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City of Sacramento announces $66.2 million budget deficit. Here is what happens next

By Sacramento City Express The City is facing a projected $66.2 million budget deficit as it begins work on the fiscal year 2026–27 budget, as presented to the City Council on Feb. 10. The deficit is not the result of a recession but rather reflects a long-term structural imbalance in the City’s finances, where ongoing expenses continue to grow faster than ongoing revenues. “This budget moment requires us to make hard choices, but also smart one…
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The Sacramento Observer broke the news in on Tuesday, February 17, 2026.
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