The $27 Million Structural Deficit — Layoffs, a Sales Tax & a November Reckoning

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Berkeley is at a genuine fiscal crossroads — and November 2026 will determine whether the city can avoid deep service cuts. The Berkeley City Manager has proposed a budget plan that includes layoffs of 38 filled positions and elimination of 100 vacant positions among approximately 1,600 city employees, as well as reductions in a variety of programs — and deliberately delays additional staffing cuts until voters weigh in on a city-specific 0.5% sales tax on the November 2026 ballot, which would provide an estimated $9 million in general fund revenues annually. The City Council unanimously voted to draft ballot language for both the proposed $300 million bond measure and the 0.5% sales tax increase, with the measures set to appear on the November 2026 election ballot — a combined ask that tests voter appetite given competing regional transit and housing measures also on the same ballot. The stakes are direct: the city warns it could close a fire station, lay off police officers, and slash hours at pools and community centers if voters don't pass the tax increase in November.

Related cause: Budget priorities

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