2027-2028 City Budget

A Message from Mayor Ishii

On June 23, the Berkeley City Council unanimously adopted a budget for Fiscal Years 2027 and 2028.

Together with the City Manager and City staff, we worked incredibly hard to protect our community's priorities, minimize the impact of cuts, and identify new revenues to help secure Berkeley's financial future.

The reality is that the revenue our City receives no longer covers the cost of providing the services our community depends on. For years, we have relied on one-time funding sources to bridge ongoing budget gaps instead of implementing long-term solutions. At the same time, reductions in federal and state funding, rising costs for goods and services, continued global economic uncertainty, and instability at the federal level have placed even greater pressure on our budget.

Continuing to postpone addressing our structural deficit would only create larger financial challenges in the years ahead. After exhausting other options, we had to make difficult decisions. Unfortunately, this budget includes some layoffs and reductions that will impact City services. These were not choices anyone wanted to make, but they were necessary to put Berkeley on a more sustainable financial path.

We must also recognize that there is significant uncertainty ahead. A statewide ballot measure this November could require a two-thirds vote for local special taxes and prohibit charter cities like Berkeley from collecting transfer taxes. If approved, Berkeley could lose an estimated $35 million in annual revenue on top of our existing structural deficit of $30 million. That would have devastating consequences for our City's finances and the services our residents rely on.

Despite these difficult decisions, the City Council unanimously approved important community priorities, including:

  • $3.8 million to preserve low-income housing through the Small Sites program

  • Nine positions in the Fire Department: 5 fire fighters, 3 paramedics, and 1 inspector 

  • Funding for Downtown Revitalization, Car-free Telegraph, and Increased Housing on Telegraph and Claremont Avenues

  • Continued partnerships with community agencies providing critical health care, child care and afterschool programs, food access, and other social services 

  • Continuation of the Live Free Gun Violence Prevention Program and Sacred Rest/Village of Love drop in center for 2027

  • Funding for public safety and city services for the 2026 Solano Stroll

  • Funding for 104 capital projects, including sidewalk repair and street paving

We plan to return for a mid-year budget review in early 2027 to assess revenue projections and make informed decisions on the FY28 budget. Assessment will include any revenue impacts resulting from City’s sales tax measure, bond measure, and other local, state or federal policies. Depending on outcomes from the November election, we may be able to bring back some eliminated positions in 2028.

I want to thank everyone who contacted my office, attended City Council meetings, made  public comments, and stayed engaged throughout this budget process. Your voices helped shape these difficult decisions.

We all share a deep love for Berkeley. Every decision we made was guided by our commitment to protecting our community today while ensuring our City remains financially strong for generations to come. You are my priority and, together, we will meet these challenges and continue building a Berkeley that thrives for everyone.

In community,

-Mayor Ishii