Berkeley Council adopted a balanced budget addressing a $21 million deficit with temporary measures, including a hiring freeze and redirection of funds. The projected spending for fiscal year 2025-26 is $819 million, with $311 million from the general fund, mainly funding police and fire services. Budget Manager Shana Amenaghawon noted these temporary solutions won't suffice for a $20 million structural deficit. Revenue is not keeping pace with spending amid uncertainty from federal and state funding cuts, emphasizing the need for alternative financial strategies.
The balanced budget adopted by Berkeley Council plugged a $21 million hole using temporary measures, while a $20 million structural deficit looms for future decisions.
Berkeley's general fund, projected at $311 million, primarily funds staffing, with nearly half allocated to police and fire department expenditures.
Budget Manager Shana Amenaghawon indicated that one-time measures cannot offset future structural budget shortfalls, stressing the need for an alternative approach.
Concerns were raised about funding instability at the federal and state levels affecting municipal budgets, highlighting the reliance on these funds for operations.
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