The Berkeley City Council approved a $1.5 billion budget for the next two years just before midnight on Tuesday, adopting major allocations for housing, public safety and community organizations amid strict planned budget saving measures.
In both upcoming fiscal years, local expenditures are expected to outpace revenue as the city recovers from major losses in funding from the COVID-19 pandemic.
The city has allocated just over $776 million for 2025 and $771 million for 2026, with a bulk of funding — about $386 million in 2025 and $397 million in 2026 — going toward staff salaries. The departments divvying up the majority of the budget are Public Works, Police, Fire, and Health, Housing and Community Services.
Both the fire department and the police department will received increased funding for the next two years. The fire department will receive $72.8 million in 2025 and $74.7 million in 2026, compared to $62.3 million in 2024, and the police department will receive $94.6 million in 2025 and $98.2 million in 2026, compared to $88.2 million in 2024. Much of the additional funding will go toward overtime budgets and filling vacancies.
The public works department is receiving the largest share of the city budget, at about $375 million for the next two years.
At Tuesday’s Council meeting, District 1 Councilmember Rashi Kesarwani raised alarm over what she said were “egregious” spending choices while the city is implementing budget-balancing measures.
“I’ve worked in other jurisdictions where tougher choices have been made … and we’re not making them right now,” Kesarwani said.
Kesarwani said one example of excessive funding was a portion of an allocation to the Small Sites Program, which is receiving $10 million over two years. The city provides forgivable loans through the program for existing buildings to be acquired and shaped up, then preserved as affordable housing.
Half of the $10 million allocation in the new budget is set aside for a project that hasn’t yet been chosen to allow flexibility. Kesarwani said though the program deserves funding, the open-ended allocation is irresponsible.
Multiple people phoned into the meeting to push for the program, saying it would help Berkeleyans remain in the city.
Councilmember Sophie Hahn, who pushed for the small sites funding along with Councilmember Terry Taplin, rejected the idea that the city is budgeting excessively, and said, “this is a recovery budget, this is not a normal everyday budget.”
“We are a city in recovery from a huge economic event — and by the way we are doing better than many many cities,” Hahn said, referring to the financial strain of the COVID-19 pandemic.
Ultimately, the Council approved the budget unanimously with some last-minute additions, including a $150,000 allocation for fixed surveillance cameras in the Elmwood, requested by the district’s Councilmember Mark Humbert. The meeting was the first since January with full attendance after resignations in District 4 and 7, and the first meeting for downtown Councilmember Igor Tregub.
Under the approved budget, multiple community agencies will receive an advance on their budget allocations from the city for next year. These include about $20 million toward local organizations that focus on arts and culture, community health and education, among others. This supplemental pocket of funding has dropped by about 20% since last year.
On Kesarwani’s request, the city agreed to require these community organizations to report back to the Council annually with spending reports (like all other organizations that receive money through the traditional funding process). Organizations that need help to create these reports will be able to request support from staff.
Correction: Staff salaries will comprise about $386 million in 2025 and $397 million in 2026, not $386,000 and $397,000.
