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With Fresno Budget $20 Million in the Red, Belts Tighten at City Hall
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By David Taub, Senior Reporter
Published 1 month ago on
February 13, 2025

Fresno is facing a $20 million budget shortfall, city officials said in a mid-year budget report to the city council on Thursday. (GV Wire Composite/Paul Marshall)

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Fresno is facing a $20 million budget shortfall, city officials said in a mid-year budget report to the city council on Thursday. And, it could get worse.

There is no more federal rescue dollars to help with the budget anymore, City Manager Georgeanne White said.

“Unless the federal government comes to our rescue again … we’ve had those crutches for us and unfortunately those are gone,” said White.

Fresno City Council President Mike Karbassi said the city has a revenue problem, especially with Valley Children’s Hospital starting to develop its land for retail space in Madera County.

“That’s a real threat to our ability to provide services. They are a hospital, we’re a city. We have to provide municipal services and that is being threatened,” Karbassi said.

Developers are “leapfrogging” Fresno, Karbassi said. That means people receive services and work in Fresno, but pay property taxes — a key revenue driver  — in Madera County.

Karbassi didn’t mention the “T” word — taxes — preferring “revenue enhancer.” He balked at asking the public to raise taxes while noting that Clovis voters recently implemented a 1-cent sales tax for public safety and city services.

He blasted litigation from groups “that get out-of-town money, don’t create one job or build one house.”

The city has faced several lawsuits from environmental justice groups, increasing the difficulty of building.

Revenue Is Short of Projections

Revenue projections are down for the fiscal year, about $5 million less than estimated.

Sales tax ($4.5 million under projections) and cannabis revenues ($4.9 million) are dragging down the estimate, made as of Feb. 4. Several items are above projections, but none greater than $1 million. Franchise fees leads the way at $900,000.

Current economic conditions are a factor in the sales tax decline, city budget director Henry Fierro told the council. The cannabis discrepancy is the lack of pot stores open. The city predicted 19; only 13 are open.

And, revenue projections for the stores that are open are missing the mark.

“They are just not making that revenue by significant numbers,” White said, up to 65%. The reasons, she surmised, were an oversaturation and competition from the illicit market.

Some figures are optimistic. Property tax revenue growth (5.83%) is ahead of projections (5.55%).

Despite the dire budget numbers, several councilmember said they want to preserve the Eviction Protection Program, providing taxpayer-funded attorneys to city residents facing “illegal” evictions. The current budget is $2 million, but that won’t get the program to the end of the fiscal year in June.

City Attorney Andrew Janz said his office needs another $500,000 to keep the program solvent.

The negative budget news is also affecting the city’s staffing.

There is no official hiring freeze, White said, but a hiring slowdown. Only positions “absolutely necessary” will be filled, she said. There is nothing in the budget for raises.

Councilmember Nick Richardson told department heads it’s “belt-tightening” time.

Other Notes

Richardson offered $10,000 of his own salary to help pay for 100 follow-up swim lessons for slow learners. The motion passed 6-0, with the council officially removing charges for extra lessons.

Without discussion, the city council voted 6-0 on the consent calendar to disband the Immigrant and Resident Affairs Committee, to transition to a less formal city-county Immigrant Affairs Working Group.

The council is apparently rotating who gets the honor to lead in the Pledge of Allegiance. So far this year, Annalisa Perea and Miguel Arias have led the Pledge. For the past few years, Garry Bredefeld — the only veteran on the council at the time — led. Richardson, who succeeded Bredefeld, is the council’s only veteran.

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David Taub,
Senior Reporter
Curiosity drives David Taub. The award-winning journalist might be shy, but feels mighty with a recorder in his hand. He doesn't see it his job to "hold public officials accountable," but does see it to provide readers (and voters) the information needed to make intelligent choices. Taub has been honored with several writing awards from the California News Publishers Association. He's just happy to have his stories read. Joining GV Wire in 2016, Taub covers politics, government and elections, mainly in the Fresno/Clovis area. He also writes columns about local eateries (Appetite for Fresno), pro wrestling (Off the Bottom Rope), and media (Media Man). Prior to joining the online news source, Taub worked as a radio producer for KMJ and PowerTalk 96.7 in Fresno. He also worked as an assignment editor for KCOY-TV in Santa Maria, California, and KSEE-TV in Fresno. He has also worked behind the scenes for several sports broadcasts, including the NCAA basketball tournament, and the Super Bowl. When not spending time with his family, Taub loves to officially score Fresno Grizzlies games. Growing up in the San Francisco Bay Area, Taub is a die-hard Giants and 49ers fan. He graduated from the University of Michigan with dual degrees in communications and political science. Go Blue! You can contact David at 559-492-4037 or at Send an Email

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