Vallejo is grappling with a $28.54 million budget deficit for the 2026-2027 fiscal year, leading to three proposed scenarios for balancing the budget. - The deficit is driven by declines in transient occupancy, utility user, and cannabis tax revenues.
- Scenario 1 proposes cutting 70 staff positions and refunding $1.93 million from a Sheriff's contract. - Scenario 2 would override the Measure P Committee to approve full funding requests.
- Scenario 3 maintains fewer cuts but transfers investment income and contract savings to the general fund. The City Council must approve a budget by June 30.