City of Salinas facing an initial projected $20 million budget deficit for 24-25 fiscal year
SALINAS, Calif. (KION-TV)- The City of Salinas' recent Finance Committee Meeting revealed the city is facing a initial projected $20 million budget deficit for fiscal year 2024-2025.
“I'm very confident that we're going to be able to balance the budget, I don't see that I don't see that we're gonna have a need to cut any services at this point," Salinas Assistant Finance Director Selina Andrews said.
Government Affairs Director Kevin Dayton with the Salinas Valley Chamber of Commerce is one of several surprised by the revelation. He is even more surprised to hear how despite that projection, the city says they believe they can still avoid a shortfall.
“I would like to see the city talk a little bit more about what that actually means in practice," Dayton said.
Interim City Manager Jim Pia said the forecast for a deficit comes from taking last year’s budget and accounting for costs elevating year over year. Still, Dayton thinks there’s still a mystery surrounding how the city can balance the budget without impacting service.
“It's time to have an open discussion about this $20 million budget deficit that you're projecting, why you think it occurred? Why you believe the staff thinks it can be eliminated without any sort of service cuts," Dayton said.
All of this coming as the City of Salinas prepares to welcome a new city manager, sees the resignation of a councilmember and continues their ongoing search for a new police chief. That's also on top of council just approving an increase in pay for themselves.
Salinas city leaders are hopeful a budget is balanced and emphasize the importance of this upcoming budget for the long-term future of Salinas.
“It is very important that we get this budget right. Because if not in future years, we could be facing some budgetary impacts," Dayton said.
In terms of the timeline, the initial budget will be presented on May 21, with city council approving a final budget on June 11.
