposed fiscal plan for the $1.72 billion budget on Wednesday. The plan guides spending for the next fiscal year, from July 1 until June 30, 2027.
Smith did not rule out layoffs. Her proposed budget calls for the elimination of 46 filled positions, although some the employees could be shifted to other roles.
Sacramento Mayor Kevin McCarty signaled his support for her budget proposal on social media.
“We’ve found solutions that have the least impact to our neighborhoods, city services and employees,” McCarty said in a statement.
The budget proposal includes various levels of personnel cuts, hiring freezes and changing people’s responsibilities. The police and fire departments will cut vacant positions, but no first responders will be laid off.
Here are five things to know about the budget deficit. The City Council will meet at 5 p.m. Tuesday at City Hall, 915 I St. The council is scheduled to discuss their ideas throughout the month of May.
How did the city get to this point?
For three consecutive years, City Hall has not made enough money to pay for all its services. The City Council has avoided layoffs in previous years, but that could change this year.
Sacramento’s budgetary woes stem from its services costing more and expanding while its revenues have not kept up, according to Smith.
Taxes account for 43% of Sacramento’s revenues, and make up the biggest portion of the city’s income. Property taxes rose this year to $248.5 million, up from $239.3 million from last year, according to the city. But sales tax dropped slightly compared to last year, and are projected to remain flat in the next fiscal year.
Sacramento also must fill its budget gap without a guarantee of state funding related to homelessness. The city could spend about approximately $168 million over the next four years to offer these services.
How will the city get more money?
To make up for a loss in taxes, the city hopes to collect more revenue.
Smith’s proposal projects increasing the Sacramento Fire Department’s permit fees, fire district revenues and grant reimbursements related to emergency medical response, according to the budget.
Fees for parking violations could also rise this year. Licensing costs related to some animal services could also increase.
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How will the police and fire departments change?
The public safety agencies have shed numerous vacancies in years past. During this budget cycle, the agencies will continue to cut vacancies and shift around first responders.
The Sacramento Police Department could fold its mounted patrol unit. The officers, who ride horses, are some of the most public-facing members of the department. They often trot through Old Sacramento. The unit, which was formed in 1998, also travels along parade routes and responds to violent calls.
A Sacramento police spokesperson said the officers in the mounted unit will receive a different assignment, and the horses would be put up for adoption.
The department will also cut back its use of a controversial gun detection program called ShotSpotter, and cease using SpidrTech, a technology allows dispatchers to text with victims.
What services could be reduced?
The city could reduce hours at some neighborhood pools and close all four wading pools. Those include the Bertha Henschel, Colonial, William Land and Robertson park wading pools.
The aquatics division could lose 54 part-time positions, and one full-time position. Some pools would be open just three days a week under the budget plan.
What’s next?
Even if the city plugs its $66.2 million budget deficit, its hardships are not over.
Some economists warn of a potential recession that would sharply curtail revenues, according to the city. Inflation and energy prices have increased amid the war in Iran.
There are also $2 billion of unfunded capital projects and deferred maintenance, as well as a $1.5 billion unfunded pension liability from California Public Employees Retirement System, according to the city.
The budget is scheduled to be adopted June 9.
