SACRAMENTO, Calif. — Sacramento's finance department recently published a list of cost-reduction strategies for the Fiscal Year 2024/25 budget as the city faces a $66 million deficit.
Mayor Darrell Steinberg said in February he thought it was possible to make budget cuts without layoffs, a pledge echoed by the city manager's office in a Tuesday presentation.
But this doesn't mean all programs and services in Sacramento are safe from the proposed budget cost-reduction strategies.
"There are things like not being able to fully staff our fire station, cutting police patrol and other pretty severe cuts," said Sacramento city finance director Pete Coletto. "We're reliant on our subject matter experts to help us sort out what the impact to the community would be from these strategies."
With the proposed departmental cost reductions and the citywide strategies, he said about $130 million in savings strategies were identified to address the deficit.
The cost-reduction strategies were published after the Sacramento city manager told all departments to make a reduction plan of up to 15% based on their reliance on city funds in the Fiscal Year 2023/24 budget.
City departments were also directed to propose fee increases to increase future city revenue. Areas identified for cost reduction include:
- Free parking program/days
- Fare-free transit program
- Language access program
- Business inceptive program
- Fee waivers for youth programs
- Funding to the Impact Free Waiver program
- SURA (Sacramento Utility Rate Assistance)
A community budget survey made available to residents throughout March saw almost 1,600 responses — a majority said the city should not increase fees or taxes to balance the budget.
"It's never fun to have to cut, especially when you're in the service-delivery business, trying to help more people and try to find more for people," Steinberg said Tuesday. "So this is different than what we've experienced over the last at least seven years."
A proposed 2024/25 budget is set to be released the week of April 29 and will be up for discussion by the city council May 7, with a final budget set for adoption June 11.
