Berkeley has implemented a hiring freeze in response to a projected budget deficit, as announced by City Manager Paul Buddenhagen to city employees. The freeze will last through the end of the next fiscal year, with limited exceptions. The specific amount of the deficit remains undisclosed. City finances have worsened due to reliance on non-recurring federal relief funds and an uncertain economic outlook. The City Council is expected to convene to discuss potential budget balancing strategies and must approve a revised budget by June.
Berkeley's hiring freeze aims to mitigate a budget deficit through summer 2026, reflecting the city's fiscal challenges due to dwindling one-time resources and economic uncertainty.
City Manager Paul Buddenhagen mentioned the hiring freeze will help slow deficit spending significantly as the city prepares for a more challenging fiscal environment moving forward.
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