Fresno Starts Year With $20 Million Deficit: Ends Year With $50 Million Deficit

Fresno was once a fiscally responsible city.  Now it is working hard to rival San Fran and Los Angeles for mismanagement, fiscal irresponsibility and corruption.  They started the year with a $20 million deficit, worked hard and got that up to $50 million.  Could the real problem be the slums, lost jobs and businesses caused by the biggest scam in American history, the train to nowhere?

“Dyer said the city’s expenditures are simply exceeding revenues, leading to significant financial challenges ahead. 

• Another driving force behind the deficit is the absence of one-time funding sources that the city previously relied on, such as the CARES Act, the American Rescue Plan Act and the Emergency Rental Assistance Program. Those three sources previously provided over $330 million to the city. 
• Fresno’s main revenue drivers for Fiscal Year 2026 are projected to be property tax at $202.6 million, sales tax at $143.8 million, business licenses at $23.6 million, transient occupancy tax at $16.5 million and cannabis taxes at $3.4 million. All other revenues total $122.6 million. 
• Dyer also pointed to inflation, increased contractual obligations and personnel costs as part of the increased expenses facing the city over the following year.”

The Mayor and the city council know the problem—too much spending.  Instead of truly cutting, they raise by $29.2 million the spending—that is $9.2 million MORE than the original deficit.  Mayor Dyer could run for L.A. Mayor next year—his fiscal policies have little difference with the Marxist Mayor of L.A., Karen Bass.

Dyer proposes budget to close $50 million budget deficit 

Earlier this year, the city projected a budget deficit of $20 million for the 2025-2026 fiscal year. That deficit has ballooned over the past few months, but Mayor Dyer has pitched a balanced budget to the city council.

by Daniel Gligich, The Sun, 5/15/25   https://sjvsun.com/news/fresno/dyer-proposes-budget-to-close-50-million-budget-deficit/

Fresno Mayor Jerry Dyer unveiled his budget proposal for the 2025-2026 fiscal year to the Fresno City Council on Thursday, revealing a deficit of over $50 million. 

In order to close that deficit, Dyer’s proposal includes having nearly all city departments maintain their current vacancy rate, although the good news is that there will not be any layoffs or furloughs. 

By the numbers: The overall budget for the upcoming fiscal year totals $2.36 billion. 

• The general fund is increasing by $29.2 million to total $512.4 million in Fiscal Year 2026. 
• The enterprise and internal service funds total $969.3 million, and special revenue sources – such as tax measures and grants – are budgeted at $873.7 million. 

Driving the news: Dyer said the city’s expenditures are simply exceeding revenues, leading to significant financial challenges ahead. 

• Another driving force behind the deficit is the absence of one-time funding sources that the city previously relied on, such as the CARES Act, the American Rescue Plan Act and the Emergency Rental Assistance Program. Those three sources previously provided over $330 million to the city. 
• Fresno’s main revenue drivers for Fiscal Year 2026 are projected to be property tax at $202.6 million, sales tax at $143.8 million, business licenses at $23.6 million, transient occupancy tax at $16.5 million and cannabis taxes at $3.4 million. All other revenues total $122.6 million. 
• Dyer also pointed to inflation, increased contractual obligations and personnel costs as part of the increased expenses facing the city over the following year. 

Dyer’s plan: Dyer’s proposal has all departments – with exceptions for the City Council and Fire Department – maintaining an attrition rate of 6.18%, which should save around $25.4 million. 

• Every department was also asked to find 5% of cuts in their non-personnel line items to save $11.5 million. 
• The city is reducing the number of vehicles it has in its fleet based on which ones have the highest mileage and is reducing the trolley service it offers. 
• The budget does not bring all bad news with cuts, with Dyer planning on hiring four new police officers funded by the Fresno Area Express (FAX) department to bring the total number of sworn officers to 930. 
• The city is also ordering 30 new police vehicles that will not need to be paid until Fiscal Year 2027, as well as making the first lease payment for the new police helicopter. 
• Forty-two firefighters that were previously funded through the Staffing for Adequate Fire and Emergency Response (SAFER) Grant are being absorbed into the general fund, a $1.9 million increase. 
• Dyer also plans to fund the Residential Infill Program, the Eviction Protection Program, proactive rental housing inspection software, the City Attorney’s Office rental space and the Marjaree Mason Center, among other new and ongoing initiatives. 

What we’re watching: The City Council will dive into Dyer’s proposed budget during a series of budget hearings in June and will craft it to their liking before approving it. 

What they’re saying: “It is absolutely imperative that we as a city monitor our spending closely, constantly look for increased operational efficiencies and explore opportunities to generate new revenues,” Dyer said.