Berkeley officials are weighing layoffs, service cuts and a potential sales tax increase to close a nearly $30 million budget shortfall, KRON4 reported.
The deficit hits the city’s operating budget — not capital projects — meaning the daily services that Berkeley’s roughly 120,000 residents rely on are directly at risk.
What Could Be Cut
The city is considering reductions across core departments, according to KRON4, including public safety, street maintenance, sanitation and social programs. Specific positions and divisions targeted for cuts have not been disclosed. Officials say they are still evaluating scenarios, not a finalized plan.
Sales Tax on the Table
A sales tax increase is under consideration as a way to offset part of the shortfall without deep staffing cuts. Under California law, any change to the local sales tax rate requires voter approval, meaning the city would need to place the measure on an upcoming ballot.
For Berkeley residents, a higher rate would raise the cost of everyday purchases. For local businesses, it could mean losing customers to neighboring cities with lower rates.
Why the Gap Exists
KRON4 did not detail the specific causes of Berkeley’s deficit. California municipalities broadly have faced rising personnel costs and pension obligations over the past two years, alongside slowing property and business tax revenues.
Berkeley is not alone. Oakland and San Francisco have confronted similar pressures in recent months, with shortfalls running into the hundreds of millions of dollars.
Next Steps
The Berkeley City Council must approve any budget measures through a public hearing process. If the sales tax option moves forward, it would appear on one of the next available ballots. KRON4 said it would report additional details on the cuts as the city releases more information.