The City of Sacramento proposes a fiscal year $1.7 billion budget for 2026-27 that affects more than 400 full-time-equivalent positions.

The City of Sacramento has released its proposed 2026-27 fiscal year budget, outlining a $1.7 billion spending plan aimed at closing a $66.2 million general fund deficit through staffing reductions, program adjustments and limited revenue changes.

The $1.723 billion all-funds budget includes an $898.3 million general fund supporting approximately 4,822 full-time-equivalent positions across city departments. City officials describe the deficit as structural, driven by rising personnel costs, pension obligations, inflation, liability insurance increases and ongoing service demands that exceed projected revenues.

According to city budget materials, the final proposal eliminates approximately 46 filled positions. All other staffing reductions consist of vacant positions removed from the city’s authorized workforce structure. In total, more than 400 full-time-equivalent positions are affected, though most are unfilled roles.

City Manager Maraskeshia Smith framed the proposal as part of a broader effort to address ongoing fiscal instability, warning that the city cannot continue operating with a structurally imbalanced budget year after year. She said the current approach — revisiting reductions annually — creates uncertainty across the workforce and limits the city’s ability to plan effectively.

The Department of Youth, Parks and Community Enrichment is among the most affected in the proposal. It would see 36.22 full-time-equivalent positions eliminated, including a mix of filled and vacant roles. These reductions include staffing tied to recreation programming, youth employment services, aquatics operations and park maintenance.

Park maintenance operations account for 26 vacant positions that would be eliminated, with the city shifting toward alternative service delivery models for some maintenance functions. Aquatics programming also is reduced through the elimination of 54 seasonal and part-time-equivalent positions across pool operations and supervision. As a result, neighborhood pool service is expected to be reduced to three days per week.

Youth employment and recreation programming also face reductions, including fewer coordinator and support roles across after-school programming and older adult services. City officials said the reductions are intended to preserve core programming while reducing ongoing staffing costs in lower-priority or seasonal service areas. Smith acknowledged the difficulty of those tradeoffs, noting that decisions affecting community-based services and city operations alike reflect competing priorities within a constrained budget.

The Sacramento Police Department is projected to receive approximately $273.5 million, an increase from $255.7 million in the prior fiscal year. Despite the overall increase, the department is undergoing internal restructuring that affects administrative and support staffing.

The department’s reductions total 40.9 full-time-equivalent positions. Of these, some are filled positions, while the remainder are vacant roles removed from the staffing structure. Reductions are concentrated in non-sworn classifications, including records, recruitment, training and administrative support functions.

Specifically, the proposal includes the elimination of 11 records division positions, one administrative services captain, and reductions in support units tied to background investigations, K9 support functions, the mounted division and specialized operational assistance. Additional reductions include a mix of filled and vacant positions in recruitment pipelines and training-related classifications.

Sworn officer staffing levels remain largely stable under the proposal. City officials state that the restructuring is intended to preserve frontline policing capacity while reducing administrative overhead and support staffing costs. Smith emphasized that without addressing the underlying imbalance, the city risks continuing a cycle of reactive decisionmaking that prioritizes short-term fixes over long-term strategy.

The Office of Public Safety Accountability also is impacted by the proposed budget, with four full-time-equivalent positions eliminated. They include two filled positions and two vacant positions: an executive assistant and assistant director (vacant), and an investigator and inspector general (filled). The reductions total approximately $572,000 in general fund savings and reduce staffing in the city’s civilian oversight structure. The elimination of the inspector general position removes the office’s authority to conduct independent investigations into officer-involved shootings, significantly limiting the city’s capacity for external police oversight.

The city attorney’s office will see the elimination of one filled assistant city attorney position, along with reclassification of four senior deputy city attorney positions into lower-cost classifications. City documents indicate these changes are intended to reduce personnel costs while maintaining legal service capacity, though they result in fewer senior-level positions available within the office.

The city manager’s office is reducing 3.31 full-time-equivalent positions, including administrative analysts and communications-related roles. These reductions primarily involve filled positions in administrative support and media coordination functions. At the same time, the city is consolidating economic development functions into a newly structured Economic Development Department, created within existing resources to centralize business attraction and neighborhood investment efforts. Smith said the city must redirect focus toward core priorities such as public safety, economic development and housing production, adding that Sacramento must also “figure out how to get out of the homeless business” while continuing efforts to expand housing.

The information technology department is reducing three filled positions, including GIS and IT support roles. These positions provide technical infrastructure and mapping services used across multiple departments. City materials indicate that reductions in this area may affect internal service delivery functions, though core systems are expected to remain operational.

The budget reflects approximately 415.5 full-time-equivalent positions affected by reductions. Of these, 46 filled positions are eliminated citywide, while the remaining reductions involve vacant positions removed from the staffing structure. City officials emphasize that the distinction is significant, as most reductions do not involve active layoffs but rather the removal of unfilled positions from future hiring plans. Smith noted that for the city’s thousands of employees, repeated budget cycles centered on potential cuts contribute to ongoing uncertainty about job stability.

In addition to staffing reductions, the proposed budget includes approximately $15 million in revenue adjustments. These include fee updates and cost recovery measures across select city services. City documents indicate that earlier proposals to increase parking meter rates or extend enforcement hours are not included in the final plan. Instead, revenue changes focus on administrative fees, permitting costs and reimbursement mechanisms tied to existing services.

Personnel costs remain the largest component of general fund spending, followed by pension obligations and insurance expenses. Liability insurance costs are projected at approximately $54 million, reflecting a 14% increase over prior levels. The city also continues to carry more than $1 billion in unfunded pension liabilities.

Officials say most reductions are ongoing and intended to stabilize future budgets by reducing recurring obligations rather than relying on one-time savings or temporary adjustments. Where possible, impacted employees may be reassigned into available vacant positions with the city.

The City Council will review the proposed budget in a series of public hearings and deliberations throughout May, with opportunities for public comment and departmental revisions before final adoption.

Throughout the May 5 council discussion, Smith reiterated that the city’s current approach is unsustainable, saying it is “very difficult to do strategic planning well” when departments are forced to prepare for reductions each year. She added that the city cannot remain “very reactionary” in its budgeting process and must begin making decisions that fundamentally change its fiscal trajectory.

Final adoption of the budget is expected Tuesday, June 9.

This story was originally published in The Observer.