Berkeley Proposes 138 City Job Cuts in Budget Plan

Proposed budget aims to address structural deficit in city's general fund

Apr. 15, 2026 at 12:25am

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A photorealistic painting of a government building in a warm, golden light, with deep shadows casting across the facade, conveying a sense of quiet contemplation and the weight of civic responsibility.Berkeley's budget woes reflect the fiscal challenges facing many cities, as rising costs and revenue limitations strain municipal finances.Berkeley Today

The City of Berkeley has proposed a budget plan that includes the elimination of 138 city positions, 38 of which are currently filled. The plan aims to address a structural deficit in the city's general fund by reducing costs across various departments. The proposed budget will be presented to the city's Budget & Finance Committee on Thursday, April 16, and will undergo further review by the full City Council in the coming months.

Why it matters

Berkeley's budget challenges reflect broader fiscal pressures facing many municipalities, as cities grapple with rising costs, revenue limitations, and aging infrastructure. The proposed job cuts and other cost-saving measures are an attempt to stabilize the city's long-term financial outlook, though the plan also hinges on the passage of a proposed 0.5% sales tax increase on the November 2026 ballot.

The details

The proposed budget plan, developed in collaboration with all department directors, includes the elimination of 38 filled positions and 100 vacant positions out of the city's approximately 1,600 current employees. It also includes reductions in various programs. The plan delays additional staffing cuts until voters weigh in on a proposed 0.5% sales tax increase on the November 2026 ballot, which could provide an estimated $9 million in annual general fund revenue to minimize cuts to police, fire, and parks departments.

  • The proposed budget plan will be presented to the City Council's Budget & Finance Committee on Thursday, April 16, 2026.
  • The full City Council will hold a first hearing to discuss the City Manager's proposed budget on May 19, 2026.
  • The City Council is scheduled to adopt the biennial budget on June 23, 2026.

The players

Berkeley City Manager

The city manager who proposed the budget plan with input from all department directors.

Berkeley City Council

The nine-member city council that will review and ultimately adopt the biennial budget.

Berkeley City Council's Budget & Finance Committee

The three-member committee that will initially review and discuss the proposed budget plan.

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What they’re saying

“The goal of this plan is to align revenues and expenses to stabilize a long-term structural budget deficit without relying on one-time fixes.”

— Berkeley City Manager

What’s next

The proposed 0.5% sales tax increase measure will be on the November 2026 ballot. If approved by voters, it could provide an estimated $9 million in annual general fund revenue to help minimize position reductions in the police, fire, and parks departments. If the measure fails, deeper budget cuts would be required.

The takeaway

Berkeley's budget challenges reflect the fiscal pressures facing many cities, as rising costs, revenue limitations, and aging infrastructure strain municipal budgets. The proposed job cuts and other cost-saving measures aim to stabilize the city's long-term financial outlook, though the plan's success hinges on the passage of a proposed sales tax increase.