Following today’s presentation of the Mid-Year Budget Monitoring Report, Mayor Todd Gloria reaffirmed his commitment to fiscal responsibility, long-term stability, and protecting core services as resources allow. This comes as his administration continues the work of closing a structural deficit built up over decades.

“From day one, I’ve been clear that we’re not going to run from our problems or push them off – and my administration is taking the responsible, methodical steps to keep the budget balanced,” said Mayor Todd Gloria. “Yes, our City budget is under pressure, but it is manageable with disciplined action and clear priorities.”

The mayor’s administration implemented a series of measures designed to control costs and ensure the General Fund does not end the fiscal year with a negative balance, while maintaining essential services. Those actions include:

• A “request-to-fill” process for hiring to strategically manage and evaluate the filling of vacant positions.
• Suspension of discretionary expenditures.
• Limits on non-essential overtime.
• A thorough review of external contracts for potential savings and efficiencies.

“If the administration had not put in place these mitigations, we would be talking about a much larger mid-year shortfall,” said Rolando Charvel, the City’s Chief Financial Officer. “By carefully managing vacancies and slowing discretionary spending, we’ve been able to keep personnel costs down and keep this projection manageable.”

While the updated revenue information reduces the immediate mid-year budget shortfall, the mayor continues to emphasize that the broader structural work is not yet finished and that broader macroeconomic conditions from rising costs will mean tough choices ahead in the next budget.

“As I made clear in my State of the City address, we have to be honest about our financial reality,” said Mayor Todd Gloria. “The next budget will require tough choices, and we will not be able to do everything we might like. My commitment is that we will manage this shortfall and keep our books balanced by making thoughtful, legally sound decisions that protect this City’s long-term stability for all of us.”

When the Mid-Year Report was initially released on Jan. 30, it projected a $16.8 million revenue shortfall for the City’s General Fund. With updated financial data, the General Fund shortfall for the current year is now projected at approximately $1.8 million, which the administration will address through cost-control measures already underway.