Sacramento Considers Parking Meter Hike to Address Budget Deficit

City officials propose raising rates and expanding paid parking to help close $66 million shortfall.

Published on Feb. 27, 2026

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Sacramento is considering another increase in parking meter fees and expanding paid parking to address a $66 million budget deficit. The proposed changes include raising rates, eliminating free parking after 6 PM, and installing 200 new meters in currently free areas. Officials say the moves will encourage turnover and promote public transit, but some worry it will hurt local businesses.

Why it matters

As cities across the country face pandemic-related budget shortfalls, Sacramento's proposed parking changes highlight the difficult tradeoffs municipalities must make between raising revenue and supporting local commerce. The plan could impact residents, commuters, and businesses in the city's central neighborhoods.

The details

The latest parking fee hike would take effect in July, building on increases passed in the last two years. Officials also want to eliminate free parking after 6 PM at most meters and install 200 new meters in currently free areas. Additionally, the city is considering charging for residential parking permits, which currently allow 30,000 people to park for free on neighborhood streets.

  • Two years ago, the city raised street parking fees and eliminated free parking on Sundays and holidays.
  • Last year, an additional parking fee increase was passed.
  • The latest proposed changes, including higher rates and expanded paid parking, could take effect in July 2026.

The players

Sacramento City Officials

City leaders who are recommending the parking meter hikes and other changes to help address a $66 million budget deficit.

Tyler Traweek

A Sacramento resident who is concerned the proposed changes, including requiring payment until 10 PM, will negatively impact local businesses.

Karyn Lenhart

A midtown Sacramento customer who believes the potential parking fee changes will hurt businesses that rely on nighttime customers.

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What they’re saying

“It's annoying.”

— Tyler Traweek

“It's absolutely going to impact businesses because people rely on the fact that they can come here, they don't have to pay after a certain time.”

— Karyn Lenhart, Midtown Customer

What’s next

Budget talks at Sacramento City Hall begin next Tuesday, where each department will be asked to propose cuts. City documents show up to 190 full-time positions could be eliminated as part of the effort to balance the budget.

The takeaway

Sacramento's proposed parking fee hikes highlight the difficult choices cities face in addressing budget shortfalls, as officials must balance the need for revenue against the potential impact on local businesses and residents. The plan's success will depend on striking the right balance between fiscal responsibility and supporting the city's economic vitality.