Fresno Mayor Jerry Dyer knew the city likely would not receive $200 million for downtown revitalization from the state budget — funding unfulfilled from a 2023 pledge of $250 million.

It became a self-fulfilling prophecy after Gov. Gavin Newsom announced his May revise on Wednesday. The updated budget included nothing for Fresno.

Fresno received $50 million in the 2023-24 budget, to help with downtown infrastructure. The state was supposed to release the remaining $200 million in the next two budget cycles.

H.D. Palmer, spokesperson for the governor’s Department of Finance, confirmed the money was not in this year’s May revise. That decision to delay until next year was already made last year.

Dyer said the delay of the $200 million “is significant,” sharing as much in a text to the governor.

“I’m disappointed by that. I won’t be discouraged. I won’t be deterred. We’re going to continue to revitalize downtown with or without state funding, with or without federal funding,” Dyer said at his budget presentation Wednesday, which coincided with Newsom’s revise reveal.

Dyer said bonding — borrowing money from the bond market — is an option for a parking garage project he is proposing.

“Would I love to see those dollars in the May revise? Yes, but I’m not going to beg for them,” Dyer said.

‘Frustrated’ About Lack of Investment

Dyer said the city is not getting back from Sacramento and Washington, D.C., what it hands over in taxes.

“Sometimes I do get a little bit frustrated as a mayor, seeing how much money leaves this city in tax dollars that go to the federal and the state government. And sometimes it feels like a black hole, because we don’t get back in our city what we pay in,” Dyer said.

He said “not one cent” comes back from the state income tax city residents pay.

“Those dollars are ours to begin with. So the fact that we would get $250 million back for revitalization downtown, those are our monies to begin with,” Dyer said.

However, Newsom’s budget said it will invest money from Cap-and-Trade auctions “to fund major climate projects like high-speed rail.” That could lead to $1 billion a year for HSR, Politico reported.

Dyer has said the HSR station, currently under construction in downtown Fresno, is vital to downtown and Chinatown.

Assemblymember Alexandra Macedo, R-Tulare, said that is a bad spending decision.

“Audit after audit, the High-Speed Rail has found to be mismanaged and plagued with delays. After 17 years and $13.7 billion already spent, the High Speed Rail Authority has not laid a single foot of track,” Macedo said in a news release.

The mayor did not blame Fresno’s representation in Sacramento, lauding state Sen. Anna Caballero, D-Merced, and Fresno Assemblymembers Esmeralda Soria and Joaquin Arambula, both Democrats.

“Both of them have fought hard to keep these monies locally. And we’re going to continue to beat the drum at the state level,” Dyer said.

Concerned About Federal Grants

Dyer also expressed concern about possible federal grant cuts.

A $400,000 public works grant called Vision Zero is in jeopardy. The grant would help reduce pedestrian and bicyclist deaths, Dyer said.

Housing grants are also in peril.

A $20 million loan through a federal program for a new senior center at Blackstone and Ashlan avenues may not happen, Dyer said.

If that money is lost, the city would take on more debt through a bond, which could cost up to $2 million a year to repay.

“What happens at the federal government definitely impacts us locally. What happens at a state government impacts us locally,” Dyer said.

Confrontation With Councilmember

Dyer also unveiled his budget to the Fresno City Council on Thursday, largely mirroring his Wednesday news conference.

After councilmember Miguel Arias noted that councilmembers had received their budget binders the day after the mayor held his budget event for the media, Dyer said receiving the binders two weeks before hearings begin is early.

Arias then told the mayor to expect budget requests and questions the night before hearing dates.

“Let me just tell you, if that’s retaliatory, Miguel, then our staff will get it to you when they get it done. So don’t make threats from the dais, alright?” Dyer said.

At the end of Arias’ questioning, they apologized to each other publicly.

“Without us, GV Wire wouldn’t be around,” Arias said to smiles.

Dyer, Councilmembers Talk Budget

While he balanced a budget with a $50 million hole this year, Dyer said the city is already looking at a $30 million deficit for Fiscal Year 2027. Stronger sales taxes would help, Dyer said.

Dyer reiterated he does not see a reduction of services the public will see. But, the city is at the cutting limit.

“We have cut to the bone before we start seeing service impacts out there,” Dyer said.

Councilmember Tyler Maxwell said he wants to avoid any personnel cuts in the future.

“Layoffs are a last resort,” Dyer said.

Annalisa Perea noted that $1 million for business façade improvements did not make the cut. She also wants to protect bicycle cops, and money for childbirth doulas through the Black Wellness & Prosperity Center.

Perea also announced that her partner is expecting twins due in July. But if they come early, she said, there may be an empty seat during budget hearings in June.

Dyer and City Manager Georgeanne White deliberately avoided using the term “hiring freeze,” to describe Dyer’s plan to hold all departments at a 6.18% employee vacancy rate. The city is adding 41 positions — including four police officers funded from other city departments; and employees for public works projects paid for by grants already awarded in prior years.

Answering an Arias question, Dyer said he would support Advance Peace, a program to help reduce gun violence. The group is at risk of losing federal funding.

Mike Karbassi floated an idea for the city attorney to go after petty thieves.