The Sacramento City Council adopted the city’s 2026–27 operating budget and the 2026–2031 capital improvement plan on June 9, passing the measure in a roll-call vote after more than two hours of public comment and council debate.
City finance staff told the council the final budget includes roughly $900 million in general-fund spending, closes a significant budget gap and incorporates Council-directed restorations for violence-prevention grants, aquatic services, senior centers and workforce development. “These are people who have all the answers,” a member of the finance presentation team said, summarizing the work of the budget team.
Why it matters: The budget package restores several community-facing services while addressing a structural deficit. Staff outlined one-time financing strategies — including drawing on the economic reserve, freezing select vacancies and one-time savings — to preserve certain programs, but warned of longer-term pressures from unfunded pension liabilities, inflation and uncertain state homelessness funding.
Council members who opposed the budget said it does not sufficiently rebalance priorities. Council Member Kaplan voted no and pressed for a multi-year approach; Council Member Vang voted no and repeatedly voiced concern about cuts to oversight and frontline community supports. “I can’t support the budget in totality,” one opposing council member said during debate, citing both program cuts and ongoing policing expenditures.
Supporters argued the package makes difficult but necessary choices and restores key neighborhood services. Council Member Dickinson, who moved adoption, said the proposal makes “a significant advance in reducing structural deficit” and highlighted $5 million in incoming grant funding to expand youth violence-prevention efforts over three years.
The vote: Council Member Dickinson moved to adopt the budget; Mayor Pro Tem Guerra seconded. Roll call recorded KAPLAN: No; DICKINSON: Aye; PLUCKEBAUM: Aye; MAPLE: Aye; GUERRA: Aye; JENNINGS: Yes; VANG: No; MAYOR McCARTY: Aye. The motion passed and the budget was adopted.
What’s next: Council members said they expect further budget reviews and a midyear check-in. Several members urged a forensic audit of contracts and vacancies to identify additional savings and longer-term changes to hiring and outsourcing.
Budget details and context: Staff identified approximately $1.1 million in restorations and noted technical adjustments tied to labor negotiations (including firefighter contract costs) and to an economic development department reorganization. Officials said some solutions are one-time and cautioned that pension liabilities and potential recessionary pressures could create new shortfalls in coming years.
Public reaction: The adoption followed extensive public comment in which residents urged the council to preserve pools, senior services, community ambassador stipends and fee waivers, while others criticized increases in the police budget and reductions to oversight staff. Council members said they heard those concerns and pledged continued attention to public-safety oversight and community investments.
The council adjourned after brief announcements and additional public testimony.