Riverside council advances budget with $27M shortfall and public works cuts

The Riverside Record: Deputy Finance Director Sergio Aguilar presented a proposed $1.57 billion budget for fiscal 2026-27 — operating plus capital — and $1.59 billion the year after. The General Fund faces a projected $27 million shortfall in the first year, growing to $34 million in 2027-28. The Measure Z fund faces $9 million and $12.4 million deficits over the same span. Aguilar attributed the gaps to slowing tax revenue, rising personnel costs and broader inflationary pressure.

Staff's proposal closes the gap by holding about 38 positions vacant, drawing on surplus reserves, raising user fees, and trimming general spending — including roughly $8 million in public works cuts over two years. Public Works Director Nathan Mustafa said some pavement work would be backfilled by Riverside County Measure A dollars and federal and state grants. Falcone said neither was good enough given existing complaints about Riverside's roads, and asked that any cuts come from the council's own budget instead.

Riverside voters decide separately on a Measure Z sales tax increase and extension on the same June 2 ballot. Staff's deficit projections assume the current rate; any additional revenue from a successful Measure Z would require a separate council vote to spend. The 4-1 budget motion sends the package to a June 23 public hearing.