{"id":316346,"date":"2026-05-15T00:49:08","date_gmt":"2026-05-15T00:49:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/316346\/"},"modified":"2026-05-15T00:49:08","modified_gmt":"2026-05-15T00:49:08","slug":"fresnos-spending-to-surpass-revenues-for-next-5-years-whats-the-plan","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/316346\/","title":{"rendered":"Fresno&#8217;s Spending to Surpass Revenues for Next 5 Years. What&#8217;s the Plan?"},"content":{"rendered":"<p>A day after presenting his record-setting $2.55 billion budget to media, Fresno Mayor Jerry Dyer made his pitch to councilmembers Thursday.<\/p>\n<p>As Dyer warned that next five years will likely be spent in the red, the discussion quickly turned to the city\u2019s long-term financial outlook.<\/p>\n<p>That conversation included a long-term planning proposal for development in southeast Fresno, which Councilmember Tyler Maxwell said could provide Fresno with good paying jobs. He said the city \u201cis not pulling in the revenue it needs to sustain a city of its size and its needs.\u201d<\/p>\n<p><a data-no-instant=\"1\" href=\"https:\/\/gvwire.com\/contact\/\" rel=\"noopener nofollow\" class=\"a2t-link\" target=\"_blank\" aria-label=\"GVWire-Ad-Get-our-mobile-app-1280\u00d790-1\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/03\/GVWire-Ad-Get-our-mobile-app-1280x90-1-1.jpg\" alt=\"\"   width=\"1280\" height=\"90\"\/><\/a><\/p>\n<p>He said the city needs to make land available for affordable housing or job sectors.<\/p>\n<p>\u201cWe\u2019re looking at a number of things. One of them is an open and willing city that is allowing itself to be part of the conversation by proposing areas for them to do business and preparing a workforce that\u2019s ready to enter into that business,\u201d Maxwell said.<\/p>\n<p>\u2018Fresno Can\u2019t Have Nice Things\u2019: Karbassi<\/p>\n<p>For the third year in a row, city departments have had to cut spending, Dyer said. Despite growth in property tax and sales revenue, Fresno cut $34.5 million in spending to reach a balanced\u00a0 budget without dipping into reserves.<\/p>\n<p>City Councilmember Mike Karbassi said the problem has gone beyond a \u201cspending problem\u201d and become a revenue problem.<\/p>\n<p>Alluding to a pending fight for a new northwest Costco that could bring in $15 million a year in sales tax revenue, Karbassi said at the meeting that legal fights over commercial centers keep Fresno\u2019s tax base from growing.<\/p>\n<p>\u201cFresno can\u2019t have nice things,\u201d Karbassi said, referring to growth opponents that he characterized as \u201chaters.\u201d<\/p>\n<p>Plaintiffs in a lawsuit opposing the proposed Costco have said that the plan would bring excessive traffic and greenhouse gases to the area, to which a Fresno County judge in 2025 agreed. The city will review a revised plan city staff say meets the judge\u2019s requirements.<\/p>\n<p>Dyer on FUSD Trustees\u2019 SEDA Vote<\/p>\n<p>Later this summer, Dyer said he will present councilmembers with detailed financial plans for the Southeast Development Area. The south SEDA plan, Dyer said, will set Fresno up far into the future to attract residents and businesses.<\/p>\n<p>\u201cI find it really ironic that (Fresno Unified) didn\u2019t raise a peep about the West Area plan when that dramatically helps Central Unified.\u201d \u2014 Fresno City Councilmember Mike Karbassi <\/p>\n<p>Dyer\u2019s latest proposal refocuses the 9,000-acre area to 1,500 acres in the southern portion that would mostly be dedicated to manufacturing.<\/p>\n<p>Opponents to SEDA say the debt needed to pay for the water and sewer infrastructure would come at the cost of developing in the urban core.<\/p>\n<p>A majority of Fresno Unified trustees on Wednesday brought up similar reasons for stopping SEDA before it gets off the ground.<\/p>\n<p>Trustees Veva Islas, Andy Levine, Valerie Davis, and Keshia Thomas opposed the city\u2019s land use plan, saying in large part that it would result in declining enrollment in Fresno Unified. However, the district\u2019s chief of operations, Paul Idsvoog, stated that the SEDA-caused loss of students would be negligible, averaging 29 a year.<\/p>\n<p>Dyer said trustees voted against opening up land for advanced manufacturing land that could provide future jobs for students.<\/p>\n<p>\u201cFor the life of me, I can\u2019t understand it because we have one-in-four people living below the poverty line,\u201d Dyer said at the meeting.<\/p>\n<p>Karbassi told GV Wire that SEDA \u201cright now is for the people starting kindergarten.\u201d The discussion, however, has become political. He said the district did not oppose the city\u2019s 2025 plan to develop in west Fresno, which is also outside Fresno Unified.<\/p>\n<p>\u201cI find it really ironic that they didn\u2019t raise a peep about the West Area plan when that dramatically helps Central Unified,\u201d Karbassi said.<\/p>\n<p>SEDA Ultimately a \u2018Drain\u2019 On Long-Term Growth: Arias<\/p>\n<p>Not all councilmembers were in agreement about SEDA\u2019s ability to deliver future revenue.<\/p>\n<p>\u201cI\u2019d rather see economic development focused inward \u2014 redevelopment, infill, housing, and revitalization in existing parts of the city where infrastructure already exists and where the return to taxpayers is stronger.\u201d \u2014 Fresno City Councilmember Miguel Arias<\/p>\n<p>Councilmember Annalisa Perea said the city needs to weigh the cost implications. She said she would wait to see Dyer\u2019s plan before making a decision.<\/p>\n<p>During the meeting, she said ministerial plans \u2014 which fast-track development by bypassing public comment periods for projects that meet land use codes \u2014 would make building faster.<\/p>\n<p>Councilmember Miguel Arias, who was not present at the meeting, told GV Wire that SEDA\u2019s infrastructure demands would ultimately be a drain on the general fund over time.<\/p>\n<p>\u201cI\u2019d rather see economic development focused inward \u2014 redevelopment, infill, housing, and revitalization in existing parts of the city where infrastructure already exists and where the return to taxpayers is stronger,\u201d Arias said.<\/p>\n<p>He said a stronger approach is investing in existing neighborhoods.<\/p>\n<p>City Councilmember Brandon Vang, in a statement to GV Wire, echoed that strategy.<\/p>\n<p>\u201cWe must pursue responsible economic growth to strengthen the city\u2019s long-term financial stability,\u201d Vang said. \u201cI will continue supporting our infill development program and modernizing land use policies to streamline development and attract private investment into underutilized areas throughout the city.<\/p>\n<p>\u201cWe should also remain open to strategic public-private partnerships that can help deliver infrastructure, commercial investment, housing opportunities, and job creation in areas that have historically lacked economic investment across the city.\u201d<\/p>\n<p>Council President Nelson Esparza said SEDA could accomplish that inner city investment by redirecting revenue. When the Fresno City Council in December voted to send the SEDA plan back to city staff, he added in several requests including evaluating a possible additional tax on properties there to pay for properties along Blackstone Avenue.<\/p>\n<p>Does City\u2019s PLA Pay Off?<\/p>\n<p>In a conversation with GV Wire, Councilmember Nick Richardson said the city needs to be prepared to deal with diminished services if expenditures continue to outpace revenues.<\/p>\n<p>\u201cSometimes as a strict fiscal conservative, it can be a little lonely,\u201d Richardson said.<\/p>\n<p>While other departments were tasked with calculating attrition rates into their budgets, Dyer did not ask councilmembers to do the same. While gains would be small, Richardson said the council needs to show leadership by, for example, cutting staff hours.<\/p>\n<p>Richardson said that when he proposed cutting from the council budget in fiscal year 2026, he received a lot of blowback.<\/p>\n<p>\u201cYou would think I had just run over their cat in front of them,\u201d Richardson said.<\/p>\n<p>He also said that when the city\u2019s project labor agreement \u2014 a contractual agreement to use a certain level of union labor on city projects \u2014 expires at the end of the year, the city needs to reevaluate the returns on those policies.<\/p>\n<p>\u201cLabor unions don\u2019t understand this or necessarily care,\u201d Richardson said.<\/p>\n<p><a href=\"https:\/\/gvwire.com\/2024\/12\/03\/city-of-fresnos-union-construction-pact-fails-to-deliver-promised-local-jobs\/\" target=\"_blank\" rel=\"noopener nofollow\">A 2024 report<\/a> indicated that the city\u2019s PLA was failing to deliver promised local jobs.<\/p>\n","protected":false},"excerpt":{"rendered":"A day after presenting his record-setting $2.55 billion budget to media, Fresno Mayor Jerry Dyer made his pitch&hellip;\n","protected":false},"author":2,"featured_media":316347,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[112,114,113],"class_list":["post-316346","post","type-post","status-publish","format-standard","has-post-thumbnail","category-fresno","tag-fresno","tag-fresno-headlines","tag-fresno-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/316346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=316346"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/316346\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/316347"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=316346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=316346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=316346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}