Fresno Mayor Warns of Upcoming Budget Cuts

City faces $23.3 million deficit, departments asked to cut budgets by 5%

Published on Feb. 27, 2026

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The city of Fresno is facing a $23.3 million budget deficit, leading Mayor Jerry Dyer to warn of upcoming budget cuts. Departments across the city have been asked to cut their budgets by 5%, and the city will maintain a 6.18% attrition rate, leaving positions vacant when employees leave. The city is also looking at ways to increase revenue, such as raising water and sewer rates for the first time in a decade.

Why it matters

Fresno's budget challenges reflect the broader economic pressures facing many cities, as pandemic-era funding sources dry up and costs continue to rise. The need to make cuts and find new revenue streams could impact city services and infrastructure, making it an important issue for Fresno residents.

The details

The $23.3 million deficit is expected to grow before the start of the next fiscal year on July 1. In addition to the 5% budget cuts, the city will maintain a 6.18% attrition rate, leaving positions vacant when employees resign, retire or leave for other reasons. The city is also looking at increasing the transient occupancy tax on Airbnb rentals and raising water and sewer rates for the first time in a decade. The Fresno Fire Department also requested an additional $1.96 million for overtime and training costs due to a high vacancy rate.

  • The current $2.3 billion budget for fiscal 2026 was affected by similar challenges.
  • The proposed water and sewer rate increases will come before the city council sometime in 2026.
  • The new and increased fees for city services will go into effect on July 1, 2026.

The players

Jerry Dyer

The mayor of Fresno who warned of upcoming budget cuts and the need to increase attrition rates to balance the budget.

Nelson Esparza

A Fresno City Council member who asked if the city had any "magic tricks" to help alleviate budget pressures.

Georgeanne White

The Fresno City Manager who said the new and increased fees for city services were necessary to keep up with rising labor costs.

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What they’re saying

“It's going to be another tight year — there's no question. We're going to see sales tax is ticking up, property tax continually growing, but what we're going to see is that our expenditures are again exceeding our revenues.”

— Jerry Dyer, Mayor (fresnobee.com)

“We will continue to be as creative as we possibly can.”

— Jerry Dyer, Mayor (fresnobee.com)

“We have so many vacancies that we have people at the higher ends of the pay scale that are back-filling, being paid overtime for an entry-level firefighter job.”

— Georgeanne White, City Manager (fresnobee.com)

What’s next

The Fresno City Council will consider the proposed water and sewer rate increases sometime in 2026.

The takeaway

Fresno's budget challenges highlight the broader economic pressures facing many cities, as they struggle to balance rising costs and limited revenue sources. The need to make cuts and find new revenue streams could have significant impacts on city services and infrastructure, underscoring the importance of fiscal responsibility and creative problem-solving for local governments.