Despite facing fiscal challenges, resulting in several programming and staffing cuts across city departments, the Long Beach City Council approved a balanced $4 billion budget on Tuesday, Sept. 8, with the 2026-27 fiscal year spending plan also making investments in public safety, traffic safety and restoring library services, among other priorities.<\/p>\n
The investments made in this year\u2019s budget reflect the Long Beach community\u2019s values, city leaders said \u2013 striving for a safer, more affordable and vibrant city supported by \u201cstrong social infrastructure and fiscal responsibility.\u201d<\/p>\n
The budget for the 2027 fiscal year received the council\u2019s approval after several weeks of community meetings and citywide departmental public hearings. Long Beach\u2019s new fiscal year begins on Oct. 1.<\/p>\n
\u201cWe don\u2019t want to go back on our progress; we have one more budget to get through before we have sustained structural surpluses,\u201d Mayor Rex Richardson said after the council approved the budget.<\/p>\n
\u201cNext year will not be as challenging as this year,\u201d he added, \u201c(but) if we continue with this discipline, we\u2019ll deliver again our first structural surplus since pre-pandemic.\u201d<\/p>\n
The city had projected a $61.3 million deficit in the 2026-27 budget\u2019s general fund. But because of critical needs set-asides having been removed and lower-than-anticipated allocations from Internal Services Funds, that shortfall decreased. The shortfall is $58.2 million in the 2027 fiscal year budget, said City Manager Tom Modica.<\/p>\n
For the past couple of years, Long Beach has been anticipating a general fund deficit, as economic uncertainty across the country grows, federal funding cuts continue, the city\u2019s oil revenue keeps decreasing, revenue growth has been slow, labor costs have increased, and the state faces its own budget challenges.<\/p>\n
During this current fiscal year, the city was facing a $60.5 million general fund deficit through FY 2031. But the projection for the general fund, city officials said, has decreased, with a shortfall of $27.3 million for FY28 \u2014 and a $2.4 million surplus by FY32.<\/p>\n
This year\u2019s budget was initially presented on July 30<\/a> with cuts to programming and staffing to remain fiscally responsible, city officials said. Some priorities for the budget include leveraging diverse funding sources to invest in infrastructure; ensuring economic vitality and future revenue-generating opportunities; navigating challenges while laying the foundation for a stronger and more sustainable future for the city; and having the budget reflect the values of the community.<\/p>\n