Fresno, California, has recently joined the ranks of cities in the state facing a budget deficit, with Mayor Jerry Dyer informing the city council that Fresno is over $37 million in the red.
Mayor Dyer highlighted shifts in budgetary trends over the past few years, noting decreases in revenue from sales, cannabis, and business taxes in recent months. Additionally, the city faces rising costs for utilities and wages across various sectors due to inflationary pressures.
Various factors contribute to the budget deficit, including increased expenses such as pension contributions, workers’ compensation, liability insurance, and utility bills. Contractual obligations with labor and service providers also add to the financial strain.
To address the shortfall, the mayor’s office plans to implement three percent budget cuts across departments throughout the city over the next six weeks. While there will be a temporary freeze on new hires, vacancies created by retiring employees will be filled.
Mayor Dyer expressed hopes to avoid layoffs but acknowledged that the budget adjustments may impact city employees in other ways. Despite the challenges, the city aims to navigate the deficit while minimizing adverse effects on its workforce.
Councilmember Mike Karbassi views the current deficit as eye-opening, emphasizing the need to prioritize revenue-generating departments and activities within the city. According to Karbassi, the deficit has prompted a necessary shift in focus towards identifying and bolstering sources of revenue for Fresno.
Mayor Jerry Dyer is set to present the 2025 budget for the City of Fresno in May, offering a comprehensive plan to address the budget deficit and chart a path towards financial stability. This forthcoming budget presentation will likely outline strategies to mitigate the deficit and ensure the city’s fiscal health in the coming years.