Pasadena City Council Adopts $1 Billion Operating Budget Amid Federal Funding Uncertainty

The Pasadena City Council unanimously approved its fiscal year 2026 operating budget on Monday, crafting a balanced $1 billion spending plan for day-to-day city operations. This operating budget is part of a larger, comprehensive financial plan that totals nearly $1.5 billion across all funds, encompassing the city’s Capital Improvement Program (CIP) and affiliated agencies.

The approval anticipates significant potential federal funding challenges while preserving critical city services, with a commitment to revisit potential investments, particularly in public safety staffing

City Manager Miguel Márquez described the budget as challenging, noting it contains “modest increases only where necessary” while acknowledging significant economic uncertainties.

The budget faces potentially severe federal funding reductions, including the possible 43% cut to Section 8 housing vouchers, complete elimination of public health emergency preparedness grants, and 30% reduction in Department of Labor grants.

Finance Director Matthew Hawkesworth detailed proposed federal cuts that could impact multiple city programs, with potential total losses ranging from $10 to $20 million.

The budget includes several notable allocations, including $3.6 million toward local solar projects and $3.4 million in general fund enhancements. The city also has $10.5 million in additional revenue from the previous fiscal year.

A key discussion emerged regarding the addition of additional battalion chief positions for the fire department, with Council members expressing concerns about insufficient staffing of the department, particularly in light of recent wildfire events. The current plan calls for adding one battalion chief in fiscal year 2026.

Councilmembers acknowledged the budget’s constraints while maintaining a forward-looking approach.